Estimated Cost amount is different from actual/realised cost amount in Production process in AX 2012 R3 system

(0) Share

Report

Posted on by Community Member

Hi,

I am using AX 2012 R3 system.

I have used FIFO costing method for all raw materials and Finished products.

I have used formula and batch order to run Production process, in which i am getting the difference in cost amount between Estimated and Realised cost amount.

I have used 3 raw materials and i have used totals 3 BOM's (2 sub bom's and 1 main bom)

I have used subcontracting process for 2 service items in the BOM/Formula configuration.

I have used Currency Exchange rate as 1 Euro = 1.10 USD.

Actually my requirement is to get both the actual and estimated cost amount are same.

I want to know why i am getting the difference between Estimated and realised cost amount in FIFO costing method.

Kindly check this post and do reply with the suitable solution.

Thanks and regards,

D Praveen Kumar.

*This post is locked for comments

I have the same question (0)

All responses (9)

Answers (0)

Fredrik Sætre 12,644 on at

Like (0)

Report

Hi there,

Can you please post a screen shot of the cost calculation? In the view tab on the prod.order. Estimated vs. Realized consumption...

Was this reply helpful? Yes No
Fredrik Sætre 12,644 on at

Like (0)

Report

Also... Is this the financial or physical cost?

There is a parameter you can use to always post the physical cost to be equal to estimated and not consumed...

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Hi,

I have attached the screenshot of Estimated Vs Realised consumption of the Final BOM in view tab of Production order.

Kindly check this screenshot.

Thanks and regards,

D Praveen Kumar.

Was this reply helpful? Yes No
PrzemekG 725 on at

Like (0)

Report

Have you reported error quantity as finished against this WO?

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Hi,

I have done report as Finished for all Quantity then only i have done ended process.

There is no error quantity in this batch order.

I am using Batch order here.

Thanks and regards,

D Praveen Kumar.

Was this reply helpful? Yes No
David_Swe 40 on at

Like (0)

Report

Hi Fredrik,

Where can I find the parameter ?"parameter you can use to always post the physical cost to be equal to estimated and not consumed..."

Was this reply helpful? Yes No
Suggested answer

Weaveriski 23,620 Moderator on at

Like (0)

Report

You are FIFO - the estimated cost will use the current average. The actual when finished will use the actual FIFO cost of the item. In a FIFO environment the only way this would be the same is if average equalled FIFO and there was no cost movement of any component between estimate and ending, and labour was exactly as estimated.

If you want estimated to equal actual then move to standard costing!

Was this reply helpful? Yes No
Rafael Araujo 183 on at

Like (0)

Report

Hi Praveen,

How do you solved the issue? I have the same problem... the cost price is 0.31

Was this reply helpful? Yes No
Weaveriski 23,620 Moderator on at

Like (0)

Report

The post is 6 years old, I suggest you post yours as a new question.

The simple answer is that the cost is the cost based upon your costing method and processing. You would need to post more screens with questions on why you feel it should be different etc.

Was this reply helpful? Yes No