CO-CCA: Variance Calculation in Cost Center Accounting
Description
Variance calculation in CO-CCA is used to display the balance between actual costs and allocated actual costs in different variance categories. The individual categories are determined cumulated, meaning the total of the individual variances corresponds to the total balance of the cost center.
Variance calculation distinguishes between the input and output sides of the cost center.
The input side contains all debits and all credits of the cost center except for credits from activity allocations. On the input side, the actual costs (control costs) are compared with the target costs. The following variance categories can be determined here.
- Price variance
- Quantity variance
- Resource-usage variance
- Input variance
The output side contains the activity allocations of the cost center. On the output side, the absorbed actual costs are also compared with the target costs or the plan costs. The variance categories of the output side are:
- Fixed costs variance
- Remaining variance
In CCA, actual costs can only be posted to cost centers, not a cost center's activity types. However, to compare them with activity type target costs and to identify variances on the activity types, actual costs must be distributed between them through splitting.
For more information, see
Variance Calculation in the implementation guide for CCA.
Change system parameters in customizing
To execute variance calculation in CCA, a target cost version for the respective controlling area must be created first.
In Release 3.0, only version 0 is allowed as an entry for all versions (plan, actual, and target cost version). The standardization of variance calculation in CCA and Product Cost Accounting, however, makes the target cost version necessary. For more information, see Maintain Target Cost Version in the implementation guide for CCA.
Dependent functions
Related functions of variance calculation are target cost calculation and
actual cost splitting. The programs used for these functions are identical.
Only one functionality was left out, meaning variance calculation contains
both target cost calculation and actual cost splitting. For more information,
see
Maintain Splitting Layout in the implementation guide for
CCA.
A further function is plan cost splitting. The first split does not apply for plan cost splitting, meaning that cost center plan costs are distributed to activity types only by means of splitting rules. The splitting rules are identical for plan and actual data. The splitting bases may vary due to different plan and actual data.
Planning
Future releases will include extensions of the existing variance categories.