One of our customers use Production Module. They would like to avoid variances on production order.
Can we setup Bill of Materials prices( both Parent & Components) based on Item Cost (by Warehouse). I know we can set prices using different price lists or last purchase/evaluated price lists. The costing method for all Items is Standard. Since valuation method is standard we can create price lists but customer does not want to do that as they have many warehouses. Any advise would be appreciated.
Production Variances calculates only when you have difference in Moved and Planned Qty.
If you have not taken or issued Qty as per you planned then SAP Calculates Variance and hence Product Cost.
Because SAP Always calculates Finished Goods Cost Based on Item Cost of Issued Raw Material So if your valuation Method is FIFO it calculates as per FIFO as for Moving also..........