Hi

Does anyone out there no the difference between the following integration transactions. (Baan ERP Version 5B)

Warehousing Valuation Retroactive Val Adjustment
Warehousing Valuation Value Correction
Production Price Variance
Production Efficiency Variance

I understand the difference between Retroactive Val Adj and the Value Correction. However up until now I have not seen any of the other two transactions being processed in our system.

Any information would be gratefully accepted.

Thanking you in anticipation

Norman

I'm no manufacturing expert, but I believe you only get a price variance if estimated and actual price are different, and a efficiency variance if estimated and actual quantity are different. Both types of variances are posted (if non zero) when you close a production order.

AWondergem

Thanks for your reply. I am aware of how the manufacturing variances price and efficiency are calculated. My problem is that I not sure if Baan is doubling up with transactions when it creates the other two transaction types.

Do you know what the difference is between the four transactions?

Best regards

:)

Hi Norman,

Attached you can find a document with the answer in it for the latest two transactions.

Currently I'm searching for the first two.


Regards,
Jaap Roos

The following formulas are used to calculate price and efficiency variances.
Price variance = (estimated price – actual price) x actual quantity
Efficiency variance = estimated price x (estimated quantity – actual quantity)
Calculation variance = Production results – Price variance – Efficiency variance

Hello,


"Warehousing Valuation Retroactive Val Adjustment"
"Warehousing Valuation Value Correction"


Well, I have noticed that these integrations transactions occurs when you execute the session "whina1516m000 Inventory Variances" (Maybe there are differences between PO and Purchase Invoice or maybe the variations in Production "Add.Calc. Office Variance"). The reason of this process is because you want to assume the differences in the cost of the item.

If you don´t have used the inventory, the system only creates one of the two transactions (I think the 2nd), but if you have used any quantities, the system creates the two integrations.

You can set up the integrations; you can adjust the inventory and the uses of the inventory in differents ledger accounts using these 2 Intregration Transactions.


Please do your test.

Jaap Roos

Thankyou for your reply and very useful information.
I will read the contents of the document and post my observations to this site.

Best
Regards

Find attached a fairly large document that explains the inventory variances. It has been supplied by Baan.

AWondergem

Thankyou for the document it helps to explain some of the questions that I have had. I am in the process of setting up a number of costing related test scenario's to ensure the correct integration mapping is put in place.

Best regards

Norman

All

It is my understanding from doing some substantial testing that the system generates a number of financial variance related transactions.

In particular the Warehouse (Val) Value Correction & Retroactive Val Adj transactions appear to be duplications if you have mapped the following variances.

Production Price Variance
Productiin Efficiency Variance
Production Add Calc Office Variance

I have found that for manufactured items the Warehouse (Val) transactions are not necessary. However if the item is a Purchased item then mapping is required.

It should be borne in mind that are costing system uses FIFO.

I hope this is of help to someone.

Best Regards

Norman