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Over stated of the value of reported as finished

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Posted on by MMQ

When I do the reported as finished for production order the value of estimated cost is more than the material cost and the overhead rates (more than the Dr. value of WIP)

Some times the Variance more than 600%

WHY and how it cames - what the method of pricing of it - my end balance of WIP CR. for this issued

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Ludwig Reinhard Microsoft Employee on at

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Hi MMQ,

Can you share some screenprints that illustrate the issue?

In general, the report as finish postings are based on estimated costs that have been defined in the past. Maybe your estimates are outdated? There can be many other reasons responsible for this and it would be great if you could share some screenprints that illustrate the problem.

Many thanks and best regards,

Ludwig

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MMQ 30 on at

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Hi luqwing

Sure,

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jannawangD365 on at

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What item model does the item use? standard cost? weighted average?

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Junaid Idrees on at

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Hi MMO,

I believe this is happening because of costing principal setup in item model group. Are you using FIFO or standard costing?

I think running recalculate inventory for your raw materials can solve this problem. Try to run that on test environment and check the impact.

Also just To find the root cause you can do one more thing. You can analyze a production estimated costs and actual costs by using the "Price calculation form" or the Cost estimates and costings report to check estimated cost.

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