Cost of producion item not related to actual costs of items isued to prod

10-11  Source: Network gathering  Views:0 

I have a scenario where a production order for producing a quantity of one of a specific item has been created and released. The Planned quantity of the unique Item used for production in Components Tab is 10, the  Issue method is Manual
In Issue for production screen the quantity recorded is 12, 2 more than the planned
Then the receipt for production has been recorded for 1 item.
Valuation method for all involved items is Moving Average
The system behavior expected by myself was the cost of the produced item was the cost of the component multiplied by 12. However the cost the system calculates is the cost of the component multiplied by 10.
While the Summary of the production order shows Actual Component Cost as multiplied by the Actual Product Cost is just multiplied by 10
Some ideas here?
Many thanks for your answer. I will try to explain the business scenario and why I think the cost should be different . In my explanation the sequence of actions and people performing actions is relevant.
1. Product Engineering clerk determines producing parent item will require 10 components and based of that the BOM is created by Product Engineering clerk with 10.
2. Production planning clerk creates production order based on BOM
3. Production planning clerk releases the order
4. Production clerk (the actual performer) requires 5 components to raw material warehouse (nothing recorded in SAP)
5. Warehouse clerk 1 (at raw material warehouse) gives 5 components to production clerk. Warehouse clerk 1 uses Issue for Production transaction to record 5 components issued to production order
6. Production clerk identifies that for this specific production order 10 components should not be enough so for finishing the order requires 7 components to raw material warehouse (again, nothing recorded in SAP)
7. Warehouse clerk 1 gives 7 components to production clerk. Warehouse clerk 1 uses Issue for Production transaction to record 7 components issued to production order
8. Warehouse clerk 2 (at finish goods warehouse) receives the item produced and uses Receipt from production transaction to record 1 item received
From 4 to 8 actions the interaction is just between production clerk and warehouse clerks. It is not expected warehouse clerks neither production clerk have access to modify production order details. They just record what they do.
At the end of the day the reality is that this specific product just produced costed more because more components were used (think the components can be kilograms of a substance or even pieces that can be with some defects just identified at production). And yes, there is a variance between the original order details and the actual components used. All this is shown at Order Summary Tab.
But if the product is been valued using moving average method why the real components issued to production are not used to calculate the cost of the finished product and rather the "planned" components are been used?
I have tried the option you mention. To modify directly the order but to issues arise from here.
a) Every single time some extra components are required the Production planing clerk has to updated the order?
b) If we do so no variance is reported and no action can be taken to avoid this variance.
Your thoughts?
Related articles
  • Cost of producion item not related to actual costs of items isued to prod 10-11

    I have a scenario where a production order for producing a quantity of one of a specific item has been created and released. The Planned quantity of the unique Item used for production in Components Tab is 10, the  Issue method is Manual In Issue for

  • CO-PC Cost components are not assigned when actual cost was posted 11-30

    Hi Expert, I estimate material cost by Tcode CK11N, the result is cost components were assigned to plan cost. It's okay. But, I have a problem when posting actual cost. After actual cost was posted by confirming backflush, I run Tcode KKBC_PKO to che

  • Delivery cost is not equal to actual cost in sales order 10-11

    I met a strange phenomenon is the sale cost in SO is not equal to the cost in delivery order. I order 3 PCS material and each cost is 43.87 and the total cost is 131.61. However when I finished PGI the FI document shows the cost is 131.62. the diff i

  • Cost element 7000218 is not assigned to a cost component in CostCompStruct 10-11

    Dear All, How to change the standard price in MR21 for materials with Price Determination Control 3 ( header level V & 3) (Split level S & 3) In MR21, when I am updating the price for initial stock uploading. It throws me a error Cost element 7000

  • Cost element and Line item reports show different actual costs 10-11

    Hi PS experts, My client has an issue pertaining to actual cost reports. The cost element report shows actual costs $42,000 for one WBS and when I double click to see details the value it shows is $2100. Even when I checked line item report for this

  • Cost estimate (CK11N)is not picking the overhead cost for some of the mat 10-11

    Hi all, we are facing a problem. The overhead key is defined. the calculation base is defined in the cost sheet. But the overhead cost is not picking  for some of the materials Bad Material 5019-0581 via CK11n. As you can see in the itemization, only

  • Items not shown  in Periodic Cost Update form 10-11

    Hi, I'm working with Periodic Average Cost, for a Colombia project. Instance is still in The issue I have is that when I try to select an item to update periodic cost, the item is not retrieve from LOV. In the form the corresponding LE / C

  • Cleared items not appearing When  we click cleared items in T.code FBL3N 10-11

    Hi all,         We have prepared one ABAP program, to clear all open items for a particular GL account, company code, period, fiscalyear,          When we run this program, the open items are clearing but not appearing in cleared items,          Can

  • Open item not found while doing process open items - F-32 10-11

    The customer account shows 2 open items ( 1 Invoice and 1 Payment documents) during account clearing with f-32 t.code, only payment document is appearing. whether reason code maintained in invoice document any way afftects in account clearing process

  • Open item not in f-03 process open item list 10-11

    hi, in line item, the item is showing open but when want to clear in F-03, it does not show there. what could be the reason? thanksHi FBS1 transactions cannot be cleared from F-03, but can only be reversed from F.81 regards Parag BhargavaRead other 4

  • Actual cost not correctly displayed for material consumed in an order 11-30

    Hi All, I have an issue which is as follows: In a service order, I have consumed 13 materials for which I am able to view the list of goods movement with its amount and plant and storage location. For each goods movement system has generated material

  • Actual cost  is not  seen in the  variance calculation KKS2 10-11

    Hi I   did  variance calculation of  a Production order  ( after  telco)  .  Its a co - product.   The  target cost , actual cost and  allocated cost   fields are present  after  execution.   Now  the  actual cost  field is   blank  and  so   the  va

  • Actual Cost is not updating in Production Order & WIP 10-11

    Dear All, I have issue in production order and Work in Process not getting Target Actual cost in costing view CO03 & KKAY. Is there any settings or transaction missed out? Please guide me how to sovle the issue. Thanks & Regards, Venkat.Dear, Plea

  • Actual cost are not posted 10-11

    Hi all,          I am  doing Purchase Order against project for service,assigning WBS Element in it, and doing service entry sheet against that P.O. But I am not getting plan & actual cost reflected in Project builder & reports. Is there any setti

  • Table where i see actual cost line item for order (KRMI) 11-30

    Dear. I need to know the table of every single document number of a cost element that I see in the actual cost line item for orders using transaction KRMI. Thanks Moderator: Please, search SDNHi Refer the field Object No (OBJNR) in COEP.. In your cas

  • Actual cost of material in COPA 10-11

    Hi Team, We have implemented PP, CO & COPA  our client has the requirement to see the actual cost of material in COPA as per their requirement we designed the KE30 report as product wise profitability report in that report we used the record types B(

  • Actual cost is coming zero in service order 10-11

    Hi experts I am newer in CO.i can not recognise that "Actual cost is coming zero in service order".Please let me know that sollution thanks in advance sachinHave the cost data been archived? If not, please check configurations and whether there

  • How can I crosscheck Total Planned/Actual Cost in MCI3 (S061) correct? 11-30

    Hi Masters, I want to crosscheck "Total Planned Cost" and "total Actual Cost" in MCI3(S061) - Location and Planning analysis is correct or not.' In my current system I am trying to compare the Orders in IW39 and MCI3 but costs are not

  • Error when accessing /bw_document/MasterData/... (Item not found) 11-30

    Hello, I'm trying to index the BI documents (Master Data) repository with TREX. As fas as I know the BI documents are now stored in KM (=portal). I found /bw_document/MasterData in KM but when I trigger the indexing of this repository he stops after

  • Not displaying Actual cost Line Items for Order 10-11

    Hi Gurus, Recently we did patching from SPC6 to SPC8. After patching we noticed that could not able to see displaying Actual cost Line Items for Order from work order. System is not throughing error message when I double cline on line item at Plan/Ac