How production order variance get calculated

[Former Member]

Hi ,

could you please explain any one to me how production order variance are geting calculated. with any basic example.

I have secrched in SDN and google but examples are much more complicated. Can any one explain me in simple way..

Regards,

Mahesh.

[former_member183818 · Accepted solution]

hi mahesh,

have you gone through the documents i posted? come online tomorow i will b online in simonjohn181@gmaol.com wil check

[former_member183818 · Accepted solution]

simonjohn181@gmail.com

[Former Member · Accepted solution]

Hi Ranjit,

Thanks.

I gone through document 3 times. but not able to solve.

I am MM consultant new to PP , i will surely catch u

Thanks once again

-Mahesh

[former_member183818]

no problem will help you

[svs_sap]

Hi Mahesh,

Go through the above documents created by Mr. Ranjit, which are really helpful and easy to understand and very through in subject.

Also look into SAP help and an example in below link

http://help.sap.com/saphelp_40b/helpdata/en/90/ba6b08446711d189420000e829fbbd/content.htm

Regards,

Sharat

[Former Member]

Hi ,

I have gone through you link.

I am having production order number.From it i can get parent item and child item.

But how can i get its information about planned cost and actual cost.

me executed report-KKBC_ORD , i am getting following results.

Cost element text	Origine	Total target cost	Total actual cost	Target/Actual Variance	T/I var(%)	Currency
Production costs provided	1020/V11H485041	0	32,967.00	32,967.00		EUR
Production costs provided		0	0.09-	0.09-		EUR
Production costs provided	1020/V11H485041DC	0	32,967.66-	32,967.66-		EUR
Configuration Costs	10001392/1020CP	0	0.75	0.75		EUR
		0	0	0		EUR
		0	0	0		EUR

thanks-

mahesh

[former_member183818]

Hi,

Check the documents,

Understanding Production Order variance Part 1

Understanding Production Order variance Part 2

Regards

Ranjit Simon

[Former Member]

Hi,

Whenever any one is manufacturing, its very important for the company to know what is the Cost of Production. Now you can understand that this term is in itself quite generic and the cost of Production can vary.

This is the reason, in Production/ Process Order we have something called Planned Cost or Target Cost. Now during Actual posting, these costs might change due to many factors and so the Actual Cost can differ from the Planned Cost. This difference of Actual Cost and Planneed Cost is Variance and you can have to calculate this variance for Production to understand how much is the deviation from cost perspective that you have while manufacturing the material

The Variance is settled as a part of Period End closing process

Regards,

Bhaskar