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PP product costing

Logistics : PP

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PP product costing

Postby Trevorm » Mon Oct 08, 2012 11:15 pm

Hi

when doing the product costing for the ROH materials and they have a standard price everything works
fine when using moving average the product costing doesnot work, how is it possible to do the
product costing for ROH with moving average

Thanks

Trevor
Trevorm
 
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Re: PP product costing

Postby erik0972 » Tue Oct 09, 2012 8:35 am

Suggest that you check the valuation variant used
If the Strategy Sequence [Material Valuation tab] uses 'Valuation price according to price control' before considerieng std or MA - then you should get whichever cost is used to value inventory at the time the cost estimate is computed
erik0972
 
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Re: PP product costing

Postby Trevorm » Tue Oct 09, 2012 1:57 pm

Hi thanks for the help
Just another question i have maybe you can help?
my roh materials are moving average everything is working fine
when the moving average is changed by a GR or something else the PP order still remembers the previous
cost estimate, how do i get the PP order to always look at the current moving average of the ROH materials

Thanks again for the help

Trevor
Trevorm
 
Posts: 486
Joined: Thu Mar 09, 2006 8:54 am

Re: PP product costing

Postby erik0972 » Tue Oct 09, 2012 2:50 pm

If you are looking for something that is going to automatically recompute your planned costs when the MA for a component changes, I don't think your going to find it .. the MA is strictly an inventory valuation number
I think there are two ways to trigger your production order planned cost recomputation - an indivdual basis usinge CO02 ... or enmass using COHV

I tend to look at the use of MA vs Std as determining where you want to view your variances .. with Std - you'll most like have purchase price varaince for the material but no production order variance for the material [unless your actual issued amt differs form the plan] .. with MA - you typically won't have purchase price variance but since the planed cost for a production order [and the standard for the produced material] will use the MA at the time of order creation and the actual will use the MA at the time of issue, you can get production variance for the material even when the correct quantities are issued
You might also want to check your planned costs with respect to the cost of the material being produced - hopefully its valued at standard and will be using the std cost form the material master - in this case, updating the plan when a component MA changes will just update your planned variance ... best case is that the actual will use the same MA and the actual varaince will match the plan
Also hoping that your produced material is not moving average valued ... strange things can happen if this is the case - specifically and COGI errors, the time needed to clear them, and your settlement process can cause some MA changes that you don't want

All of that may come down to .. what are you looking to gain by updating the planned cost estimate for the production order?
erik0972
 
Posts: 137
Joined: Tue Jan 11, 2005 7:50 pm

Re: PP product costing

Postby Trevorm » Tue Oct 09, 2012 11:26 pm

Hi

Thanks for all the info i am a MM consultant helping out on PP as we dont have PP resource.
what they would like is the finished goods to be received into stock from the PP order with the total value of the roh materials
if the ROH materials moving avarage has changed this wont be the case, doesnot look like this can be done

Thanks again for all the help

Trevor
Trevorm
 
Posts: 486
Joined: Thu Mar 09, 2006 8:54 am


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