Check Variance Variants for Manufacturing OrdersThis is a new variance category in variance calculation . This variance category only occurs when you valuate your inventories with a mixed price . If the mixed price is not the same as the standard cost of the procurement alternative at which a particular order ( product cost collector or manufacturing order ) delivers to stock, the system performs the following calculation when it determines the variances:
When it determines the total variance , the system calculates the target costs on the basis of the standard cost of the procurement alternative. The target costs are compared to the actual cost. If the mixed price is not the same as the standard cost of the procurement alternative, the difference between the target costs and the actual credit of the order at standard cost is reported as a mixed price variance.
The mixed price variance is a variance category on the output side.
In the variance variant you specify whether you want the system to calculate mixed price variances. If you valuate your materials with mixed prices but specify in the variance variant that mixed price variances are not to be reported separately, these variances are reported as output price variances (providing you have activated output price variances in the variance variant.
See also:
Variance calculation reports an additional variance category.
Define the variant variant correspondingly.
For detailed information on variance calculation, see the documentation Cost Object Controlling.