Production substitution variances due to estimation on resource groups

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Posted on by Arne

Hi !

We are running standard cost, and see substitution variances for all our routings. We can see that the reason is that our estimation is using the resource groups while the actual costs are from the resource itself. Why are the resources not rolling up to the resource groups in the production costing? Does anyone know of a parameter/setup that controls this?

Regards,

Arne

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Arne 10 on at

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Anyone?

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DL-03070755-0 2 on at

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Does anyone how to control this in a standard cost model? Regardless of configuring the parameter 'Criteria for main account resolution' to 'Item and category' or 'Item or Resource'. In any case, a substitution variance (and quantity variance) is posted because our estimation/item is using the resource group, while the actual production order is using individual resources.

Production variance:

Overview costing

Resource SPK-ARB-01 is part of resourcegroup RGS-SPK

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Jason D Robinson 8 on at

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Hello, did you find a solution for this issue?

We are encountering the same issue where when a resource group is used in a production route and jobs are scheduled against individual resources (within those groups), a substitution variance is shown vs. standard cost.

Kind regards,

Jason

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Arne 10 on at

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Unfortunately no answers to this post. We have decided to change the costing resource on the routing to be Resource instead of Resource group. That made the variances go away

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