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Jan 16, 2019 at 09:21 AM

Production variance for non valuated BOM component


Dear all,

I am stuck with a problem and really don't find how to come through

1. My company have some materials made avaible by its customer. We are a subcontractor.

2. I manage these components in my production BOM

3. I cannot use supplier consignment, because the property is not transferred to my company, the goods belongs to the subcontractor and therefore if using consignment stock

- The stock is being transferred in an account 380 000 - Purchasing in Process before consignment in mrko

- and after mrko, it is becoming a debt to the supplier (which is also our customer, but we do not owe the value).

I have tried to value the product at 0,01 for 10 000 PCE - therefore, the value is minimum but it is not agreed by our accounting department....

4) Therefore, I have used a non-valuated material type - UNBW; From the accounting point of vue, all is OK

But from a controlling standpoint there is no production variance analysis for these product.

And this is not OK. Even if we do not own the materials, they are critical components and we must follow the real consumption versus the theoretic one in the process order.

So, my question : Is there a way I can follow up Production variance (in quantity !) for a non valuated material ?

Bear with me, I am a production guy ... little Fi-Co knowledge.

Many Thanks ; regards,

Pierre Mikaël Noat