Hi,
My query is relating to system behavior while doing GR and variance calculation in product cost by period (repetitive Manufacturing). I have done enough search in forum and could not find answers which clarify me,
Lets say there are 2 production version(PR) available for a FG product 0001 and 0002 having cost of $110 and $120 respectively. For the same product standard cost estimate price $100. Under this circumstances while doing GR for PR 0001 and 0002, which price system will pick up to post the GR. To the best of my knowledge, it only picks up the std. cost estimate price i.e $100. Is that correct? If it is so, then what is the purpose of having prices separately for PR 0001 & 0002. Is it being used for any other purposes?
And my other query, since system is going to pick up the same price for both the versions, how the system will calculate the variance for both theses versions.If am not wrong in product cost by period, system will calculate the variance based on target cost. But how the system arrives at the calculation for variance.
Thanks
Karthik