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Variance effect on Stock of FG

kandati_subramanyam
Participant
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Dear All,

In our client,we have implemented Standard Price for FG and SFG Materials and as you all know that in the case of SP ,the variance will be posted to PRD Account.

But the client requirement is that the variance is to be loaded on the stock (to the extent of stock availability @ the month end) and remain variance to be posted to Variance GL account,

We have proposed Moving Average price (MAP) in the place of Standard price (SP) to meet the requirement and tested the in the quality by changing the price of FG and SFG Materials from SP to MAP.

At the time of settlement of process orders ,we find that wherever single order is created for the FG /SFG material,system loading the variance on the stock and remaining is posted to Price GL account  as per the expectation,but in the cases of multiple orders of FG and SFG Materials ,system loading the variance on the stcock,which is not as per expectation and loading huge amount  of variance on the stock available resulting in MAP of FG material is increased enormously.

Please through some light on this and help me that what could be the reason for loading of huge variance on the stock in the case of multiple process orders of FG.

Regards

Su   

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Answers (1)

Answers (1)

rajneesh_saxena
Active Contributor
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Hi Subram

Hope by now you might have reached to the conclusion. If not then I will say that this is the main reason owing to which SAP recommends 'S' for in house materials i.e. FG and SFGs.

At the time of settlement of multiple orders system behaves in the same manner as in the case of single order. Means it checks stock availability for each order individually at the time of settlement and it posts the amount accordingly, it never checks the orders quantity collectively with the stock availability.

For your requirement ML is the option given by SAP.

Regards

Rajneesh Saxena