Difference in Planned cost and Standard cost

[Former Member]

Hi All,

In every production order that we are creating there is a difference of planned cost & Standard cost is coming. This difference is minimum when my costing lot size in material master is equal to the Production order qty.

Pls. let me know what could be the reason.

Regards,

Aashish

[Former Member]

What are the costing variants for stadard cost estimate and planned cost estimate?

[Former Member]

Hi Ratan,

We are using only one costing variant as PPC1 ( Standard Cost Estimate)

[Former Member]

In the order type you define the costing varint for the planned cost calculation.

Costing varaint contains valuation varinat in which the costing rules are defined.

[Former Member]

Hi Ratan,

We have already defined the Costing Variant in Order Type. But still there is a variance coming between the Planned & Standard cost.

whether this difference is normal.

Regards,

Aashish

[Former Member]

When did you run the last standard cost run.

there should be a difference in your activity prices, and/or in your components moving average price since your last standard cost estimate.

[Former Member]

Std cost estimate is run periodically which will update the material masters costs.

For any production order when you run the costing it picks the costs from the material masters , here is the pricing type is standard , then the cost is not changed till the next standard cost estimate run,

Where as if the pricing type is moving average price, then this price gets updated with every GR. (All the externally procured material have this)

So may be your raw material price is different for planned costs compared to the one in stadard cost estimate.

Reward if the solution is fne with you.

[Former Member]

Hi Ratan,

There is no GR in between as we are just changing the Production order Qty. and calculating the cost, the variance between Planned & Standard cost varies propotionately. We have checked that it is not because of the Raw material cost or the activity cost.

Can there be any other reason.

[Former Member]

Did you compare the Itemization in both the Standard cost estimate and production order cost analaysis,

[Former Member]

I have compared the itemization of both the cost.

The Planned cost is changing rightly as per the production qty. Only the Standard cost which gets changed as per the Production qty. seems to be not correct. There might be some reason of this variation. If you want i will send you the screenshot.

[Former Member]

Please send it to ratanvahi@rediffmail.com

[Former Member]

Hi Ratan, Can you check your mail, i have send you the file.