Standard cost estimate run
When i run SCE for the mat with std cost, how will the change in price be treated? Will this be also accounted in price diff GL? or any other steps need to be followed.
Priyanka Paltanwale replied
1. When you mark the standard cost estimate, the system writes the result of the cost estimate to the costing view of the material master record as the future standard price. You can use this price to valuate a material component in the cost estimate.
2. When you release the standard cost estimate, the system writes the result of the standard cost estimate to the material master record as the standard price. This price is then active for Financial Accounting and is used to valuate the material until the next time a standard cost estimate is released.
From this period onward, all transactions involving products produced in-house are valuated in Logistics using the standard price (that is, the result of the standard cost estimate). When a material with standard price control is transferred to the warehouse, for example, inventories of this material are valuated with the standard price as determined by the standard cost estimate. This provisional valuation can be corrected later by settling the actual costs incurred during the period.
Hope it helps...