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Group valuation in intercompany scenario

Kishore05
Associate
Associate
0 Kudos

Hi Team,

I have a question regarding production variances settlement in case of Intercompany transactions.

Scenario: Co code A is manufacturing product and transferring this product to Co code B.

Std cost of Co Code A  (Mat cost 100 + Conv cost 20) = Std Cost 120 and prod var is 10

Assume Co Code A manufactured only 1 unit and transferred to Co code B

Std cost of Co Code B (Std cost of Co code A 120 + Conv Cost 5) = Std cost 125 and prod var is 5

ML settlement :  When CKMLCP is executed , client requirement is that prod var of Co code A 10 should be allocated to Co Code B.

Please let me know if there are possible solutions for above requirement.

 

 

 

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sanilbhandari
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi

You could use Group Valuation. In the legal view, the production variances are settled to Cost, whereas in Group View, they would be settled to the group valuation for the product as a whole.

Thanks & regards

Sanil Bhandari

Kishore05
Associate
Associate
0 Kudos
I know that CKMLCP needs to be executed for all company codes. But then will it not be a data load issue . Please note that my client is on ECC Classic GL