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How standard cost reconciliation is done production order?

Reconcile after the production order is Ended not at RAF stage (you can RAF before all issues are done for example).. The stage “Ended” is when variances are calculated.

"Production variances are calculated after you end a production order for a standard cost item. The variances reflect a comparison between the reported production activities and the calculation of standard costs for the production item. The variances do not reflect a comparison to the production order's estimated costs

Try the Inventory Value Statement report' (with Standard Cost Breakdowns), There are various ways to configure this report.

However, its important that all components items are assigned cost groups and that those cost groups are assigned a cost type. Similarly for labour cost reporting, ensure that a Cost group is associated with the ‘Cost categories’ that are specified on the Route’s resource or resource group

In inventory and Warehouse parameters, Bill of Material -= Set your Bill of materials ‘Cost control’ settings to activate Cost breakdown by cost group in . Without activating these settings, the report will NOT pull in a breakdown by cost group. AX offers two options: “No” and “Sub ledger”. Specify “Sub ledger” so that AX splits costs by cost groups. In turn, this affects how variances are calculated. If you don’t split cost by cost groups,then variances will also not be split.

Also set “Variances to standard” to value “Per cost group”. That means that AX calculates variances per cost group. i.e. for variances for cost of materials, costs of labor, and overhead costs. By calculating the variances per groups you are able to set different ledger accounts to post each of these.

Posting set p separate accounts for each.

“Production price variance” – posts for price variance of materials or resources.
“Production quantity variance” – variances because of difference in quantity consumed of materials or resources.
“Production substitution variance” – variances because different material or resources was used.

To post material/labor/overhead variances on different ledger accounts, use “Cost code” and “Cost code relation” fields to set up appropriate ledger codes.

.If you need to make changes. then you will probably also need to activate a new standard cost calculation.

Next read the help

https://docs.microsoft.com/en-us/daynamicsax-2012/appuser-itpro/about-analyzing-common-sources-of-production-variances

https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-analyzing-reported-costs-for-current-production-orders

https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-analyzing-variances-for-a-completed-production-order

Next get to a test system Set up a simple bom and then create a lot fo works orders,

Process the first order with no variances and see how it posts.

Then for each subsequent order make a change to see how this posts e.g. over issue, under issues, over receive under receive, substitute, scrap, change the cost of a component before RAF, make a different lot size etc.

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