Product cost by order - settlement with distribution rule

[Former Member]

Dear All,

While doing the settlment, the system posts only varinance cost to the object , if we have only one receiver object. but if we have two receiver objects apportioning the variance cost 50% to each of the object (one is Mat and another is ORD category)

. in this case , the system divides the total actual cost to each of the receiver and it posts the variance cost only to the materials. below are the example

Material -- Mat A and service Order : Serv X

if the variance cost is 100

1. if the setttlment rule is -- 100% to Mat A, then it posts the variance cost 100 to Mat A

2. if the setttlment rule is -- 100% to Serv X, then it posts the variance cost 100 to Serv X.

3. if the setttlment rule is - 50% to Mat A and 50% to Serv X, then it transfers the total actual cost and variance cost as below

Mat A 600 (assuming 1000 as total cost and 100 as variance - so takes 500 + 100)

Serv X -500

Expected result (only variable cost has to be apportioned and posted like below)

Mat A 50

Serv X 50

Expecting your valuable suggesstions and guideline at the earliest

Thanks

[Former Member]

Hi,

I understand that the Production Order is stats DLV as you are calculating the Variances.

In cases where no Cost Estimate updated for the Material before the Goods Receipt, Target costs are not calculated during the variance analysis.

This reslts in updating the entire actual cost as Variance and will be transferred to the Settlement receivers based on the Settlement Rule during the settlement.

Regards

Umapathi G

[Former Member]

Not totally sure I understand the scenario, but if you use a non-valuated material then the total cost will be allocated based on your settlement rule (in your case 50% to each receiver). If you are using a valuated material then the total cost of the order is reduced by the value of the goods receipt prior to settlement. Only the remaining costs are then settled to the receivers and those costs will be allocated based on your settlement rule.

Thanks,

[Former Member]

Hi,

Thanks for your reply. but as it is a valuated material, the system has to settle only the variance cost and that has to be split to the receivers. But it is not happening rather it settles the total actual cost.

Thanks

[ajaycwa1981]

Hi Natarajan

I think the system behaviour is correct.. If Valuated stock scenario - Then what system is doing is absolutely correct and can not be changed

Regards

Ajay M

[Uday_SAP]

Hi,
Could you provide any update on this issue. Because i am facing the same
Regards,

govindu uday

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