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input quantity variance is not showing correct value

Former Member
0 Kudos

Hi,

The input quantity variance in cost analysis for a process order is not showing the correct value i tried calculating with different formulas i am attaching the screen shot.

Waiting for your valuable responses.

Regards

Naveen

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi Naveen,

Can you please explain in more detail why you believe that quantity variance is calculated incorrectly.

Regards,

Szymon

Former Member
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Hi szymon,

According to the formula= (actual input qty - plan input quantity)* plan price, the value should be 8688.96 but it is showing as 5300.90 and i am unable to calculate that value can you help me with that.

Regards,

Naveen.

robin_mcgee
Active Participant
0 Kudos

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

Former Member
0 Kudos

Hi robin,

I have gone through that documentation and maintained all the settings mentioned in it, my problem is not about input price variance it is about input quantity variance, it is not posting the correct value

please check the screen shot waiting for your reply.

Regards

Naveen.

robin_mcgee
Active Participant
0 Kudos

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

Former Member
0 Kudos

Hi robin,

Actually the problem is with that particular order only other production orders are showing correct values

I have checked the costing view and validity of costing variant as you mentioned but still unable to find the solution.

Regards,

Naveen.