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Settlement of
Production Variances
When you valuate products with the standard
price of production, so-called "production variances" can result on the
production orders (actual cost of goods manufactured - (produced quantity *
standard price)).
These production variances are determined in
Product Cost Planning (CO-PC) and broken down there according to variance
categories. When you settle the production order, you can transfer these
variance categories to separate value fields in Profitability
Analysis.
Prerequisites
1. The
production variances first need to be calculated in CO-PC.
2. Your PA
transfer structure must contain assignments of variance categories to value
fields.
3. In the
settlement profile, you defined that variances are to be settled.
4. The
settlement rule to profitability segments is created automatically based on
the information available in the production order (product, product group,
plant and so on).
6. The desired
form of Profitability Analysis must be
active in the relevant controlling area.