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Variance calculation_PP

Former Member
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Dear friends,

I wants to calculate variance for my production order. In my order "control data" tab , i have given varince key as "000001". My costing sheet is A00001(Standard/Surcharge key)

Please guide me what are all the config has to be done to calculate variance?



Accepted Solutions (1)

Accepted Solutions (1)

Active Contributor
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Hi Senthil,

Since you understood the reward stuff, I am responding.

You need to define the following,

1. Variance Key - Transaction "OKV1"

2. Assign that to Plant using "OKVW"

3. Define Variance Variant using "OKVG"

4. Define Valuation variant for WIP/Scrap calculation using "SPRO"

5. Define target cost version by assiging sl no 3 & 4 and also how the cost calculation should be used.

Once this activities are completed, execute production/process order and then after goods movement and some confirmations process Variance using "KKS2" as a period end activities.

Hope this helps...



need not remind you on rewards, i think

Answers (2)

Answers (2)

Former Member
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Hi Prosobh,

You explain me on these areas

A.. Valuation variant for scrap and WIP----- I have given valuation variant as 001

Priority--1 , Plan costs/ Preliminary cost estimate

Priority--2, Alternative mat.cost estimate,Costing variant --PPC1,Costing version-1

Priority--3, Current std.cost estimate

B. Define target cost versions.

For my plant i have defined cost versions 0,1,2.

In Detailed view of target cost version 0 for my plant

Variance variant--001,

Valuation variant for scrap-001

Control costs---i activated "Actual costs" indicator.

TARGET COSTS----WHAT INDICATOR SHOULD I SELECT? (Sytem by default selects " Current std cost estimate" since costing version is "0".

C. In detail version of target Costing version1 for my plant,

Variance variant--001

Valuation variant for scrap--001

Control costs---"Actual costs"

Target costs-Plan costs / Preliminary cost estimate, Costing version0

D. In detail of target costing version 2 for my plant,

Variance variant--001

Valuaction variant for SCRAP---001

Control costs--Actual costs

Target costs-- plan costs/ Preliminary cost est

Is the above setting correct?

D. Define primary data for price variances--t.code OKA8,

Which cost element sholud i assign---Is it price difference account?

E. I have run KKS2 for my order (i have selected indicator 'all target cost versions".).i am getting the following error...

<b>1..Only remaining variance--in version 0, no target costs for order 9000051</b>

How to resolve this?



Former Member
0 Kudos

Hi Senthil

You have to configure in the following

SPRO->Controlling->Product cost controlling->Cost object controlling->product cost by order->Period end closing->Varaince

Once you configure the above, you can run KKS2 and see the variances under various SAP defined categories.

Get more info on variance at the following link