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 Variance Calculation for Production Orders


As of SAP Accounting powered by SAP HANA, variances for production orders, process orders, and product cost collectors are calculated with transaction code KKS1H.

Accelerated collective variance calculation compares the target costs with the control costs and assigns the resulting variances to variance categories. Standard costs are used as the target costs. Control costs are actual costs less scrap costs.

The following scenarios are supported:

  • Variance calculation on PP production orders, production order valuated by sales order cost estimate, material cost estimate, and production lot cost estimate

  • Variance calculation on product cost collectors

  • Variance calculation on process orders

  • Variance calculation on joint production orders

  • Target cost version 0 (Target Costs for Total Variances) is supported. Control costs are based on the actual cost of the order. Target costs are calculated based on the current standard cost estimate of the order.

    Note Note

    The option All Target Cost Versions is not supported.

    End of the note.
  • Scrap variances are calculated based on the standard cost estimate or the product cost collector’s preliminary cost estimate.

  • Calculation of variances for specific plants.

Note Note

  • The explanation function provides less detailed information than before. No explanation is provided for scrap calculation.

  • Since the calculation steps in HANA differ from those in ABAP, rounding differences may occur with scrap variances and overhead costs.

End of the note.

User-Defined Error Management is not supported in KKS1H.

Effects on Existing Data

You need to check your Customizing settings and ensure that they are adapted for the new variance calculation transaction. For detailed information see below under Effects on Customizing.

You also need to check the following transactions:

Define Material Master Data

Transaction code: MM02

Do not change the origin group of the delivered material.

Define Routing Master Data

Transaction code: CA01

Multiple operation sequences and parallel sequence are not supported.

Operation split for scheduling is not supported.

Effects on Customizing

The following Customizing settings need to be checked or carried out:

Define Variance Keys

Write Line Items should be selected.

Define Variance Variant

Minor differences are not supported.

Define Valuation Variant for WIP and Scrap (Target Costs)

Alternative Material Cost Estimate is not supported.

For product cost collectors, the priority between Current Std Cost Estimate and Plan Costs/Preliminary Cost Estimate is supported.

For other objects, the valuation strategy should be only Current Std Cost Estimate.

Define Target Cost Version

Target Cost Version 0 is supported. Control cost is based on the order cost and target cost is based on the current standard cost estimate of the order.

Define Primary Data for Input Price Variances

Primary price variances are not supported.

Define Costing Sheet

Note Note

  • In the Base configuration of the costing sheet:

    All units of measure of the cost elements defined in the Base must be compatible.

  • In the Overhead Rate configuration of the costing sheet:

    The standard dependencies (D000 – D080) are supported. The customer-defined dependencies are not supported due to HANA technical limitations.

    A quantity-based overhead rate should not be referenced by another quantity-based overhead rate.

    Object currency conversion is not supported for quantity-based overhead rates. Users need to configure the amount using the controlling area currency in the Costing Sheet. In such cases, the object currency must be the same as the controlling area currency.

    For quantity-based overhead rates, the specified unit of measure should be compatible with the unit of measure of the cost element that is grouped by the corresponding Base configuration.

  • In the Credit configuration of the costing sheet:

    Order and Business Process are not supported as the object to be credited.

End of the note.
Fiscal Year Variant

The fiscal year variant must match the month of the calendar year.