If I have set up a Release production order for an item and subsequent to that I change the routing for that item (thus the standard cost). When finishing the production order, how is the capacity labour variance calculated? Does it use the new routing on the item or does it use the routing originally placed on the work order when comparing the actual? Thanks in Advance, Rob
Hi Robert Are you changing the routing “attached” to the item, i.e. routing x1001 to y9056, or are you altering the settings against the routing, work centre/machine centre etc?
I am changing the routing attached to the item. For example, I would change the run time in the routing from 1.5 hours to 3 hours.
I think a finished PO no longer has the standard costs in the statistics (F9) form => no variances ? Or are you referening to the GL entries for capacity variance (overhead) accounts (standard vs actual) ? IF so, I think it uses the attached routing.
Hi Robert. I believe that the routing is re-read at all alterations of the Production Order, which means when you complete the production orders the associated costs of the routing are re-read and variances calcualted upon these entries. I think we need to know a bit more about where youare seeing the variances and what you want to see.