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Former Member
Nov 02, 2012 at 08:14 AM

consumption cost in raw material cost component structure OKTZ

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Hi,

I got the help from forum of the consumption.

To make it clearer, I will show by process/figure to get clearer understanding.

1) 2012-10-05

during goods issue to production order, debit consumption credit raw material stock.

say the price of the raw material is $1 and quantity is 1000, then the consumption is $1000.

2) at the same time, in MM03, the moving average of the raw material is $1.

3) in OKTZ raw material cost component, is referring to consumption account.

4) after some time, the moving average price has moved to $1.20

5) 2012-11-01 costing run

to determine the raw material cost, it is based on $1.20. say quantity issue is 100, then the raw material cost is $120

So my question now is, what is the purpose of consumption account which defined in raw material cost component? because the raw material cost should be $120 when it is used to cost FG standard cost.

thanks