E1: 31A: The Standard Units Used In Variance Recost Miscalculate the Labor Cost Type Amounts for a Change in Order Quantity (R31804) (Doc ID 2961701.1)

Last updated on DECEMBER 15, 2023

Applies to:

Symptoms

When run Variance Accounting R31804 in a cost by work center branch plant and restate cost for over or under completion, over a work order that had a quantity change after order entry, the restate costs uses the original order quantity (F3102 Standard Units by Cost Type) in the recost, not the current order quantity. Variance Accounting with Recost, should not adjust proportionally a second time, misstating the costs. When the quantity is halved, the cost should also be halved, accordingly. Halving the cost again, misstates the cost, creating variances.

Steps:

1. P48013 - Create WO for 500 units, noting frozen Standard Cost.
2. P48013 - Change WO quantity from 500 to be 200. Check the F3102 and it will show that the standard unit is still 500 but the cost has been adjusted, accordingly.
3. Run R31410 or interactively (P3111) attach parts list and (P3112) routing and complete the current quantity in full (Using P31123 Super Backflush)
4. Run Manufacturing Accounting R31802A. Confirm the completed units and completed amount is as expected. No variances.
5. Run Variance Accounting R31804 with the processing option on to restate cost in case of over or under completion. Review The P31022 and note that the costs are reduced from the expected amounts, creating false variances for a full completion.

Cause