web
You’re offline. This is a read only version of the page.
close
Skip to main content
Community site session details

Community site session details

Session Id :
Supply chain | Supply Chain Management, Commerce
Suggested answer

Production Variance - price variance - quantity variance

(0) ShareShare
ReportReport
Posted on by 978

Hi experts,

I have below concerns for Production Variance:

1. The quantity to calculate the standard cost for Finished good is different with the estimated quantities from BOM Line

Let said: the consumption per unit is 40.90, but on the standard cost the quantities are round into 42

On standard cost calculation:

pastedimage1648805462312v1.png

On Production estimation:

pastedimage1648805508286v2.png

2. The different between Net realized quantity and Allowed quantity: The Unit for these items are the same on Product master data and BOM Line. (Unit: each)

pastedimage1648805564696v3.png

3. The different between Allowed cost/Allowed quantity and Standard cost price of these items:

Resource Net realized quantity Net realized cost Allowed quantity Allowed cost Allowed cost/Allowed quantity Current active Standard cost
M0001 10.00 38.50 10.00 38.50                                                   3.85                            3.85
M0002 10.00 789.90 10.00 789.90                                                 78.99                          78.99
M0003 10.00 229.90 10.00 229.90                                                 22.99                          22.99
M0004 409.00 11,145.25 411.00 11,445.00                                                 27.85                          27.25
M0008 13.00 10,400.00 11.00 16,000.00                                           1,454.55                        800.00
M0021 11.00 495.00 10.00 450.00                                                 45.00                          45.00

Thank in advance,

Best regards,

Thu,

I have the same question (0)
  • Aparisi82 Profile Picture
    2,180 on at
    RE: Production Variance - price variance - quantity variance

    what is the specific question you have?

  • Suggested answer
    Osvel Reyes Profile Picture
    46 on at
    RE: Production Variance - price variance - quantity variance

    Can you take a look into the calculation group from your BOM?

    I am not quite sure if I may be understanding correctly the issue, but maybe the parameter on the calculation group can be different to the standard cost, just make sure the calculation group for your Finished good is using the same cost price model.

    Navigate to the released product, under the Engineer section, you will find the Calculation group field, go to details and make sure the group is using the Inventory price as Cost price model.

    Calculationgroup.PNG

    Otherwise you will calculate your BOM from different sources:

    • Item cost price â€“ The cost price from the Released product table is used.
    • Item purchase price â€“ The purchase price from the Cost price field on the Purchase tab of the Released product list page is used.
    • Trade agreements â€“ You can configure trade agreements for specific combinations of items and vendors, or for specific sites. Then, when you select the Trade agreements option here, the trade agreement that you created for the purchase price together with the item and site will be used.
    • Inventory price â€“ The current inventory value for the item is used to calculate the unit cost in the BOM calculation. A unit cost price is calculated only if the posted quantity and the physical quantity are more than 0 (zero).

    If you are using a different parameter than the Inventory Price indeed, just select it and run the calculation BOM again and let me know your findings.

    I hope this helps.

    Best,

  • WillWU Profile Picture
    22,361 on at
    RE: Production Variance - price variance - quantity variance

    Please wait for the help from functional consultants

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Abhilash Warrier – Community Spotlight

We are honored to recognize Abhilash Warrier as our Community Spotlight honoree for…

Leaderboard > Supply chain | Supply Chain Management, Commerce

#1
CA Neeraj Kumar Profile Picture

CA Neeraj Kumar 987

#2
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 261 Super User 2025 Season 2

#3
BillurSamdancioglu Profile Picture

BillurSamdancioglu 176 Most Valuable Professional

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans