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1. Re: Special variances in Process Manufacturing
746522 Jul 18, 2012 5:04 AM (in response to user969063)Hi Sanjib,
Explain whet are these variance  Manufacturing Yield Variance, usage, filling and batch
Regards
SeenuYarasi 
2. Re: Special variances in Process Manufacturing
user969063 Aug 15, 2012 3:19 PM (in response to user969063)Srini
Sorry for my late reply. I was trying to get my arms around these variances and finally have time to update this thread.
Here is the background.
We have a liquid batch for paint intermediate (Master Rex). Intermediate product is yielded to the Filling batch wherein the liquid is filled in drums or containers to produce the final SKU product. There is a separate costing and production formula for the liquid batch and a separate costing and production formula for filling batch. Here are the details on the variances.
1. What is MANUFACTURING YIELD VARIANCE?
1st, Mrex Theoretical Gallons Available is calculated as  Actual Output / Formula weight per gallon.
In the above, Formula weight per gallon is Total Costing Ingredient Quantity / Yield Product Costing Quantity.
2nd, Manufacturing Yield Calculation is calculated as Planned Quantity  Theoretical Gallons Available.
In the above formula, Planned Quantity = Production Formula Planned Quantity.
Manufacturing Yield Variance = Manufacturing Yield Calculation * Product Standard Cost (Mrex).
2. What is USAGE VARIANCE?
= Sum ((Actual Ingredient 1 Quantity  Planned Ingredient 1 Quantity) * Ingredient 1 Standard Cost) + ........)
3. What is FILLING YIELD CALCULATION?
1st, Filling Theoretical Gallons Available is calculated as Mrex Theoretical Gallons Available. In the current domestic system, the filling batch is automatically spawned from Mrex batch once Mrex batch is completed. Additionally, there are automatic system checks to ensure the Mrex quantity in the spawned Filling batch is same as the parent Mrex batch.
2nd, Filling Yield Calculation is calculated as Filling Theoretical Gallons Available  Actual Gallons.
In the above formula, Actual Gallons = Actual Yield * Filling Formula Mrex Quantity.
Filling Yield Variance = Filling Yield Calculation * Product Standard Cost (Mrex).
4. What is METHODS VARIANCE?
I made a 1000 gallon batch, here is the process assuming a standard cost of $1.00 for ingredients A, B and C and product X.
Cost of making 1000 gallons of product X: 1000 Gallons * $1.00 = $1000
Material cost incurred for using Ingredient A: 50 Kgs * $1.00 = $50
Material cost incurred for using Ingredient B: 100 Kgs * $1.00 = $100
Material cost incurred for using Ingredient C: 800 Kgs * $1.00 = $800
Resource charges incurred for producing X: $30
Methods Variance = $1000 – ($50 + $100 + $800 + $30) = $20.
Thanks in advance,
Sanjib 
3. Re: Special variances in Process Manufacturing
user355059 raj_ntt data india Sep 17, 2012 3:29 AM (in response to user969063)Hi
When the planned quantity is deviated from actual quantitiy then it leads to a Variances, which could be a usage/yeild variance and ultimately it affects the Cost.
If you are using the Stnd Cost then you will have Cost variance which can be adjusted through Expense allocation function available in OPM costing.
I believe there won't be any Batch Variaces in R12 unlike in 11i. ( to overcome this Oracle suggested some patches)
Rgds
Raj