Procedure documentationCalculating Variances

Procedure

  1. Choose Start of the navigation path Accounting Next navigation step Controlling Next navigation step Product Cost Controlling Next navigation step Cost Object Controlling Next navigation step Product Cost by Period or Product Cost by Order Next navigation step Period-End Closing End of the navigation path. Then choose the following:

    • In Product Cost by Period choose Start of the navigation path Single Functions: Product Cost Collector Next navigation step Variances Next navigation step Individual Processing or Collective Processing End of the navigation path.

    • In Product Cost by Order, choose Start of the navigation path Single Functions Next navigation step Variances Next navigation step Individual Processing or Collective Processing End of the navigation path.

    To calculate the variances for a particular order (product cost collector or manufacturing order) choose Individual Processing. To calculate the variances for all product cost collectors in a plant, choose Collective Processing.

  2. Enter data as required.

  3. Specify whether you want to calculate the variances for all target cost versions that you defined in Customizing, or only for a particular target cost version. If you choose Selected target cost versions, specify the target cost version under Start of the navigation path Extras Next navigation step Set versions End of the navigation path.

  4. Set the indicators for processing control as desired.

    Note Note

    Only the variances calculated on the basis of target cost version 0 can be settled to Profitability Analysis (CO-PC).

    End of the note.

  5. Choose Start of the navigation path Variance Calculation Next navigation step Execute End of the navigation path.

Result

The variances are calculated. If you have set the Detail list indicator in the processing options, the screen Variance Calculation: List appears.

This is a list of all processed objects and their values. It includes:

  • The target costs (according to the target cost version)

  • The posted actual costs (debits for goods issues, internal activity allocations, overhead, and so forth)

  • The allocated actual costs (credits due to goods receipts and settlements)

  • The sum of the variances on the input sides

  • The sum of the variances

You can use the display variant to display other fields (such as the scrap variance).

Note Note

For information on when you should select the Detail list indicator, refer to the section Variance Calculation under Features. If you didn't select the indicator, the Basic List screen appears.

The information shown in the basic list includes:

  • The selection parameters

  • The total number of messages and the number of messages of each message type

  • The processing categories

End of the note.

If the variances were calculated in a target cost version relevant to settlement, the order receives the status VCAL (Variances calculated). You can include this status in the definition of the status profile in Customizing for the Product Cost Controlling Information System.

Note Note

If an order (product cost collector or manufacturing order) is not processed in collective processing, access individual processing and start variance calculation for the individual product cost collector. The system issues messages in individual processing that are suppressed in collective processing.

End of the note.
Breakdown of Variances into Variance Categories

To see the variances broken down into variance categories, position the cursor on the value in the variances column and double-click.

Breakdown of Variances into Cost Elements

To see the variances broken down into cost elements, choose Start of the navigation path Go to Next navigation step Cost Elements End of the navigation path from the object list. The screen Variance Calculation: List appears again, but this time the costs are broken down into cost elements. If you have selected the Material origin indicator in the costing view of the master records of the materials, you can continue to expand the cost elements for materials and see the variance at the material level.

Explanation of the Target Costs

To see how the target costs were calculated, position the cursor on a value in the target costs column and choose Start of the navigation path Extras Next navigation step Explain target costs End of the navigation path. The screen Target Cost Calculation: Explanation appears.

Explanation of the Variances

To see how the variances were calculated by cost element, position the cursor on a value in the column variances in the cost element display, and choose Start of the navigation path Extras Next navigation step Explain variances End of the navigation path . The screen Variance Calculation: Explanation appears.

Clicking on a value for the variance category in the Total column gives you information on how the value for that variance category and cost element was calculated.

Explanation of the Scrap Variance

To see how the scrap variance was calculated for each cost element, choose Start of the navigation path Extras Next navigation step Scrap analysis End of the navigation path. From the screen Variance Calculation: List you can access the explanation facility for scrap. Here you can see which operations incurred scrap variances, and the costs.

Switching to a Different Target Cost Version

If you have calculated the costs for multiple target cost versions and want to switch to a different target cost version, choose Start of the navigation path Go to Next navigation step Target Cost Version End of the navigation path and choose the desired target cost version.

Schedule Manager: Worklist Monitor

If you are using the multilevel worklist, you can edit the objects that have errors in the monitor of the worklist. For more information, see the following section:

Worklist Monitor.