Define Variance Variants
In this step you define the variance variants . Variance variants determine what categories are calculated.
The following variance categories can be calculated:
Variances on the input side:
- Scrap variances
You specify whether
scrap variances are calculated in the step
Define Variance Keys . You control whether scrap variances are
displayed by selecting the indicator for scrap variances in the variance
variant. This enables you to control the display of scrap or the deduction of
the scrap from the actual costs separately for each variance variant; you can
also control this separately for each variance variant by assigning the
variance variant to a target cost version.
Example:
- You have specified in the variance key that scrap variances are to be calculated.
- In target cost version 0, you are using variance variant 001. The scrap variances are turned on in variance variant 001.
- In target cost version 3, you are using variance variant 999. The scrap variances are turned off in variance variant 999.
In the
Valuation Variant for Work in Process and Scrap (Target Costs),
you can specify which cost estimate is used as a basis for calculating the
target costs for the valuation of the scrap variances. You specify this
valuation variant for scrap in target cost version 0. Scrap variances are
calculated in all target cost versions in accordance with the valuation
variant specified in target cost version 0.
Input price
variances are the differences between the planned prices and the actual prices
of the resources used. If this indicator is set, you should make sure
that:
- The Material origin indicator is set in the costing view of the master record of cost-critical materials
- The Record quantity indicator is set in all relevant cost elements
Input quantity
variances are differences between the planned and actual input quantities of
the resources. If this indicator is set, you should make sure
that:
- The Material origin indicator is set in the costing view of the master record of cost-critical materials
- The Record quantity indicator is set in all relevant cost elements
A resource-usage
variance arises when a different resource is used than was
planned.
Remaining input
variances are differences on the input side that cannot be assigned to any
other variance category on the input side (such as overhead).
Variances on the output side:
Lot size variances
are differences between the planned fixed costs and the charged fixed actual
costs. Lot size variances can only be calculated for target cost version
0.
Output price
variances are differences between the
target credit (at the standard price) and the
actual credit (for example at the moving average
price).
If you valuate your
inventories with mixed prices, mixed-price variances may result if the
standard price calculated on the basis of the mixed cost estimate is not the
same as the target cost of the
procurement alternative.
Example:
Suppose the standard
price for a material was calculated in a mixed cost estimate. The material has
price control indicator S, which means that the goods
receipts are valuated at the standard price and the order is credited
accordingly. When the system calculates the total variance, it compares the
control cost (in this case the actual cost) with the procurement alternative
for which the order was created. If the target cost for the procurement
alternative is not the same as the credits at the standard price, a
mixed-price variance will result.
See
also:
New Varianace Category: Mixed-Price VarianceRemaining variances
are variances that cannot be assigned to any other variance category (for
example, rounding differences). If the system cannot calculate any target
costs, only remaining variances will be calculated.
Variances are calculated for all variance categories that are selected in this view.
- If a particular variance category is not selected, the variances of that category will be assigned to the remaining variances. Scrap variances are an exception to this: if you don't want to see scrap variances, these variances can enter all other variance categories on the input side.
- If no variance categories are selected, only remaining variances will be calculated.
The Minor differences field enables you to have small amounts charged and settled as remaining variances, although they are still assigned to the relevant variance category in the detail screen of variance calculation.
Standard Settings
The standard system contains a predefined variance variant.
Actions
Check whether the standard variance variant meets your requirements. If you require a new variance variant, proceed as follows:
1. Select
New entries and enter a key and a name for the new
variance variant.
2. Select the
desired variance categories.
3. Save the
variance variant.