Hello Sapians,
In Process Order, Client did not settle the variances for 6 months. Finished goods Materials are maintained in Moving Average Price. I found that these process orders are Split Valuation by Batch.
When I went to Costs--> analysis, I see the debits and credits to the Process Order.
Cost Ele Text Tot Act Csts Target/Actual Var
510005 Cons_Pack 399.07 399.07
510005 Cons_Pack 1,138.88 1,138.88
510005 Consumption Packaging 206.96 206.96
510020 Cons_Finished Goods 32,526.68 32,526.68
520100 Prod Order Settle-Std 23,585.97- 23,585.97-
520100 Prod Order Settl-Std 25,964.70- 25,964.70-
520110 Prod Order Settl-Vari 23,348.30- 23,348.30-
633705 Subcontract Labelling 690.36 690.36
37,937.02- 37,937.02-
Because of the customer requirements this Materials are moving average price and order has settlement rule of 100% to Material. They missed settlement of the Production Order for 5 months and they want to settle it now.
1. What happens to the Price of the Material?
2. In the above example the variance is negative which will be credit from the Inventory when you do the settlement of the Process order?
3. In Moving Average Price Scenario, system will automatically update the Master Master Price or do we need to enter it Manually?
4. I see there is COGS-Prod Variance Account is debited and Variance account got credited, does this mean they are confirming the sales order? how does that effect when I do the Settlement for the undone periods?
5. What happens to the material Price and inventory account if they settle all the variances in one period? what happens to material price and Inventory account if settlement is done period by period?
Please let me know if need any other details.
Thank you,
-Harter