Sender A contains the following plan and actual values:

The following activity input is executed:

Actual costs of 110.00 USD are incurred on the cost center. The system initially evaluates actual activities with plan prices: 9 hrs x 10.00 USD / hr.

If you calculate actual activity prices, the following data results:

The allocated actual costs total 90.00 USD. This means that there is 20.00 USD (110.00 USD - (9 x 10.00 USD)) left over, excluding revaluation of actual costs on the cost center. You would not settle this amount to the receiver.

Without revaluation, this variation from plan credit and actual credit would be settled to Profitability Analysis (CO-PA), after you analyze the variances in Cost Center Accounting if required. The receiver (for example a production order in Cost Object Accounting) would be settled 10.00 USD less than planned. The cost center, however, would have to bear 20.00 USD / hr extra costs but with less activity than planned.

Despite lower utilization of cost center activity (9 hours actual instead of 10 hours planned), an extra 10.00 USD (variance between 110.00 USD and 100.00 USD) are settled to the receiver (for example, production order) using revaluation. Even though the receiver is debited afterwards, the variance information on the cost center is not lost.