Variance Category calculation
I`m facing problem in understanding the calculation of different variance category. Below is the scenario:
Split valuation is activated and below are the valuation type:
1. In house production:
Valuation type 1 and valuation type 2
Valuation type 3 and valuation type 4
Now at the time of std cost release system picks price from BOM for material components but in BOM we never specify valuation type for components.
BOM is as below:
Mat.1 (RM) 10 QTY
Mat.2 (RM) 5 QTY
Mat.3 (By product) -1 qty
Mat.4 (SFG) 2 Qty
So when I create Production order after releasing it system automatically picks the GI value(some PP config is maintain).
After this I enter order confirmation and I enter material components with valuation type but movement type is picked up automatically. Below is the data:
Material Qty Valuation type Movement type
FG 10 Valuation type 1 101
RM 1 100 Valuation type 3 261
RM 2 50 Valuation type 3 261
By product 10 Valuation type 1 261
SFg 20 Valuation type 2 531
Now when I calculate Variance below data are updated in categories:
Resource usage variance:
It consist data for By product and SFG under Actual cost and 0 under Target cost.
1. Why system is considering data for only SFG and By product combination?
2. Why standard cost is 0 under Target cost for this combination.??
Remaining input variance:
It consist data for RM1 & RM2 under Actual cost and (Std cost*10) under Target cost.
Why system is comparing whole standard cost under Target cost with Cost of(RM1 & RM2) under Actual cost.???