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Production Order Planning Variance

Dear All,

I have maintained activity types & rates and those are assigned in production routing.

I had created standard cost estimate for product.

Now I am creating production order and while planning I am getting variance in all the assigned activity types, However material cost is matching.

But activity type cost is decrease by 25% for all activity types.

Regards,

Mahendra Gupta

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Aug 04, 2012 at 04:17 PM

    Hi Mahendra,

    You need to check the strategy of Planned Costing variant assigned to production order.

    Pls review Valuation strategy of Valuation variant.

    and also check Whether Plant Qty of Activity in productio order are same in CK13n.If yes then value difference is due to Rate.

    You will get rate information from Planned Valuation variant assigned to Production order.

    regards

    RK

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  • Posted on Aug 06, 2012 at 08:20 PM

    Mahendra,

    Since you are saying all activity prices are lower, please check if a value less than 100% has been entered in the column "Efficiency" in transaction CA03. Double-click on each operation and check under "Operation Details". Just a guess!!!

    Cheers,

    TD

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