Hi,
Variance Analysis
Use
You can use product drilldown to display the existing variances between planned and actual costs, or target and actual costs (see also : Terminology in Product Cost Controlling)
Variances are the difference between planned and actual costs.
Planned values are adjusted to a reference base, as a rule to the actual values, in order to calculate variances between target and actual costs. This adjustment is performed during variance calculation. You calculate variances in period-end closing of Product Cost by Period or Product Cost by Order. During variance calculation, the variances to be analyzed are distributed to individual variance categories. These variance categories can be displayed in the information system.
If variances have not yet been calculated, target costs can be calculated dynamically in the information system. The target costs are calculated on the basis of a target cost version.
Prerequisites
Before you use the reports Target/Actual/Production Variances and Variance Categories, you must have already performed variance calculation in period-end closing of Product Cost by Order or Product Cost by Period.
1. _Target / Actual / Production Variances_
Use
Report with which you can analyze the results of Variance Calculation in the following application components of Product Cost Controlling using product drilldown:
Product Cost by Period
Product Cost by Order
The reporting time frame can be cumulative or limited.
This report shows the results of variance calculation. The results are dependent on which target version was specified at report call.
You can call up a detailed report for the variance categories to investigate the production variances in more detail. There are two scenarios for the interpretation of the data:
Scenario 1: Standard costs, alternative material cost estimate, preliminary order cost estimate versus (if necessary, net) actual costs
Scenario 2: Standard cost estimate for the material versus planned costs for the order
Standard cost estimate for the material versus planned costs for the order corresponds to target cost version 2 (planning variance)
2. Target / Actual Comparison
Use
Use for product drilldowns:
Report with which you can analyze the target and actual data in the following application components of Product Cost Controlling using product drilldown:
*Product Cost by Period
*Product Cost by Order
The reporting time frame can be cumulative or limited.
This report is used to compare the target and actual data that was determined during Variance Calculation. The results of variance calculation are based on the target cost versions specified for the report: Different variances are considered, depending on the target cost version
Features
Data Displayed
The following data is shown based on key figures and/or original cost elements:
*Target costs
*Actual costs
*Target costs per unit
*Actual costs per unit
*Absolute variances = Actual costs u2013 Target costs
*Percentage variances = Absolute variances / Target costs
The variances can also be displayed per unit.
The above figures are based on the costs per unit of output.
*Target quantity
*Confirmed quantity
*Absolute variances = Target quantity u2013 Confirmed quantity
*Percentage variances = Absolute variances / Confirmed quantity
3. Variance Categories
Use
Report that you can use with product drilldown to analyze the individual variance categories for the following application components:
*Product Cost by Order
*Product Cost by Period
The reporting time frame can be cumulative or limited.
This report makes it possible for you to analyze the results of the variance calculation. The results of variance calculation are different depending on the target cost version specified for the report.
You can compare the following costs:
*Target costs that have been calculated on the basis of standard costs against actual costs (without work in process and scrap variances).
*Target costs that have been calculated on the basis of a preliminary cost estimate of an order (product cost collector or manufacturing order) against actual costs (without work in process and scrap variances).
*Target costs that have been calculated on the basis of an alternative material cost estimate (for example, modified standard cost estimate, current cost estimate) against net actual costs (without work in process and scrap variances).
*Target costs calculated on the basis of standard costs against planned costs of manufacturing orders.
Structure
Data Displayed
The following variance categories are shown based on key figures and/or original cost elements:
*Scrap variance
*Input price variance
*Input quantity variance
*Resource-usage variance
*Remaining input variance
*Mixed price variance
*Output price variance
*Lot size variance
*Remaining variance
Thanks,
Vinodh
Bluesky
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