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 Variance Calculation for Production Orders


As of SAP Accounting powered by SAP HANA, variances are calculated on production orders with transaction code KKS1H.

Note Note

  • Variances can only be calculated on production orders, not on product cost collectors or process orders.

  • The option All Target Cost Versions is not supported.

End of the note.

Accelerated collective variance calculation compares the target costs (in the form of standard costs) with the control costs (actual cost less scrap cost) of all production orders in the plant, and assigns the resulting variances to variance categories.

The following scenarios are supported:

  • Variance calculation on PP production orders with full settlement, production order triggered by sales order (with marked sales order cost estimate).

  • Target cost version 0 (Target Costs for Total Variances) is supported. The control cost is based on the actual cost of the order, while the target cost is calculated based on the current standard cost estimate of the order.

  • Scrap variances are calculated based on the standard cost estimate.

  • Calculation of variances for specific plants.

Processing can be optimized by means of an Auto Split option that divides the set of orders into eight subsets. This option reduces processing time when the number of orders is sufficiently large.

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)

The valuation strategy should always use 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:

    From/To origin are not supported. 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:

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

End of the note.
Define Cost Component Structure

In the cost component structure configuration, Origin Group is not supported.

Fiscal Year Variant

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