Target / Actual / Production Variances
Report with which you can analyze the results of variance calculation in the following application components of Product Cost Controlling
using product drilldown:
Product Cost by Period
Product Cost by Order
The reporting time frame can be cumulative or limited.
The results of variance calculation depend on which target version was specified when the report was started.
Prerequisites
Make sure that the variances have been calculated for the specific target cost version in the relevant reporting time frame. Reports of summarized analysis require that a data collection run be executed beforehand.
Features
You can call up a detailed report for the variance categories to investigate the production variances in more detail. There are two scenarios for the interpretation of the data.
Scenario 1: Standard costs, alternative material cost estimate, preliminary order cost estimate versus (net) actual costs
The data is based on key figures and/or cost elements:
Target costs = values of the standard cost estimate / alternative material cost estimate / preliminary order cost estimate adjusted to the actual quantity
Actual costs
Variances = calculated variances without scrap variances
Scrap variances
Work in process (WIP)
Control costs = Actual costs – WIP – Scrap variance
Scenario 2: Standard cost estimate versus preliminary order cost estimate (planning variance)
The data is based on key figures and/or cost elements:
Target costs = values of the standard cost estimate adjusted to plan quantity of the order (planned lot size of the manufacturing order)
Actual costs
Variances = Calculated variances between preliminary order cost estimate and target costs calculated on basis of standard cost estimate
Scrap variance (has no relevance for planning variances)
Work in process (WIP) (has no relevance for planning variances)
Control costs = planned costs for the order
Interpretation
When you interpret this report, note whether objects with a settlement rule with only one settlement type PER (Periodic)
or FUL (Full settlement
) are included, or whether you are accessing a report in summarized analysis in which objects have been summarized with both settlement types.
Settlement type Periodic
The following interpretations for each period under consideration apply only to a report for an object with the settlement type Periodic
:
Variances = Target Costs – Control Costs
Control costs = Actual Costs – WIP – Scrap Variances (only for SAP standard target cost versions 0,1, and 3)
In a report with original cost elements, work in process is displayed in its source cost elements. The cost estimate used to calculate the source cost element is the same as the one used to valuate work in process at target costs. You determine which cost estimate is used by determining the valuation variant for work in process and scrap (see also: Work in Process in Product Cost by Period).
Settlement type Full Settlement
Note the following points with objects that have the settlement type Full settlement
:
Work in process is not displayed in its source cost elements, because no target costs are calculated on the basis of another cost estimate for valuation of work in process. Rather, work in process corresponds to the balance of the order for which final delivery has not yet taken place (see also: Work in Process in Product Cost by Order). Work in process is updated under results analysis cost elements. To analyze work in process, use the report
Work in Process
.Target costs and variances are only calculated and updated cumulatively in the period in which the status DLV (
Delivered)
or TECO (Technically completed)
has been reached for the manufacturing order.
Summarized Analysis with Product Drilldown
Work in process is derived from the results analysis cost elements for both objects with settlement type Periodic
and objects with settlement type Full settlement
. If the results analysis cost elements are not assigned in the cost component structure for product drilldown, the work in process appears in the cost component Other
(if defined) or as not assigned.
Detailed Reports with Original Cost Elements
Scenario: variances have not been calculated
Target cost calculation is initiated dynamically
No variances are calculated
No data is updated
This option enables an ad hoc target/actual comparison for a single object.
Scenario: variances have been calculated
Target costs according to variance calculation
Variances according to variance calculation