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author's profile photo Former Member
Former Member

costing issue in process order

Hi everybody,

We are facing a problem now like... for a FG material we have changed the BOM, updated recipe but costing release was not done before that a process order had been created, material release carried out, process order confirmation made, GR made and the stock is there in FG location, In the cost analysis it shown Rs. 1.14 lakh as variance.

Now we reversed the stock from FG location, canceled the confirmation and changed the order qty to 1nos, to make the order dummy, but still cost analysis shows Rs. 1.14 lakh variance.

Help us to resolve this.

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    author's profile photo Former Member
    Former Member
    Posted on Sep 28, 2011 at 05:45 AM

    Hi,

    Now for the finished good create material cost estimate with quantity structure

    Create standard cost estimate (marking and release to be carried out)

    now for the same old process order in the cost analysis u can see different value for total target cost

    carry out confirmation and u will get the total actual costs based on the activity types u have assigned

    -Variance=(difference between total target cost and total actual cost)

    Variance related settings are done in consultation with Controlling people.

    Regards,

    Raj

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  • Posted on Sep 28, 2011 at 05:41 AM

    Please Check in cost analysis and select cost trend in Co02 , you can find where the variance is coming,

    Check the Goods issue material and value, if the GI is made, then cancel the material document and do the costing run and redo the GI GR and confirmation.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 28, 2011 at 05:44 AM

    it shows variance in FG consumption G/L..

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 28, 2011 at 05:55 AM

    closed thanks...

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