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How to offset the variance from production order

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417

Dear all,

There is a huge variance(unexpectedly) of 60K euro while settling the production order, The reason is because of Wrong GR and GR reversal postings. Can anyone suggest how to offset this 60K Euro in FI postings , What is the posting needs to be done.

Thanks in Advance.

Accepted Solutions (0)

Answers (2)

Answers (2)

priyadarshan_behera
Participant
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Hi Prashanth,

In this scenario, you can reverse the settlement of the production Order. The production team can reverse the confirmation for that order.

The ideal way was before rectifying the MAP, production reversal could have happened.

priyadarshan_behera
Participant
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Hi Prashanth,

The standard process in case of any variance is to settle the Production order only. It will create the corresponding accounting entries post-settlement.

Prod. Variance - Dr/Cr

COGM - Dr/Cr

Thanks

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Hi priyadharshan,

Thanks for your reply, Already the production order is settled which causes a posting as below

6C011000 PC Sttlmnt_FG Cr. 60k

6D011000 Mfg Cost Variance Dr.60k

6D011000 Mfg Cost Variance Cr. 60K

51021000 COGS_V_Material Dr. 60k .

But my user is asking these variance of 60 K should be present in Price difference account , Can you please help me how to clarify him as I am not an Controlling expert.

And one more concern , In business already for a MAP material wrong GR has happened and GR reversals also posted , there they got the variance in production order while doing the settlement and the same amount was present in Price difference account ,

So now his concern is why during that time PRD got the variance but not now?

Can you please explain.

Thanks in advance.