Variance Calculation for Cost Object Hierarchies (SAP Library

Variance Calculation for Cost Object Hierarchies

Here you define the parameters that control the calculation of variances on cost object hierarchies.

If you are using a cost object hierarchy, you have the following options at the end of the period:

You distribute the actual costs assigned to the cost object nodes to the individual orders according to the target costs for each order (usually for each product cost collector).

When you perform variance calculation for the cost object hierarchy, the system calculates variances separately for each order.

You process the cost object hierarchy as a whole.

In this case, when you perform variance calculation the system summarizes the data in the cost object hierarchy and calculates variances separately for each level of the cost object hierarchy. This means that variances are calculated for each order assigned to the cost object hierarchy and for each cost object node.

The structure of teh summarization hierarchy is determined by a predefined hierarchy ID that you must generate before you can calculate variances. (See Generate hierarchy)