Hi,
Does anyone know formula or the code that calculates the following production variances?
Thank you!
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OK, I distilled the formula that so far worked flawlessly for total variance:
Variance = RealizedCostAmount - RealizedConsumption*Cost
You need to be careful and capture the correct cost as it obviously may change. The formula even works for RAF work orders for forecasting, you just need to replace RealizedConsumption with RAF rollup since RealizedConsumption is a zero at this stage.
Thanks everyone for your tips and ideas!
Hi Adineh,
That doesn't answer my question. I'm working on the code to calculate it on my own for forecasting.
Thank you
This may help.Hi
Information is availble on production control module, view tab, price calculation form.
Differences between estimated & realzied columns for ended production orders are there. There is also a variance button which shows the variance in details.
There are two reports in reports area which shows the varinaced too. Check them please.
Regards
Looks like I need to dig into the \Classes\ProdStandardVariance\calcVariances.
I've done some research as well and I do get these different types of variances. What I really need is to calculate the variance that's being posted as adjustment when a work order is ended. Essentially, it's the value you can find in Price calculation >Production variance form Total variance field and it's also being inserted into InventTrans.CostAmountAdjustment field after a WO is ended. I already built some reports that analyze ended work order variances. Now I need to create a forecasting report that will warn users of any potential variances on RAF work orders before they are ended. This will allow users to correct work orders that might have wrong information entered, especially work orders with biggest $$$ impact. Ability to glance at future potential variances would allow us to be more proactive.
I've had some partial success recreating the code which only works for certain scenarios. So I just wanted to find out if anyone had any success pulling these figures.
In principle Production variances are calculated after you end a production order for a standard costed parent item.
The variances reflect a comparison between the reported production activities and the calculation of standard costs for the production item i.e. the costed BOM. That is the standard at which the produced goods are held in inventory
The posted variances do not reflect a comparison to the production order's estimated costs. So there may be a variance within the order as estimated and then between the value of the goods as costed by the order, and the value when it enters inventory.
The basic logic is that the received finished good has a value based on the BOM at the time of estimate and the value that goes into WIP should = the value that comes out of the production order.
So for the planned quantity the sum for all components of the planned quantity x the cost at the time the bom was calculated and should equal the cost of the actual components used x their costs at the time of issue for the parent quantity produced.
So if you produce fewer or more goods than planned or use a different quantity or a different material or the material costs changed during the life of the order, or you updated the BOM rolled cost then variances will be reported.
A substitution variance might be partial or complete substitution, it might have a different cost, you might and as a new line and leave the original line there (which gives mrp a headache) you may or may not adjust the original component quantity- you may or may not re-estimate-your fixed costs may be spread over a different quantity than the bom so all of those will affect the calculation.
There are other factors like overhead, and route costs, and fixed and variable scrap allowances, lot sizes etc but the what goes in should balance what comes out rule of thumb applies.
The Production order variance form clearly shows the planned vs actual by component of cost and quantity when you need to dig into details.
technet.microsoft.com/.../hh352324.aspx
technet.microsoft.com/.../gg242850.aspx
adeelkhanaxian.wordpress.com/.../substitute-variance-in-production-order-_-standard-ms-dynamics-ax-2012 see the script at the end
I am a developer. This is a brief description of production variances to the best of my knowledge.
Production variances will not be posted until the production order is ended.
Substitution variances - these are created when something creates an actual cost in the production order that does not match one of the costs listed in calculation of the applicable standard cost. For example, if a material was picked into the product that is not in the e-BOM. Since the resource identifier of the cost can't be matched it must be substitution variance.
Quantity variance - if the route says it's going to take 3 hours, but it took 4 instead. Or maybe you were supposed to consume 10 pcs of raw material, but consumed 12 instead.
Price variances - these can come from a variety of sources. I usually see them created alongside labor hour quantity variances since the "price" of overhead was not the same as the one that was calculated. I'm not sure, but you might also see them on actual cost items that are picked into a standard cost BOM type item.
You might also see
Lot size variances - fixed costs like setup are distributed across the standard order qty during cost calculation. if you're production order qty is not the same as the standard order qty and the route (or less commonly the BOM) has fixed costs in it then the fixed cost per part will be off creating a lot size variance.
Revaluation variances - these are created when a standard cost is activated in between a physical and a financial receipt. For example, some materials get picked into a production order at a certain cost. Then something gets updated and the cost gets rerolled and activated as something else. Since AX will revalue inventory at the time the cost is activated and WIP is part of inventory the material transactions will get updated.
I think your link is broken.
Hi D.,
I do not have a formula available but a hint that might help getting started. Please see: technet.microsoft.com/.../gg213654.aspx;MSPPError=-2147217396
Best regards,
Ludwig
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