Re: Use of Costing Variant Actual (PPP3) in Product Cost Collector

Dear Kamal,

My doubt is about PPP3 only. How it works at Confirmation-MFBF (back flushing for BOM Components)?

Accounting Entry at MFBF: BOM (Finished Goods i.e. FG1) has only one Raw Material i.e. RM1

1. Dr. FG Inventory(FG1)                      1000

2. Cr. Cost of Goods Manufacturing       1000

3. Dr. Raw Material Consumption          1050

4. Cr. Raw Material Inventory(RM1)       1050

Now this is very clear to all that line items 3 and 4 are consumption entry (of RM1) and that will be posted at any cost at as MAP of the material (in case of Indicator V) irrespective of what standard price is calculated at costing run or irrespective of anything you have in PPP3, because if PPP3 has "Planned Price1' as valuation variant; system will still pick MAP instead of 'Planned Price1'.

So please let me know, how it  (PPP3) works? and where can see the difference.

Regards

Ruksana