Hi Guys,
Could you help me to findout how system calculate completion and add. cal. office variance in the Shop Floor Processing ???

We create item C - std cost 17932.5158
from item A - std cost 100
item B - std cost 150

In BOM : to create 250 kg item C , we need 100 kg item A and 150 kg item B

When we issue materials for productions (session ticst0101s000) ,
estimated materials for item A - 102.5641 , and we issue 105
estimated material for item B - 153.8462 and we issue 160

and we receipt material C - 250 kg
The integration result like this :

Material Issue item A : 1,470,000 (105 * 14,000) --- OK
Material Issue item B : 16,000 (160 * 100) --- OK

Material receipt item C : 4,483,128.9500 (250 * 17932.5158) --- OK

Completions : 30,769.2300 --- how to calculate it ??
Add calc. office variance : 4,452,359.7200 --- how to calculate it ??
-1,455,230.7700 --- how to calculate it ??

Please help us, if you have experience to calculate this value.

THanks and regards,
Rini

The Variance is usually the difference in the amount of material issued vs the estimated amount.
Item A Actual issue = 105 Estimate called for 102.5641.
Item B Actual Issue = 160 Estimate called for 153.8462.
Also do you have a surchage that you are adding to you labor.

Hi Tom,

We don't have surcharges for all items. Also all operations rate equal zeroes.
We just calculate only material cost.

Referring to your explanations :
item A : (105 - 102.5641) * 14,000 = 34,102.60 ) Total 49,327.22
item B : (160 - 153.8462) * 100 = 15,224.62 )

In our system . the result of add. calc. office variance is :
4,452,359.7200 (= receipt amt - completions) & -1,455,230.7700 (???)

Also what is formula of completions ??? We get the result is 30,769.2300

Please let me know if you have any other idea for it.

Thanks and regards,
Rini

Hi Tom,

Do you know how system do completion calculation ???

For add calc. variance, I already understand how to calculate it.


Regards,
Rini

Financial Results
BaanERP calculates the following results:
Price variance*: the difference between estimated and actual price of a
production order for materials or hours.

- Price variance = (estimated price – actual price) × actual quantity.

* A variance is a measure of the difference between the estimated (planned or budgeted) costs and the actual costs. You do not have to calculate both price and efficiency variances.

Efficiency variance: the difference between actual and planned production
order quantities for materials or hours.

- Efficiency variance = (estimated quantity – actual quantity) × estimated
price.

Calculation variance: the variance in production results that is not
accounted for by price variance and efficiency variance. It can be caused by
actions such as altering the fixed transfer price (FTP) of end items, or
differences between estimated and actual surcharges. It is used to clear the
WIP.
- Calculation variance = production results - price variance - efficiency
variance.

Hi Rini,

Did you find out how the system calculates the Completion values? I am also stuck up in the same place.