Over stated of the value of the 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 the WIP)

Some times the Variance of is more than 600%

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

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Ludwig Reinhard Microsoft Employee on at

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Hi MMQ,

The big difference seems to come from the estimated cost amount of line no 2, which seems to be a sub-BOM.

If I divide the estimated cost amount by the estimated consumption, I arrive at a cost price of approx $995/kg.

Dividing the realized cost amount by the realized consumption gives approx $1.5/kg.

To me it looks as if you need to recalculate and active a new cost price of your sub-BOM.

Can you test that in a demo/test environment?

Best regards,

Ludwig

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