Costing effect if not doing the consumption of components against Prod ord

Hello Friends,
I have one doubt. Suppose i have mentioned 10 componets in the bill of material of finished material which all are relevant to costing. Now i created one production order against that finished material. Now while doing the production order confirmation, out of 10 materials i have done consumption of 8 components only (as per BOM suggested),so will there be difference in the target price and the actual price for that order.And if difference is there than while doing the order settlement will it hit the Profit and loss account.
Thanks and Regards,
Jitendra Chauhan

Hi,
The difference in the consumptions will show as a variance. These variances will be settled in to the material account or sales order. Compared to the STD cost, your material cost will be less. This will effect on your internal reporting.
Regards,
V. Suresh

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