B Calculations for Variances

This appendix contains these topics:

• Section B.1, "Standard Costs,"

• Section B.2, "Current Costs,"

• Section B.3, "Planned Costs,"

• Section B.4, "Actual Costs,"

• Section B.5, "Completed/Scrapped Costs."

Variance Inquiry displays costs from the Production Cost File (F3102). How the system calculates each cost component is explained here.

B.1 Standard Costs

Cost Component	Description
A1	Sum of rolled costs minus sum of net added costs = component material cost. Component material cost multiplied by work order quantity. This cost type is created under the following conditions: When Work Order Processing is run When the Work Order Parts List and Routing copy the standard Bill of Material and Routing. When Work Order quantity is changed and recalculation is requested
All other cost components	Net added cost x work order quantity These costs are created under the following conditions: When you run Order Processing When the Parts List Revisions program copies the bill of material When the Work Order Routing program copies the routings When you generate journal entries for work order activity

B.2 Current Costs

Cost Component	Description
A1	The sum of total rolled costs for each item in the current bill of material. The cost of components is based on the quantity before scrap is added. This value is created under the following conditions: When you generate a parts list with Process Work Orders When you generate journal entries for work order activity When Work Order quantity is changed and recalculation is requested
A2	The sum of the total rolled costs for each item that is scrapped. This value is created under the following conditions: When you generate a parts list with Process Work Orders When Parts List Revisions copies the bill of material
B1-C4	Calculated in the same manner as the Simulate Cost Rollup using the hours from the current routing. This value is created under the following conditions: When you generate a parts list with Process Work Orders When Work Order Routing copies the routing
All other cost components	Net added cost x work order quantity These costs are created under the following conditions: When you generate work order routing with Process Work Orders When Work Order Routing copies the routing

B.3 Planned Costs

Planned costs are updated to the 3102 file with Manufacturing Accounting (P31802) is run in Proof or Final mode.

Cost Component	Description
A1	The sum of total rolled costs for each item in the current parts list.
A2	The sum of the total rolled costs for each item that is scrapped.
B1-C4	Calculated in the same manner as the Simulate Cost Rollup using the hours from the work order routing.
All other cost components	The net added cost x work order quantity. This value is created when you generate journal entries for work order activity.

B.4 Actual Costs

You must run Manufacturing Accounting in Final mode to update these values.

Cost Component	Description
A1	Generated based on actual work order issues. This value is created when you generate journal entries for work order activity.
A2	The cost of the components actually scrapped using the Component Scrap form. See Section 17.5, "Recording Component Scrap."
B1-C4	Calculated in the same manner as Simulate Cost Rollup using the hours from the work order routing. This value is created when you generate journal entries for work order activity.
All other cost components	The net added cost x work order quantity This value is created when you generate journal entries for work order activity.

B.5 Completed/Scrapped Costs

You must run Manufacturing Accounting in Final mode to update these values.

Cost Component	Description
A1	Sum of rolled costs - sum of net added costs = component material cost. This amount includes completed and scrapped quantities.
All other cost components	Net added cost x work order quantity. This value is created when you generate journal entries for work order activity.