on 07-25-2014 8:46 AM
Dear Experts,
I have doubt on understanding of variance settlement by using TCode KO88/ CO88.
Can anyone explain on it?
Regards,
Himanshu Mehta
Hi Mehta,
What is exact requirement on variance part?
The simple definition is:
Actual cost = Standard cost + Variance.
To balance the actual cost we calculate variance and transfer it to FI and COPA as part of month end process. You can calculate variance with the order status either DLV or TECO.
KO88 is used to calculate variance on single order and CO88 is used to calculate variance on plant level.
BR, Srinivas Salpala
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Hi Himahshu,
A very basic idea would be, regardless if it is individual or collective, variance settlement settles the difference between debits (consumptions + activities + overheads) and credits (goods receipts) posted to the process/production order. After settlement, order balance should be zero.
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Hi Himanshu,
KO88 is used for individual Internal Order/ Production Order settlement processing.
CO88 is used for collective Production Order settlement processing.
Regards,
Mohammed Kalim
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