Variance Calculation - Changes for release 3.0
Description
In 3.0, price variances can be calculated in variance calculation. This function requires that the Material origin indicator in the costing view of the material master be set.
Change system parameters in customizing
The following changes were made in Customizing:
- variance key
You can specify the following in the variance
key:
- whether variances are to be calculated
- whether scrap is to be calculated
- target cost version
The target cost version is a combination of the
former variance version and target cost version. It indicates the basis on
which variances are calculated and which variance variant is used.
In Release 3.0 or higher there is a new target
cost version that compares the planned costs of the production order with the
standard cost estimate of the material produced.
- variance variant
The variance variant points to a new variance
category called input variances. If variances are settled to profitability
analysis, the input variances must be added to the PA settlement
structure.
- percentage variances
If you calculate price variances in variance
calculation, the percentage rates for the prices variances are not
required.
For more information on this, see the Implementation Guide.
- Period-end closing in order-related production
Define variance keys- Period-end closing in repetitive manufacturing: run schedule header
- Period-end closing in repetitive manufacturing: cost object hierarchies without actual cost distribution
- Period-end closing in process manufacturing: process orders
- Period-end closing in process manufacturing: cost object hierarchies without actual cost distribution
Changes to the interface
You call up variance calculation with Accounting -> Controlling -> Product cost accounting -> Order-related production / Repetitive mfg / Process mfg.
You carry out variance calculation at the end of the posting period. You do this by choosing Period closing ->
- Individual processing
You calculate the variances for an order. You
can choose whether you want to calculate variances for specific target cost
versions or for all target cost verions in the controlling area.
- Collective processing
You calculate variances for all orders within a
plant. Variances are calculated for all target cost verions in the controlling
area.
You can call up the following screens from the list:
- Detail screen
The detail screen shows the following data for
each order:
- order
- plant
- material number for the product manufactured
- currency
- unit of measure
This screen lists the following data split
according to fixed, variable and full costs:
- charged actual costs, that is credits resulting from goods receipts
- target quantity
- actual quantity
- price variance
- input variance
- lot-size variance
- total variance
- Single object
All cost elements under which costs were posted
to the order are listed. The following information is displayed for each
cost element:
- cost element name
- origin group in material master record
- actual costs
- target costs
- total variances
You can select a cost element from this list and
call up two explanation screens:
- Target cost explanation
In this screen, you see detailed information on
how the system calculated the target costs for the selected cost
element.
- Variance explanation
In this screen, you see detailed information on
how the system calculated variances for the selected cost element.
If you choose Variance
categories, the system displays a tree giving you an overview of
the variance categories.