cancel
Showing results for 
Search instead for 
Did you mean: 

Huge price variance in Material Ledger

Former Member
0 Kudos

Dear Gurus,

In our case the standard cost of one Finished goods is released with the price of Rs.10 but later on the cost of one of the Raw material is changed to Rs.1200. Without releasing the standard cost (as it cannot be released for more than once in a period) of the Finished Goods, we have performed Mock month end closing for Material Ledger.

Now due to the difference in raw material cost huge variance (Rs.12000-10) is lying as unallocated variance.

Please advise the way out as to how to correct the same at the earliest.

Regards

Rajya Lakshmi

Accepted Solutions (0)

Answers (2)

Answers (2)

Adimallaiah
Contributor
0 Kudos

Hi,

Try with t-code CKMCCC.

BR,

ADI

Former Member
0 Kudos

Hi,

I can try CKMCCC if the cost of FG and RM both are incorrect. But in our case the cost of FG is correct and the RM Cost is incorrect. Hence if I do the revaluation the inventory value will be wrong.

Please advise

Regards

Rajya Lakshmi

Former Member
0 Kudos

hi

update the correct price in MR21 or MR22 and proceed your material ledger closing.

Former Member
0 Kudos

Hi,

Thanks for the reply but in case of MR21 and MR22 also the variance will be collected on price difference account only and needs to be allocated back to the Finished Goods.

Against which the PRD should be knocked off is the question and how to pass the JV.

Please Advise.

Regards

Rajya Lakshmi