Standard cost estimate run

[Former Member]

Hi All

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.

Regards

Rakesh

[former_member581212 · Accepted solution]

hi,

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...

Regards

Priyanka.P

[Former Member · Accepted solution]

But what about effect on inventory of SF goods due to change in std price for the next period.

Regards

Rakesh

[former_member581212 · Accepted solution]

hi,

There will be all effect on the valuation only...It'll be based on the std cost estimate price for the current period...and will be same till you re-release the next std cost restimate run...

Hope it helps..

Regards

Priyanka.P

[Former Member · Accepted solution]

So any treatment to nullify the effect?

[former_member581212 · Accepted solution]

hi,

Std cost estimation is used to have the proper effect...To nullify it ....donot use Standard price contol..use Moving average price as price control...

Regards

Priyanka.P