Variance to be loaded on stock

Hello SAP Experts,
We are using process order and standard costing. We have executed standard cost and created process order of 10000 units. Price control for FG and SFG is "S" (standard)
We did confirmation (COR6), Template allocation (CPTA), Splitting and actual activity price calculation (KSS2 and KSII) and then process
orderrevaluation (MFN1).
Later we did variance calculation in KKS2 and settled process order in KO88. When are settling, we came to know that, variance is debited to
price difference account and cost of goods mfg is credited
However, we expect that variance (to the extent of closing stock) to be loaded on stock.
Please help. How to settle variances on stock rather than price difference account.
Deepak

Hi Deepak,
Changing OBYC will not make that variance is changing the price of your material. That's one of the reason I think it s not a good practise to do so. You should post variances as PL and then allocate them to inventory and COS depending on wethere the materila is still in stock or has been consumed/sold, which will require the use of actual costing.
You might clarify the business requirement on this one.
For the SFG, if the material is purchased and has a V price control, at GR and IR the variance will be absorbed by inventory and the V price will be updated.
Regards
Ali

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