Variance calculation is based on planned Cost Center Accounting with a reconciled activity network. In variance calculation, the target costs of a cost center are compared to the actual costs of the input side, and the actual costs of the output side.

In the following example, you are provided with all of the variance categories. The cost center demo has two activity types, and uses an iteratively-determined period price, which is based on capacity and not the planned activity. The costs are planned both dependent and independent of activity type.

The example shows you how to call up the variance calculation and each step required for calculating variance results. In addition, the system shows you in detail the explanation facilities for cost splitting and variances.