Example for Variance Calculation
In this example, the target costs are compared with the control costs (net actual costs) for a production order. This example shows only variances on the input side.
The actual costs arise from goods movements in the Materials Management component, and confirmations in the Production Planning component or activity allocations in the Controlling component.
If... |
then the system calculates... |
the price of the material issued changes |
an input price variance |
the input quantity of a material changes |
an input quantity variance |
a material is replaced by a different |
a resource-usage variance |
the confirmed values are different from the standard values |
an input quantity variance |
the operation is performed at a different |
a resource-usage variance |
you have confirmed scrap (in Product Cost by Period at operation level, in Product Cost by Order at operation level or at order header level) and you have selected the indicator Scrap in the variance key and the indicator Scrap variances in the variance variant |
scrap variances and reports them |
The following tables provide an overview of the results of variance calculation. The first table shows the planned costs and actual costs for the order by cost element. The second table shows the same information by costing item. The third table shows the values that are calculated when variances are calculated for the order.
Order: Analysis by Cost Element
Resource |
Cost Elements |
Planned Costs |
Actual Costs |
Raw materials |
400000 |
USD 20 |
USD 33 |
|
410000 |
USD 20 |
USD 20 | |
Internal activities |
610000 |
USD 75 |
USD 85 |
|
620000 |
USD 50 |
USD 50 | |
Total costs |
USD 165 |
USD 188 |
Order: Itemization
Plan Values for Resource |
Quantity |
Price |
M WK01 ROH-1 |
2 units |
USD 10 |
M WK01 ROH-2 |
2 units |
USD 10 |
E KST1 LST1 |
15 min |
USD 5 |
E KST2 LST2 |
10 min |
USD 5 |
Actual Values for Resource |
Quantity |
Price |
M WK01 ROH-1 |
3 units |
USD 11 |
M WK01 ROH-3 |
2 units |
USD 10 |
E KST1 LST1 |
17 min |
USD 5 |
E KST2 LST3 |
10 min |
USD 5 |
Results of Variance Calculation
Cost Element |
Variance Category |
Value |
400000 |
Input price variance |
USD 3 |
400000 |
Input quantity variance |
USD 10 |
410000 |
Resource-usage variance |
USD 20 (+) |
410000 |
Resource-usage variance |
USD 20 (-) |
610000 |
Input quantity variance |
USD 10 |
620000 |
Resource-usage variance |
USD 50 (+) |
620000 |
Resource-usage variance |
USD 50 (-) |
|
Total variance |
USD 23 |
