What is the effect of settlement on the refurbishment order?

[Former Member]

Dear All Experts,

I need to know the effect of settlement on the refurbishment order; I already know that the settlement of order cost should be run with reference to the material itself

The material value not affected in me scenario after the settlement

Kindly find below the stock value during the refurbishment process and give me advice

The stock value before processing

Condition Price Quantity Stock value

C1 3000 USD 9 27 000 USD

C2 2500 USD 20 50 000 UDS

C3 200 USD 10 2000 USD

Stock value 79 000 USD

Moving average price 2025,64 USD

Then create the refurbishment order to material with c3 to be refurbished and entered the stock as c2

The stock value during processing

Condition Price Quantity Stock value

C1 3000 USD 9 27 000 USD

C2 2500 USD 21 52 500 UDS

C3 200 USD 9 1800 USD

Stock value 81 300 USD

Moving average price 2084 USD

The effective cost of the order is 322, 79 USD

THE STOCK VALUE AFTER THE SETTLEMENT IS STILL THE SAME AS THE VALUE STOCK DURING THE PROCESSING

Could you please give me any ideas why the settlement in my case not affects the stock value?

Waiting for your replays

Yasser Allam

[former_member187991]

hi

i think you have processed the material ie you have given the material back to stores with C2 value .

since C2 stock has increased with decrease in C1 stock .that means your process is completed

the difference of the amount ie the labour cost ,extra material used to the material cost will be posted in offsetting entry .kindly check

regards

thyagarajan

[Former Member]

Dear Thyagarajan,

Yes the diffrence is posted in offsetting account, my question is how to transfer this amount to affect the material value

or what is the next step in this process even in CO or MM

Regards,

Yasser Allam

[former_member187991]

hi

iam not able to understand ,as per your post the stock value of C2 has increased and C3 has decreased and also moving avg price .

already the cost has transferred to material that is why the stock value is different .

or can you elaborate more

regards

thyagarajan

[Former Member]

Dear Thyagarajan,

I appreachiate your concern,

let me explain again

during the order processing the stock value of C2 has been increased by the standard price which is 2500 for peace now the total stock value of C2 is 52 500 USD and C3 decreased by 200 USD the value of the C3 pease

now the actual cost of refurbishmnet order is 322 "200 material c3 + 122 labour cost".

according to the course PLM300 the stock value of C2 should be 50 322 USD after settlement and this is not happened in my case it is still 52 500 USD

this is the case when the material will affected with the settlemt

[former_member187991]

hi

i think after settlement you have to run the cost estimate for your material (CK11N)and update the price(CK24) .kindly consult the CO person on this

regards

thyagarajan