Large SODIFF / Calculation Variance on Shop Order Closure – Clarification on Costing Logic

Accumulated Shop Order Cost

• Accumulated Cost: 2,682,779.78
• Operation Scrap (OPFEED-SCP): 112,416.11

Remaining Cost after Scrap

• 2,570,363.67

Received Value (OOREC)

• 1,627,376.20

Calculation Variance

• 942,987.47

The variance exactly matches:

2,570,363.67 - 1,627,376.20 = 942,987.47

Transaction Analysis

The transaction history shows:

OOREC

• Quantity Received: 50,371 pcs
• Total Value: 1,627,376.20
• Approximate Unit Cost: 31.36

OPFEED-SCP

• Quantity Scrapped: 2,203 pcs
• Total Value: 112,416.11
• Approximate Unit Cost: 51.03

When reviewing the remaining shop order cost after scrap:

2,570,363.67 / 50,371 = 51.03 per unit

while the receipt appears to be valued at:

1,627,376.20 / 50,371 = 31.36 per unit

This suggests that the accumulated cost remaining on the shop order after scrap differs significantly from the valuation used for the inventory receipt. The parent part of the shop order is weighted average.

So, if I understand the weighted average costing logic correctly, OOREC has taken the current inventory value of the part to calculate the total cost at receipt. That made the difference generating the huge amount of SODIFF which is 942,987.47. Is my understanding wrong here?

For shop orders to not consider the actual inventory value in this scenario, can I adjust costing parameter: USE_START_DATE_FOR_SO_VAR?

Or are there any posting required to avoid such amount SODIFF?

Appreciate your input on this.

This is in APP10