on 09-17-2014 3:02 PM
Hi Naveen,
Can you please explain in more detail why you believe that quantity variance is calculated incorrectly.
Regards,
Szymon
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Hi Naveen,
There is a pretty good explanation of the variance in the online
documentation:
Variance Categories - Cost Object Controlling (CO-PC-OBJ) - SAP Library
The variance is calculated in the variance calculation (KKS2, KKS1, KKS6) which also has a scrap explanation tool. This might also help to explain the specific results.
Input price variances:
Input price variances are caused by differences between the planned and actual prices of the materials and activities used.
The system can only calculate input price variances if quantities were specified in addition to the planned and actual costs. The following conditions must be met for this:
- Turn on the Material origin indicator in the costing view of the master record of all materials that have a large influence on your costs.
- Uniform units of measure must be assigned to all input materials. That is, material costs can only be totaled under a cost element when such costs are carried under the same unit of measure.
- If you want to calculate variances by cost element/origin group, you must already have entered an origin group in the costing view of the material master record for all material components.
If you have defined primary input price variances in Customizing, the system will calculate input price variance percentages and update them with reference to the operation. When you start the variance calculation process at the end of the period, this data will be cancelled and the input price variances calculated by multiplying the difference between the planned price and the actual price by the confirmed quantity. If the confirmed quantities are incomplete or do not exist, input price variance percentages will be shown.
Regards,
Robin
Hi Naveen,
As you mentioned above, you checked the documentation. Please see below just in case you didn't see this part just in case there is a step missing which may be the cause of your issue:
If you want to calculate variances such as input quantity variances or resource-usage variances, proceed as follows:
- Check the validity period of the cost estimate.
- Check the costing view in the master record of the material being manufactured.
- If necessary, release the cost estimate for the material.
- Create a new cost estimate for the material, and save the cost estimate in itemized form by turning on the Itemization field in the Update parameters dialog box.
- Calculate the WIP or variances again.
Make sure to retain the validity date of the cost estimate long enough to match the date of TECO or DLV.
Regards,
Robin
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