Costing variants contain the criteria for the costing. You use costing variants to stipulate which pricing strategy the system should use for the costing and how overhead is to be determined.

It is the costing sheet which determines the overhead amount applying to planned costs in networks. You define the costing sheet in the Project System IMG and assign it to the costing variant by way of the valuation variant.

Costing variants consist of:

• A costing type
• A valuation variant.
• Costing variants for the unit costing in the general costs activity and material component.

The costing type determines the object, such as a network, for which a costing is to be created.

The valuation variant contains the valuation bases for materials and activity types managed in the costing; for example, which price is taken from the accounting view in the material master record. In the valuation variant, you also define the costing sheet to be used for calculating overhead.