Hello,
Could you please explain to me when the M120 and M137 postings are triggered?
Thank you,
Lina
Hello,
Could you please explain to me when the M120 and M137 postings are triggered?
Thank you,
Lina
Best answer by Adam Bereda
Hi, Lina,
Both these postings are examples of variances of shop order costs.
These variances are differences between calculated and actual costs of shop order.
Calculation of manufactured item cost is quite complex topic - too complex to discuss it on a forum like that. In principle, when shop order is created it has assigned BOM structure with estimated costs of materials and routing plan with estimated costs of machinery, and you are reporting actual consumption of time and materials - in case there are differences between calculations and actual report - variances are triggered.
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