Hi,
Our client has a requirement where, they want to update all the activity rates.
They are using Product Costing.
Background:
1. Every activity there is a a separate costing.
2. Production department will give budgeted hours
3. Previously, activity rates were copied from previous year to current year. This is leading to a huge difference between Planned Activity leading to Planned Cost and the Actual Activity leading to Actual Cost. Due to this difference, the management is not able to explore the reason. They have identified that the Planned data is not correct. Hence they want to update the new planned data, so that there is minimum deviation between planned and actual report. Also, there are downtime hours which is again leading to excess hours required to manufacture the product again leading to increased cost.
4. Backflushing not used. How the consumption has to be updated to which cost center?
I want to know, how do we proceed for this process.
Any activity required from Master Data?
What activities needs to be done in Product Costing/Cost Center Accounting?
What activities needs to be done from PP/MM module?
Please advice.