Variance Calculation

10/17/2019 Variance Calculation - SAP Help Portal
Table of Contents  
Variance Calculation 
Cost Object Controlling (CO-PC-OBJ) 

Send feedback
(/viewer/6fe2dad9dab7486fb4469d1355
US/56204b53c08a7d77e10000000a441
Aa
Cost Object Controlling
 (/viewer/6fe2dad9dab7486fb4469d1355 Use
US/5f6b4453baeda548e10000000a423 You can calculate variances for the following objects:
Product Cost by Period
 Product cost collectors (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/b8a839531d37e447e10000000a4414 US/0bac39531d37e447e10000000a441470.html)
Product Cost Collector Manufacturing orders

 (/viewer/6fe2dad9dab7486fb4469d1355
US/0bac39531d37e447e10000000a441 Cost object hierarchies (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/e3c8d8530439414de10000000a174cb4.html)
Cost Object Hierarchy
Variance calculation provides you with detailed cost information on products or manufacturing orders.
US/e3c8d8530439414de10000000a174
Production Process
The variance calculation function:
US/67b31453e0023047e10000000a445 Shows the variance between target costs and control costs (the control costs can be the net
Controlling Level actual costs, for example)
US/ae95fb52b63aee2de10000000a423 Determines the difference between the actual costs debited to the object and the credit from
goods receipts (total variance)
Special Requirements in Joint Productio
(/viewer/6fe2dad9dab7486fb4469d1355 Valuates the unplanned scrap quantities with target costs to determine the scrap variances
US/8bef4453a10ae344e10000000a423 (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Product Cost by Period: Scenario US/d7efd45398184308e10000000a174cb4.html)
Determines production variances and planning variances for informational purposes
US/7cd316539a149a06e10000000a441
Overhead Shows the causes of the variances and assigns the variances to different variance categories
depending on the cause
The system updates the variances by object for each cost element, or for each cost element and
origin.
Variance calculation provides you with the information you need before you can take steps to improve
https://help.sap.com/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-US/c2de385313e57d77e10000000a441470.html 1/18
your cost situation.
Table of Contents   
Cost Object Controlling (CO-PC-OBJ) Integration 

US/56204b53c08a7d77e10000000a441
You can use the Schedule Manager to assist you in performing the period-end closing activities. For Aa
more information, refer to the following sections:
 (/viewer/6fe2dad9dab7486fb4469d1355 Scheduler (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/5f6b4453baeda548e10000000a423 US/f8e41452614f7938e10000000a445394.html)

Monitor (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
 (/viewer/6fe2dad9dab7486fb4469d1355
US/5826c4530b29b44ce10000000a174cb4.html)
US/b8a839531d37e447e10000000a4414
Flow De nition (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Product Cost Collector
US/5b26c4530b29b44ce10000000a174cb4.html)
US/0bac39531d37e447e10000000a441
If you use the Schedule Manager with the ow de nition, you can use the multilevel worklist to
reprocess the faulty objects. For more information, see the following section:
US/e3c8d8530439414de10000000a174 Multilevel Worklist (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Production Process US/79572d535defe747e10000000a441470.html)
US/67b31453e0023047e10000000a445 You can transfer the total variances calculated in the variance calculation process to Pro tability
Controlling Level Analysis (CO-PA) when you settle.
US/ae95fb52b63aee2de10000000a423 In variance calculation, you can use user-de ned error management to indirectly in uence the
program ow. For more information, see User-De ned Error Management in Cost Object Controlling
(/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/9baa39531d37e447e10000000a441470.html) and the explanations below.
US/8bef4453a10ae344e10000000a423
Product Cost by Period: Scenario

(/viewer/6fe2dad9dab7486fb4469d1355 Prerequisites
US/7cd316539a149a06e10000000a441
Overhead You can calculate variances separately in each period or cumulatively. The default rule in the order
type determines whether the variances are calculated cumulatively or periodically.
All manufacturing orders or product cost collectors for which you want to calculate variances by
period in the Product Cost by Period component must be settled by period. The settlement rule for
the order must contain a distribution rule that speci es settlement type PER (periodic). For product
cost collectors, use default rule STR (with strategy for tracing factor determination). For
manufacturing orders, use default rule PP2 (Production Material Periodic Settlement). You de ne the
Table of Contents   default rule in Customizing for Product Cost Controlling under De ne Default Values for Order Types.

Cost Object Controlling (CO-PC-OBJ) You calculate cumulative variances for all orders for which you want to analyze costs by lot. The

(/viewer/6fe2dad9dab7486fb4469d1355 settlement rule for the order must contain a distribution rule that speci es settlement type FUL (full
US/56204b53c08a7d77e10000000a441
Aa
settlement). Go into Customizing for Product Cost Controlling under Cost Object
Cost Object Controlling Controlling  Product Cost by Order  Manufacturing Orders  De ne Cost-Accounting-Relevant
 (/viewer/6fe2dad9dab7486fb4469d1355 Default Values for Order Types and Plants and enter default rule PP1 (Production Material Full
Settlement). For production orders and process orders, this is the default rule in the standard system.
US/5f6b4453baeda548e10000000a423
Product Cost by Period Make the necessary settings in Customizing for Product Cost by Order or Product Cost by Period.

US/b8a839531d37e447e10000000a4414 You must make sure that the following requirements are met:
 (/viewer/6fe2dad9dab7486fb4469d1355 An itemization exists for the cost estimate used to calculate the target costs.
US/0bac39531d37e447e10000000a441
The material components listed in the BOM of the cost estimate used to calculate the target
Cost Object Hierarchy costs are assigned to the operations in which they are consumed.
US/e3c8d8530439414de10000000a174 Otherwise it is not possible to correctly report the variances and scrap when operations are
con rmed.
Production Process
The object for which the variances are calculated contains a valid variance key.
US/67b31453e0023047e10000000a445
Controlling Level
In the Product Cost by Order component, the order has the status DLV (delivered) or TECO
(technically completed).
US/ae95fb52b63aee2de10000000a423
During the variance calculation process, the system also reads the orders for which the status
Special Requirements in Joint Productio DLV or TECO has been active. If the status was withdrawn, any variances and scrap variances
(/viewer/6fe2dad9dab7486fb4469d1355 are canceled.
US/8bef4453a10ae344e10000000a423
The Material Origin indicator in the costing view of the material master record is selected for all
cost-critical material components, or you are using origin groups.
US/7cd316539a149a06e10000000a441 The system can then tell which materials caused which variances under which primary cost
Overhead element.
If you have already created material master records in which the Material Origin indicator is not
selected, you can use report RKHKMAT0 to select the indicator. To do this, choose Tools  ABAP
Workbench  Development  ABAP Editor .
 Note 
Table of Contents  
Note that if the Material Origin indicator is selected or if you are using origin groups, the
Cost Object Controlling (CO-PC-OBJ) increased data volume can reduce system performance during the period-end closing 
activities. It is therefore recommended that you use these functions only for materials that
have a strong in uence on your costs. Aa
US/56204b53c08a7d77e10000000a441
Cost Object Controlling Be sure to select the Material Origin indicator before you create the standard cost estimate
 (/viewer/6fe2dad9dab7486fb4469d1355 for the material.
US/5f6b4453baeda548e10000000a423
The manufacturing order or product cost collector for which you want to calculate variances has
a variance key.

US/b8a839531d37e447e10000000a4414 You can specify a separate default variance key in Customizing for each plant. The system then
Product Cost Collector transfers the variance key into the master records of the materials which you then create. If you
 (/viewer/6fe2dad9dab7486fb4469d1355 then create a manufacturing order or product cost collector for the material, the system
US/0bac39531d37e447e10000000a441 transfers the variance key into the master record of the manufacturing order or product cost
collector.
If you want to calculate the total variance, the following requirements must be met:
US/e3c8d8530439414de10000000a174
Production Process
In make-to-stock production, the standard cost estimate for the material must always be
released.
US/67b31453e0023047e10000000a445
Controlling Level The standard cost estimate for the material must meet the following requirements:
(/viewer/6fe2dad9dab7486fb4469d1355 For product cost collectors with the settlement type PER (periodic), the standard cost
estimate must be valid on the last day of the posting period.
(/viewer/6fe2dad9dab7486fb4469d1355 For manufacturing orders (production orders and process orders) with settlement type
US/8bef4453a10ae344e10000000a423 FUL (full settlement), the standard cost estimate must be valid at the time of the last
Product Cost by Period: Scenario delivery.
In sales-order-related production, the cost estimate with which the standard price was calculated is
US/7cd316539a149a06e10000000a441
used to determine the total variance (see also: Standard Price with Valuated Sales Order Stocks
Overhead
US/dbb51453e0023047e10000000a44538d.html)).
To determine which standard cost estimate is active in the period, look at the costing view of the
material's master record.
You can use the following entries to identify the cost estimate on which the current standard price is
based:
Period
Fiscal year
Aa
US/56204b53c08a7d77e10000000a441 Valuation variant
Costing version
US/5f6b4453baeda548e10000000a423 Before you can calculate the variances, you must carry out the following steps in Customizing for
Product Cost by Period Product Cost Controlling in Cost Object Controlling under Product Cost by Period or Product Cost
 (/viewer/6fe2dad9dab7486fb4469d1355 by Order Period-End Closing  Variance Calculation :
US/b8a839531d37e447e10000000a4414
De ne Variance Keys
 (/viewer/6fe2dad9dab7486fb4469d1355 If you want to valuate the unplanned scrap during variance calculation, set the Scrap indicator.
US/0bac39531d37e447e10000000a441
De ne Variance Keys for Plants
De ne Variance Variants
US/e3c8d8530439414de10000000a174
Production Process Set the Scrap variances indicator if you want to see the scrap variances and the actual costs
 (/viewer/6fe2dad9dab7486fb4469d1355 that correspond to the scrap variances in the target cost version to which that variance variant is
US/67b31453e0023047e10000000a445 assigned.
Controlling Level De ne Valuation Variant for WIP and Scrap (optional)

US/ae95fb52b63aee2de10000000a423 In the valuation variant for WIP and scrap you specify whether you want to calculate the target
costs for the valuation of scrap variances on the basis of:
(/viewer/6fe2dad9dab7486fb4469d1355 A preliminary cost estimate for the product cost collector or for the manufacturing order
US/8bef4453a10ae344e10000000a423
Product Cost by Period: Scenario An alternative material cost estimate
(/viewer/6fe2dad9dab7486fb4469d1355 The currently valid standard cost estimate for the material
US/7cd316539a149a06e10000000a441
Overhead De ne Target Cost Versions
Assign a variance variant to the target cost version. De ne how you want the target costs and
the control costs to be calculated.
If you want to see input quantity variances and input price variances, set the Material Originindicator
in the costing view of the material master record.
You must also check the following:
(/viewer/6fe2dad9dab7486fb4469d1355 Be sure that the reporting point structure or milestone structure that you are using in
US/56204b53c08a7d77e10000000a441 production matches the reporting point structure or milestone structure used to calculate the
Aa
target costs.
 (/viewer/6fe2dad9dab7486fb4469d1355 For example, valuating the unplanned scrap on the basis of the standard cost estimate for the
US/5f6b4453baeda548e10000000a423 material may cause problems if the standard cost estimate is based on a different reporting
Product Cost by Period point structure than that of the run schedule header.

(/viewer/6fe2dad9dab7486fb4469d1355 For scrap variances, the task list type, task list group, and group counter of the routing on which
US/b8a839531d37e447e10000000a4414 the calculation of target costs for the valuation of unplanned scrap is based must match the task
Product Cost Collector list type, task list group, and group counter of the routing for which actual data were entered.
 (/viewer/6fe2dad9dab7486fb4469d1355 Note also the capabilities of user-de ned error management
US/0bac39531d37e447e10000000a441 (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Cost Object Hierarchy US/9baa39531d37e447e10000000a441470.html).
Remember that if you change the milestone structure in order-related production and process
US/e3c8d8530439414de10000000a174
manufacturing, you can no longer calculate scrap variances, or the calculated values will be
Production Process inaccurate. Note also the capabilities of user-de ned error management.
US/67b31453e0023047e10000000a445 In repetitive manufacturing, when you change the reporting point structure you can use exible
Controlling Level
reporting points to convert the reporting point back ushes and update the preliminary cost
estimate for the product cost collector.
In repetitive manufacturing, SAP recommends the following:
Create a separate product cost collector for each production version.
US/8bef4453a10ae344e10000000a423
Create a preliminary cost estimate for the product cost collector
Product Cost by Period: Scenario (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
(/viewer/6fe2dad9dab7486fb4469d1355 US/c7a4b9537cceb44ce10000000a174cb4.html).
US/7cd316539a149a06e10000000a441
Overhead
Have the activity quantities that are to be con rmed defaulted on the basis of the routing
used for the preliminary cost estimate.
Value the work in process and unplanned scrap on the basis of the preliminary cost
estimate for the product cost collector.
If the reporting point structure is changed, use exible reporting points

(/viewer/6fe2dad9dab7486fb4469d13552824f2/6 18 11/en-
Table of Contents   US/11c9d8530439414de10000000a174cb4.html) and update the preliminary cost 
estimate (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Cost Object Controlling (CO-PC-OBJ) US/14c9d8530439414de10000000a174cb4.html). 
(/viewer/6fe2dad9dab7486fb4469d1355 Note also the capabilities of user-de ned error management. Aa
US/56204b53c08a7d77e10000000a441
Make sure that the cost estimate used to calculate the target costs has an itemization. For this
reason you may need to create the following:
US/5f6b4453baeda548e10000000a423 The standard cost estimate for the material with an itemization
The modi ed standard cost estimate for the material with an itemization
US/b8a839531d37e447e10000000a4414 In sales-order-related production with a valuated sales order stock, the sales order cost
estimate with an itemization
US/0bac39531d37e447e10000000a441  Note
Cost Object Hierarchy If you want to valuate the unplanned scrap on the basis of a preliminary cost estimate for
 (/viewer/6fe2dad9dab7486fb4469d1355 the production order or process order, the system generates an itemization dynamically
US/e3c8d8530439414de10000000a174 when it calculates the variances.
Production Process
This reduces system performance.
US/67b31453e0023047e10000000a445
Controlling Level  Note
(/viewer/6fe2dad9dab7486fb4469d1355 You can calculate the variances on the basis of a unit cost estimate (such as a sales order
cost estimate with a unit cost estimate, or a preliminary cost estimate for the production
Special Requirements in Joint Productio order without quantity structure).
US/8bef4453a10ae344e10000000a423 For the scrap variances to be calculated, the target costs must be based on a cost estimate
Product Cost by Period: Scenario with the costing method product costing (such as a sales order cost estimate with a unit
cost estimate, or a preliminary cost estimate for the production order with quantity
US/7cd316539a149a06e10000000a441 structure).
Overhead
You should also check the de nition of the controlling area in Customizing for General Controlling:
The currency type of the controlling area (under Basic data) controls which currency is allowed as the
controlling area currency and whether this currency can differ from the currency of the company
codes assigned to that controlling area. You can use the All currencies indicator (under Control
indicators) to specify whether the values are updated only in the controlling area currency or also in
the transaction currency and the object currency.
If the company code currency is not the same as the controlling area currency, go into Customizing for
Cost Object Controlling (CO-PC-OBJ) Product Cost Planning under Selected Functions in Material Costing and carry out the step Activate

(/viewer/6fe2dad9dab7486fb4469d1355 Cost Component Split in Controlling Area Currency before you create the cost estimate on which
Aa
US/56204b53c08a7d77e10000000a441 target cost calculation is based. The system can only determine variances if you have performed this
Cost Object Controlling step.

US/5f6b4453baeda548e10000000a423  Note
Product Cost by Period If you are using a valuated sales order stock and want to valuate on the basis of the standard cost
 (/viewer/6fe2dad9dab7486fb4469d1355 estimate, the cost estimate for valuation is determined on the basis of a strategy sequence.
US/b8a839531d37e447e10000000a4414
If you are using a valuated sales order stock and calculate the target costs using a sales order cost
 (/viewer/6fe2dad9dab7486fb4469d1355 estimate, valuation is made using only the operational currency.
US/0bac39531d37e447e10000000a441
Cost Object Hierarchy Take organizational steps to ensure that WIP is always calculated before the variances.
US/e3c8d8530439414de10000000a174 Manufacturing orders and product cost collectors are only included in variance calculation when the
Production Process
status of the order is not one of the following:
LKD (Locked)
US/67b31453e0023047e10000000a445
Controlling Level CLSD (Closed)
US/ae95fb52b63aee2de10000000a423 DLFL (Deletion ag)
Special Requirements in Joint Productio DLT (Deleted)

US/8bef4453a10ae344e10000000a423
 Note
(/viewer/6fe2dad9dab7486fb4469d1355 You can signi cantly improve the performance of variance calculation by setting the status DLFL
US/7cd316539a149a06e10000000a441 for orders that meet all of the following conditions:
Overhead
The order is delivered or technically completed
Variances have been calculated for the order
You do not anticipate any further follow-up costs for the order
You can remove the deletion ag after it has been set for example if follow-up costs are incurred
You can remove the deletion ag after it has been set, for example if follow up costs are incurred
Table of Contents   for the order. The deletion indicator, however, cannot be removed. 

You cannot calculate variances for periods for which a period lock for transaction KVAR (variance
(/viewer/6fe2dad9dab7486fb4469d1355 calculation) was set. This applies to both update runs and test runs.
US/56204b53c08a7d77e10000000a441
Aa
Features
US/5f6b4453baeda548e10000000a423 The variance calculation function always compares the control costs with the target costs. The system
Product Cost by Period calculates the target costs and the control costs depending on the time period (periodic or
 (/viewer/6fe2dad9dab7486fb4469d1355 cumulative) and on the type of variance calculation.
US/b8a839531d37e447e10000000a4414
With all variance types with reference base actual (that is, in the standard system with target cost
version 0, 1, 3) the control costs are the actual costs less the work in process and scrap variances. To
enable the scrap variances to be deducted from the actual costs, the Scrap Variances indicator must
US/0bac39531d37e447e10000000a441
be selected in the variance variant.
 (/viewer/6fe2dad9dab7486fb4469d1355 To be able to supply information under the original cost elements, when the system calculates the
US/e3c8d8530439414de10000000a174 variances it compares the itemization of the cost estimate used to calculate the target costs with the
Production Process line items in the actuals or with the itemization of the cost estimate used to calculate the control costs.
US/67b31453e0023047e10000000a445 You can calculate variances in:
Controlling Level
US/ae95fb52b63aee2de10000000a423 For product cost collectors
For the cost object nodes in a cost object hierarchy
US/8bef4453a10ae344e10000000a423
Product Cost by Order for manufacturing orders
(/viewer/6fe2dad9dab7486fb4469d1355 In Product Cost by Period you determine the variances for each period separately.
US/7cd316539a149a06e10000000a441
Overhead In Product Cost by Order you determine the cumulative variance.
Periodic Variance Calculation

The periodic variance calculation process compares the target costs of the period with the control
costs of the period.
The variances of the period are calculated in the following formula:
Table of Contents   Actual Cost Debit – Allocated Actual Costs (Actual Cost Credit for Goods Receipt) – Target Costs = 
Variances + Scrap Variances + Work in Process
(/viewer/6fe2dad9dab7486fb4469d1355 The order must have the settlement type PER (periodic).
Aa
US/56204b53c08a7d77e10000000a441
With all variance types with reference base actual (that is, in the standard system with target cost
version 0, 1, 3) the control costs are the actual costs less the work in process and scrap variances. To
enable the scrap variances to be deducted from the actual costs, the Scrap Variances indicator must
US/5f6b4453baeda548e10000000a423
be selected in the variance variant.
 (/viewer/6fe2dad9dab7486fb4469d1355 You cannot calculate planning variances between the standard cost estimate for the material and the
US/b8a839531d37e447e10000000a4414 preliminary cost estimate for the product cost collector.

Special Requirements with Cost Object Hierarchies
US/0bac39531d37e447e10000000a441
There are two different ways of processing cost object hierarchies:
Cost object hierarchy with distribution
US/e3c8d8530439414de10000000a174
Production Process The costs posted to the cost object nodes are distributed to the lowest nodes of the hierarchy
 (/viewer/6fe2dad9dab7486fb4469d1355 (that is, to the single objects assigned to the cost object hierarchy, such as product cost
US/67b31453e0023047e10000000a445 collectors and manufacturing orders).
Controlling Level Cost object hierarchy without distribution

US/ae95fb52b63aee2de10000000a423 The costs assigned to the cost object nodes are settled from the cost object hierarchy. There are
two types of settlement: settlement by means of material account determination and settlement
by means of manual account assignment. SAP recommends settlement by means of material
account determination.
US/8bef4453a10ae344e10000000a423
Product Cost by Period: Scenario See also: Settlement Rules for Cost Object Hierarchies
(/viewer/6fe2dad9dab7486fb4469d1355 (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/7cd316539a149a06e10000000a441 US/f3c8d8530439414de10000000a174cb4.html)
Overhead
If you are using cost object hierarchies in Product Cost by Period, you always calculate the variances
on the cost object hierarchy, regardless of whether you are using distribution or not. Even if you are
using actual cost distribution and want to calculate the variances at the level of the assigned objects,
you start variance calculation for the orders assigned to the cost object hierarchy (such as product
cost collectors) by means of variance calculation for the cost object hierarchy. Orders assigned to a
cost object hierarchy are not selected during variance calculation for the orders or product cost
collectors.
Variance Calculation for Cost Object Hierarchies with Distribution
(/viewer/6fe2dad9dab7486fb4469d1355 For information on variance calculation with cost object hierarchies with distribution, refer to the
section Period-End Closing for Cost Object Hierarchies with Distribution
Aa
US/56204b53c08a7d77e10000000a441
US/15ccd8530439414de10000000a174cb4.html).
US/5f6b4453baeda548e10000000a423
Variance Calculation for Cost Object Hierarchies Without Distribution
 (/viewer/6fe2dad9dab7486fb4469d1355 When you calculate the variances for a cost object hierarchy without rst distributing the actual costs,
US/b8a839531d37e447e10000000a4414 the system dynamically summarizes the costs in order to total the costs for all cost object nodes in the
hierarchy.
The variance is reported at the highest node in the hierarchy for which costs were posted under a cost
US/0bac39531d37e447e10000000a441
element.
When the variances are calculated on the basis of cost object nodes, the system compares the target
US/e3c8d8530439414de10000000a174
costs with the control costs for each node of the hierarchy when it calculates the variances. The
Production Process system performs the following actions dynamically when it calculates the variances for a cost object
 (/viewer/6fe2dad9dab7486fb4469d1355 hierarchy:
US/67b31453e0023047e10000000a445
Controlling Level It calculates and summarizes target costs at the order level.
The target costs are calculated by converting the standard costs or the planned costs of the
materials manufactured to the quantity of materials delivered to inventory, in dependency on
the target cost version. The target costs are then summarized to the highest hierarchy node
(/viewer/6fe2dad9dab7486fb4469d1355 (cost object node plus the orders assigned to the cost object hierarchy) at which a cost element
US/8bef4453a10ae344e10000000a423
or cost element/origin group or cost element/origin was posted in the actuals.
It calculates and rolls up the transfer costs to each hierarchy node.
US/7cd316539a149a06e10000000a441
Transfer costs are the control costs and remaining variances rolled upwards in the cost object
Overhead
hierarchy that were passed dynamically during variance calculation for a cost object hierarchy
from lower-level nodes to the highest nodes at which a cost element or cost element/origin
group or cost element/origin was posted in the actuals.
 Note
Table of Contents   The remaining variances that are rolled up are those in which variances were not assigned 
to any variance category (such as in dependency on the de nition of the variance variant).
The remaining variances that arise because no target costs could be calculated are not
(/viewer/6fe2dad9dab7486fb4469d1355 rolled up. Aa
US/56204b53c08a7d77e10000000a441

 (/viewer/6fe2dad9dab7486fb4469d1355  Example
US/5f6b4453baeda548e10000000a423 Actual costs in the amount of USD 100 are recorded under cost element 400000 for
product cost collector number 700000 assigned to a cost object hierarchy. Actual costs in
the amount of USD 10,000 are shown on the higher-level cost object node PG-BULB-COLOR

(/viewer/6fe2dad9dab7486fb4469d1355 under cost element 400000. The cost object node PG-BULB-COLOR is the highest
US/b8a839531d37e447e10000000a4414
hierarchy node at which actual costs of cost element 400000 were recorded.
 (/viewer/6fe2dad9dab7486fb4469d1355 Variances are calculated for the cost object hierarchy without distribution.
US/0bac39531d37e447e10000000a441
To make the example as simple as possible, we will assume that target costs, work in
Cost Object Hierarchy process, and scrap variances are all zero.
US/e3c8d8530439414de10000000a174 The following values are shown in the detailed screen of the totals list for product cost
Production Process collector 700000:

Actual costs (cost element 400000): USD 100
US/67b31453e0023047e10000000a445
Controlling Level Control costs: USD 100
(/viewer/6fe2dad9dab7486fb4469d1355 Allocated actual costs (cost element 895000): USD 20,000

Special Requirements in Joint Productio Transfer costs (cost element 400000): USD 100
Variance (cost element 895000): USD 20,000
US/8bef4453a10ae344e10000000a423
Product Cost by Period: Scenario The variance of cost element 400000 is not shown on this hierarchy node because the
(/viewer/6fe2dad9dab7486fb4469d1355 variances for this cost element are calculated on the basis of the data summarized on cost
US/7cd316539a149a06e10000000a441 object node PG-BULB-COLOR.
Overhead
The following values are shown in the detailed screen of the totals list for cost object node
PG-BULB-COLOR:
Actual costs (cost element 400000, posted directly to the cost object node): USD
10,000
Control costs: USD 10,000
Allocated actual costs: USD 0

Transfer costs (cost element 400000): USD 100
Variance (cost element 400000): USD 10,100
Aa
US/56204b53c08a7d77e10000000a441 While the transfer costs in the lower-level hierarchy node are not included in variance
Cost Object Controlling calculation, in the higher-level hierarchy node the transfer costs together with the control
 (/viewer/6fe2dad9dab7486fb4469d1355 costs are compared with the target costs.
US/5f6b4453baeda548e10000000a423
The control costs are calculated for each cost object node or hierarchy node.
 With all variance types with reference base actual (that is, in the standard system with target
US/b8a839531d37e447e10000000a4414 cost version 0, 1, 3) the control costs are the actual costs less the work in process and scrap
Product Cost Collector variances. To enable the scrap variances to be deducted from the actual costs, the Scrap
 (/viewer/6fe2dad9dab7486fb4469d1355 Variances indicator must be selected in the variance variant.
US/0bac39531d37e447e10000000a441
Work in process and scrap are also rolled up and deducted from the actual costs to calculate the
Cost Object Hierarchy control costs.
US/e3c8d8530439414de10000000a174 You can create a hierarchy with characteristics in Pro tability Analysis that corresponds to the
Production Process structure of the cost object hierarchy in Product Cost Controlling, and settle the variances to
 (/viewer/6fe2dad9dab7486fb4469d1355 Pro tability Analysis by variance category.
US/67b31453e0023047e10000000a445
Controlling Level For information on cost object hierarchies without actual cost distribution, refer to the section Period-
End Closing for Cost Object Hierarchies Without Distribution
US/ae95fb52b63aee2de10000000a423 (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
US/18ccd8530439414de10000000a174cb4.html).
For information on settling cost object hierarchies with and without actual cost distribution, refer to
US/8bef4453a10ae344e10000000a423
the section Settling Cost Object Hierarchies: Scenario
(/viewer/6fe2dad9dab7486fb4469d1355 US/73c9d8530439414de10000000a174cb4.html).
US/7cd316539a149a06e10000000a441
Overhead Cumulative Variance Calculation
Cumulative variance calculation compares the target costs with the cumulative control costs.
Cumulative variance calculation is only possible if the following conditions are met:
The order has the settlement type FUL (full settlement).
Table of Contents   The production order or process order has the status DLV (delivered) or TECO (technically 
completed).
The control costs are calculated as follows:
Aa
US/56204b53c08a7d77e10000000a441
For the calculation of the total variance, the control costs are equal to the actual costs less the
Cost Object Controlling scrap variances.
For the calculation of the production variance, the control costs are equal to the actual costs less
US/5f6b4453baeda548e10000000a423
the scrap variances.
 For the calculation of the production variance of the period, the control costs are equal to the
US/b8a839531d37e447e10000000a4414 actual costs less the scrap variances.
Product Cost Collector For the calculation of the planning variance, the control costs are equal to the planned costs of
the manufacturing order.
US/0bac39531d37e447e10000000a441
Cost Object Hierarchy Types of Variance Calculation
US/e3c8d8530439414de10000000a174 You can calculate the following variances:
Production Process
 (/viewer/6fe2dad9dab7486fb4469d1355 Planning variances
US/67b31453e0023047e10000000a445
Production variances
Controlling Level
Total variance
Assignment of Variances to Variance Categories
The system compares the control costs against the target costs and assigns the resulting variances to
US/8bef4453a10ae344e10000000a423
variance categories. The variances are assigned to variance categories in the following sequence:
(/viewer/6fe2dad9dab7486fb4469d1355 1. Input price variance
US/7cd316539a149a06e10000000a441
Overhead 2. Resource-usage variance
3. Input quantity variance
4. Remaining input variance
5. Mixed-price variance
6. Output price variance

Table of Contents   7. Lot size variance 
Cost Object Controlling (CO-PC-OBJ) 8. Remaining variance 

US/56204b53c08a7d77e10000000a441
Periodic Variance Calculation Aa
Cost Object Controlling For product cost collectors and cost object hierarchies, you always calculate variances by period. You
 (/viewer/6fe2dad9dab7486fb4469d1355 can also calculate variances by period for manufacturing orders. The default rule in the order type of
US/5f6b4453baeda548e10000000a423 the manufacturing orders must be PP2 (Production Material Periodic Settlement).

 To analyze the results of variance calculation, you normally use the Product Cost Controlling
Information System. First analyze the aggregated data, for example using a summarization hierarchy.
US/b8a839531d37e447e10000000a4414
To identify orders that caused unusually high variances, use the exception rules of the information
Product Cost Collector system.If you want to have detailed information on an order that caused unusually high variances,
return to the variance calculation function and recalculate the variances for the order as a test run. Set
US/0bac39531d37e447e10000000a441 the Detail List indicator when you do this. The test run is then effectively used as a simulation mode.
 (/viewer/6fe2dad9dab7486fb4469d1355 Note that with periodic settlement of manufacturing orders WIP must be calculated at target costs. In
US/e3c8d8530439414de10000000a174 this case, the task list type, task list group, and group counter of the routing used in the cost estimate
Production Process that calculated the target costs for the valuation of work in process must match the task list type, task
 (/viewer/6fe2dad9dab7486fb4469d1355 list group, and group counter of the routing speci ed in the manufacturing order. Milestone structures
US/67b31453e0023047e10000000a445 cannot be changed in the routing.
Controlling Level
Using the Detail List
In the processing options, you specify whether you want to:
(/viewer/6fe2dad9dab7486fb4469d1355 Execute variance calculation for the orders in the background

US/8bef4453a10ae344e10000000a423
Product Cost by Period: Scenario Execute variance calculation for the orders as a test run
(/viewer/6fe2dad9dab7486fb4469d1355 Generate a detail list for each order

US/7cd316539a149a06e10000000a441
Overhead If you select the Detail List option, you rst receive a list of all processed objects with the relevant
values. From there you can go to detailed screens such as the explanation of the target costs or the
explanation of the variances.
You normally execute variance calculation in the form of collective processing in the background. For
performance reasons, SAP recommends that you do not select the Detail List indicator in collective
processing. Even if the Detail List indicator is not set, the variances are still broken down into variance
Table of Contents   categories. These variance categories can be viewed in the information system.

Cost Object Controlling (CO-PC-OBJ) To analyze the results of variance calculation, you normally use the Product Cost Controlling

(/viewer/6fe2dad9dab7486fb4469d1355 Information System. First analyze the aggregated data, for example using a summarization hierarchy.
US/56204b53c08a7d77e10000000a441 To identify orders that caused unusually high variances, use the exception rules of the information
Aa
system. If you want to have detailed information on an order that caused unusually high variances,
 (/viewer/6fe2dad9dab7486fb4469d1355 return to the variance calculation function and recalculate the variances for the order as a test run. Set
the Detail List indicator when you do this. The test run is then effectively used as a simulation mode.
US/5f6b4453baeda548e10000000a423
Product Cost by Period Update of Data by Currency

US/b8a839531d37e447e10000000a4414 Variances are always calculated in the currency of the controlling area. If you have speci ed that
update can also take place in the transaction currency and in the object currency for the controlling
 (/viewer/6fe2dad9dab7486fb4469d1355 area, the system also calculates variances in the object currency. In this case the values are
transferred to CO-PA in both currencies during settlement. In CO-PA you specify the currencies you
US/0bac39531d37e447e10000000a441
want to use in the Pro tability Analysis component.
Message Logs
US/e3c8d8530439414de10000000a174
Production Process Look at the messages under Goto  Message Log .

US/67b31453e0023047e10000000a445 You can also:
Controlling Level
(/viewer/6fe2dad9dab7486fb4469d1355 Assign particular messages issued during variance calculation to areas of responsibility
This allows you to sort the log by area of responsibility.
(/viewer/6fe2dad9dab7486fb4469d1355 De ne the meaning of particular messages (such as de ning them as information, warning, or
US/8bef4453a10ae344e10000000a423 error messages)
This enables you to control whether the message appears in the log and whether the order
(/viewer/6fe2dad9dab7486fb4469d1355 number appears in the worklist when the message is issued.
US/7cd316539a149a06e10000000a441
Overhead Improving Performance
You can use parallel processing to reduce the runtime of the variance calculation process. This applies
both to variance calculation for orders (product cost collectors and manufacturing orders) and to
variance calculation for cost object hierarchies.
If you perform variance calculation outside the Schedule Manager, enter a server group for
Table of Contents   background processing. 
Cost Object Controlling (CO-PC-OBJ) If you perform variance calculation using the Schedule Manager, set the Parallel processing 
indicator in the selection screen of the program when you create the job variant. An entry eld
US/56204b53c08a7d77e10000000a441
then appears in which you enter the server group. Aa
Cost Object Controlling Schedule Manager: Multilevel Worklist
US/5f6b4453baeda548e10000000a423 You can view and edit the objects with errors that were processed with the individual functions. You
Product Cost by Period use the multilevel worklist for this purpose. The multilevel worklist enables you to edit faulty objects of
 (/viewer/6fe2dad9dab7486fb4469d1355 an individual processing step (that is, a single function) or of an entire processing step sequence.
US/b8a839531d37e447e10000000a4414
A prerequisite for using the multilevel worklist is that you are using the Schedule Manager in
Product Cost Collector conjunction with a ow de nition.
US/0bac39531d37e447e10000000a441 See Integration in this section.
 (/viewer/6fe2dad9dab7486fb4469d1355 User-De ned Error Management
US/e3c8d8530439414de10000000a174
Production Process You can in uence the messages output in the log of variance calculation by using user-de ned error
 (/viewer/6fe2dad9dab7486fb4469d1355 management.
US/67b31453e0023047e10000000a445
See Integration in this section.
Controlling Level
Variances in the Information System
Special Requirements in Joint Productio If the variances were calculated in a target cost version relevant to settlement, the order receives the
(/viewer/6fe2dad9dab7486fb4469d1355 status VCAL (Variances calculated). You can include this status in the de nition of the status pro le in
US/8bef4453a10ae344e10000000a423 Customizing for the Product Cost Controlling Information System.
(/viewer/6fe2dad9dab7486fb4469d1355 You can view the data calculated in variance calculation in the Product Cost Controlling Information
US/7cd316539a149a06e10000000a441 System for each manufacturing order or product cost collector.
Overhead
More Information
For information on the deletion ag, deletion indicator, and period lock, refer to the following sections:
Reorganization of Manufacturing Orders (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-

US/77cad8530439414de10000000a174cb4.html)
Table of Contents   Reorganization of Product Cost Collectors 

Cost Object Controlling (CO-PC-OBJ) US/5e26c4530b29b44ce10000000a174cb4.html)

For information on the special features of variance calculation and scrap calculation with a valuated
Aa
US/56204b53c08a7d77e10000000a441
sales order stock, refer to the following section:
Variances with a Valuated Sales Order Stock
US/5f6b4453baeda548e10000000a423
Product Cost by Period US/a4714253f860d873e10000000a4450e5.html)

US/b8a839531d37e447e10000000a4414 For information on target cost versions, refer to the IMG for Product Cost by Period and Product Cost
by Order under Period-End Closing  Variances .
For information on the information system, see the document Product Cost Controlling Information
US/0bac39531d37e447e10000000a441
System.
For information on additional performance improvements in CO-PC, see the section Performance in
US/e3c8d8530439414de10000000a174
Product Cost Controlling (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-
Production Process US/77a839531d37e447e10000000a441470.html).
US/67b31453e0023047e10000000a445  Previous (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-US/8f27252e-e611-410d-9ed9-3006c86549dc.html) Next 
Controlling Level
US/8bef4453a10ae344e10000000a423

US/7cd316539a149a06e10000000a441
Overhead

Variance Calculation

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Variance Calculation

Загружено:

Авторское право:

Доступные форматы

10/17/2019 Variance Calculation - SAP Help Portal

Cost Object Controlling (CO-PC-OBJ) 

Product Cost Collector Manufacturing orders

Cost Object Controlling (CO-PC-OBJ) Integration 

Product Cost by Period

Product Cost by Period: Scenario

Product Cost by Period: Scenario delivery.

Controlling Level De ne Valuation Variant for WIP and Scrap (optional)

Product Cost by Period: Scenario An alternative material cost estimate

Overhead De ne Target Cost Versions

If the reporting point structure is changed, use exible reporting points

Cost Object Controlling step.

Special Requirements in Joint Productio DLT (Deleted)

Variances have been calculated for the order

Cost Object Controlling (CO-PC-OBJ) 

Overhead In Product Cost by Order you determine the cumulative variance.

Periodic Variance Calculation

The variances of the period are calculated in the following formula:

Product Cost Collector

US/67b31453e0023047e10000000a445 collectors and manufacturing orders).

Controlling Level Cost object hierarchy without distribution

Cost Object Controlling

Production Process collector 700000:

(/viewer/6fe2dad9dab7486fb4469d1355 Allocated actual costs (cost element 895000): USD 20,000

Control costs: USD 10,000

Allocated actual costs: USD 0

Overhead Cumulative Variance Calculation

The order has the settlement type FUL (full settlement).

Overhead 2. Resource-usage variance

3. Input quantity variance

4. Remaining input variance

6. Output price variance

Table of Contents   7. Lot size variance 

Cost Object Controlling (CO-PC-OBJ) 8. Remaining variance 

Product Cost by Period

(/viewer/6fe2dad9dab7486fb4469d1355 Execute variance calculation for the orders in the background

(/viewer/6fe2dad9dab7486fb4469d1355 Generate a detail list for each order

explanation of the variances.

Product Cost by Period Update of Data by Currency

Production Process Look at the messages under Goto  Message Log .

Overhead Improving Performance

Reorganization of Manufacturing Orders (/viewer/6fe2dad9dab7486fb4469d13552824f2/6.18.11/en-

Table of Contents   Reorganization of Product Cost Collectors 

Special Requirements in Joint Productio

Product Cost by Period: Scenario

Вам также может понравиться