Dear Experts,
We revalue our FG stocks on 31/12 by using CK40N. The new year costing is released on 02/01 or 03/01 using CK40N. In this case since we have standard cost estimate released on 31/12 we block the system to be used. So production orders are delayed entry for 2 days and QC cannot perform reading on the orders. The system is blocked to avoid using the old standard cost estimate and getting price variance on confirmation of orders.
Please let me know that how can we avoid system blockage in the following circumstances:
1. If we release standard cost estimate in advance then what will happen with the stock revaluation which is done on 31/12?
2. How does the system takes care of stock revaluation?
3. Which cost is used by production orders and how can we avoid variances?
4. I think we should use MR21 to update standard cost on 01/01 and after closing we should use CK40N to release the standard cost estimate.
5. If we use MR21 to update standard how will the variance be calculated on the production order?
Kinldy let me know what companies do on year start on 01/01? Do they block the system or they give the system to enter production orders and QC?
Waiting for the answer.
Best regards,
Abid Hussain