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Cost Run

former_member7439
Participant
0 Kudos

Hi

Any body can list what can be consequences of booking production/loading inventory without releasing Std cost estimate

Help will be appreciated

Accepted Solutions (0)

Answers (3)

Answers (3)

former_member188826
Active Contributor
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You need a current standard cost estimate in the material master in order to calculate the variances in the production order. The target cost which is used for arriving at the variances uses the cost estimate. If there is already an existing current cost estimate, then no worries, the system would pick them up.

Former Member
0 Kudos

Hi,

Always your material is valued with the price maintained in you material master.

And if you have not updated a std cost and you have confirmed the production or loaded inventory system will not valuate your materials and just the quantities are updated with Zero value.

But if you have any other price appearing already in the material master then system valuates your inventory with that price.

Later if you want to release std cost estimate then you will postings for the difference in stock valuations, which will hit your Profit and loss accounts

Regards

Ram

Former Member
0 Kudos

> Hi

> Any body can list what can be consequences of booking

> production/loading inventory without releasing Std

> cost estimate

> Help will be appreciated

<b>It is most obvious. Your inventory will not be valued properly. Inventory would be valued with the old standard cost estimates which may not be realistic.</b>

former_member7439
Participant
0 Kudos

Hello

Any further consequences for posting sales or audit requirement.

Thx

Former Member
0 Kudos

As already mentioned by ShivaKumar since you have not released your cost estimate your MM will be having the wrong cost.

Hence any down the lane applications SD, CO-PA etc will pick up this wrong cost....Though from a system point of view SAP will not stop you from doing anything.