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Define Variance
Keys
You definevariance keys in this
step.
Orders (
product cost collectors or
manufacturing orders) and
cost object nodes in
cost object hierarchies can only be selected for
variance calculation if a variance key is entered in the order or
cost object node.
You can calculate variances either for the
entire life of the object (cumulative) or for a specific posting period
(periodic).
InProduct Cost by Order you usually calculate
the variances cumulatively.
In cumulative variance calculation,
the
target costs are calculated on the basis of the quantity you have
transferred to stock for the order. The actual costs are for the entire life
of the order. Variance calculation requires that the order have the status DLV
(delivered) or TECO (technically completed).
In
Product Cost by Period, you always calculate the variances
periodically.
- In variance calculation by period, the target
costs are calculated on the basis of the quantity that you delivered to stock
in the period. The actual costs are only for the period in which you calculate
variances. Variance calculation requires that a goods receipt was posted for
the order in the period. If that is not the case, the system only calculates
remaining variances.
The variance key specifies the
following:
- scrap variances are calculated
- Whether a document is written containing the
date, user name, and change made (line item)
As a rule, the line
item document is not necessary for variance calculation. If, however, you
decide to turn on this indicator, you should be prepared for extended run
times during variance calculation.
The following requirements must be met before
you can calculate scrap:
- In repetitive manufacturing in Product Cost by
Period, reporting point backflushes must be entered.
In
repetitive manufacturing , you must specify in the repetitive
manufacturing profile whether reporting point quantities can be
entered.
See
also:
Transfer of the
Variance Key into an Order
The variance key is transferred into the master
data of the order in the following way:
- You define a variance key as a default value
for each plant.
- When you create a material master record, the
system proposes a variance key using the default value for that
plant.
- When you create a
production order or
process order to manufacture the material, the system proposes a
variance key through the entry in the material master record.
-
product cost collector to manufacture the material, the system
uses that variance key as a default value for the product cost
collector.
Transfer of a
Variance Key into a Cost Object Node
If you are not using actual cost distribution,
you do not calculate variances for the orders assigned to the cost object
hierarchy (such as product cost collectors). Instead, you calculate variances
for thecost object nodes themselves. You specify in the
cost object category whether variance calculation is allowed for
the cost object nodes of a cost object hierarchy. You can then specify a
variance key as a default value in the cost object profile. You link this cost
object profile to a cost object category.
Requirements
Decide if you want to use the functions Product
Cost by Order or Product Cost by Period. Read the section Product
Cost by Period or Product Cost by Order? in the Cost
Object Controlling documentation. Subsequently, make the
necessary settings in Customizing.
Standard
Settings
The standard system contains predefined
variance keys for production orders, process orders, and product cost
collectors that you can use as supplied.
Actions
Check whether the existing variance keys meet
your requirements. If you require your own variance keys, proceed as
follows:
1. Choose
New entries and enter a number and a name for the
new variance key.
2. Specify
whether scrap should be calculated separately.
3. Specify
whether a document should be written with information on variance
calculation.
4. Save the
variance key.
5. Go to the
menu option
6. If you are
using cost object hierarchies, go to the following menu options:
Specify that
variances can be calculated for the cost object hierarchy. Link the cost
object category to a cost object profile.
Enter a variance key
as a default value in the cost object profile.