What is Dynamic Usage Variance in ML?

Hi Experts,
What is Dynamic Usage Variance in ML? How does it effect the Periodic Unit Price calculated at the end of the period?
Regards
Srikanth Munnaluri

Hi,
Distribution of usage variances specially comes in scenarios like Physical Inventory checkup and its adjustments to derive the actual costing.
Physical Inventory documents generally posted to adjust the physical inventory and the inventory as per sap. These total adjustments have to be made based on the quantity consumed on each order. Ofcourse this scenario is project specific.
This ensures auto consideration at the time of determination of periodic unit rate in actual cost run. These adjustments will revaluate the consumption.
This dynamic usage variance is applicable both for the inventory and for activity rates.
U have to maintain the following configuration-
Controlling>Product Cost Controlling>Actual Costing-->Activate Distribution of Consumption Differences
Once these settings are in place, u have to run either some or all of the following--
CKMDUVACT - Distribution of Activity Differences
CKMDUVMAT - Distribution of Inventory Differences
CKMDUVREC - Enter Actual Activity Quantities
if u want view the differences before executing above transactions, u can view by using
CKMDUVSHOW - Display Inventory and Activity Differences
Regards
Sudhakar Reddy
Edited by: Sudhakar Reddy K.V. on Sep 14, 2009 2:11 PM

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hi Jyotirmoy,
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