Improve Your Variance Analysis by Planning Assembly Scrap

Improve Your Variance Analysis by Planning Assembly Scrap

Published: 15/January/2007

Reading time: 15 mins

Find out how planned assembly scrap in material master views affects cost estimates in Product Cost Planning. Planning and posting assembly scrap removes the value of scrap from the total variance. Only the difference between planned and actual scrap posts as a scrap variance. This improves variance analysis by reducing the variance by the value…

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