Last updated on AUGUST 04, 2016
Applies to:PeopleSoft Enterprise SCM Manufacturing - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.
The 'Production Close' SQR report (SFS1100) (navigation: Production Control, Close and Analyze Production, Close Production) is generating incorrect Labor Lot Size Variances when the following conditions are met:
* The Production Order (PID) quantity is > Average Order Qty (AOQ) (defined at the Business Unit Item level),
* Costing Labor Fixed Run Time has been defined for an Operation Sequence on the Routing but no Labor Fixed Run Conversion Rate has been defined, just a Labor Run Conversion Rate.
When checking for Labor Lot Size Variance, the report is incorrectly mixing the Labor Fixed Run Time and the Labor Run Conversion Rate in the same calculation as follows:
(AOQ - assembly quantity issued to the operation) * (Labor Fixed Run Time (in hours) * Labor Run Rate / AOQ)
See the following PeopleBook chapter for the above formula (in this example, there is no setup and post production operation times): PeopleSoft Cost Management > Analyzing Manufacturing > Analyzing Production Variances for Standard Cost Items
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