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Jun 28, 2011 at 11:01 AM

Total Plan & Actual Cost in Production


Hi All,

We are using Batch Level costing for Raw Materials. I am using Material Valuation as Valuation Price According to Price Control in Material Master for both the Costing Variants PPP1 (Production Order: Planned) and PPP2 (Production Order: Actual)

The Average Price of Material is 111 INR and in Batch 1 the price is 20000 for 200 Qty and for Batch 2 the price is 40000 for 400 qty.

Now When I have created Production Order where RM qty is 200 in Total Plan Cost it is showing as 22200 and when I am doing goods confirmation system is picking price according to Batch 1 which is on FIFO. so every time there will be variance in the Production Order if Planned Qty = Actual Qty.

Please let me know what settings need to be done for Planned Price Calculation.

Br, Vivek