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Toolbox sap-acctHi Keyiyer,
Amazing!
Still you could not refer one company which is following to value raw material purchased at
standard price (though according to you there are a lot of companies in your knowledge
who are following this concept).
Anyway, please understand that variances are calculated basically for FGs. For procuring
raw materials I don't see management putting an effort to implement controls to costs an monitor
performance except negotiating with vendors for base price.
Now let me very clear. If you can give one example (real life, and not in your imaginations) who are following the
method of maintaining raw materials at standard price, please post the same in the forum.
Otherwise stop arguing this non-sense in this esteemed forum, where we visit to learn many things from every one including some very intelligent question, but not reading some rubbish.
Regards,
ARI
| | | ---------------Original Message---------------
From: keyiyer
Sent: Tuesday, November 30, 2010 11:51 PM
Subject: Moving Average Prices update in Material Master for data migration
Hi Ari and All,
I appreciate your and all other responses !!! I was expecting a technical suggestion but also getting lot of suggestions on accounting treatments of inventory !!
I will like to inform that there are things called Variances in standard costing system and these variances are " inventorised " over stock turn over period of the materials.
Setting standards helps the management to control costs and monitor performances of various functions, and variances have to be appropriately responded by the respective manager. Standards are set for a defined period , one year and measure the performance for that year against the standard. Thats how it works even for deciding individual's monetary incentive (Variable pay you may call ) !!!!
I will not request anyone to check with the companies that follow standard costing system across the world and their process (including India, in some companies, and even for cost and stat audit you can value goods in standard and report variances), as this is not my purpose of posting the query here in IT Tool box.
In any case, I thank you all from my heart for the time spent on this topic and your valuable suggestions.
I will continue to post here my queries, and expect your support in all times,
Cheers and thanks,
Keyiyer. |
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| |  ARI
SAP Accounting Helper
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