SAP : Functionality KKS1


The system compares the control costs with the target costs and assigns the variances to variance categories. The variances are assigned to variance categories in the following sequence:

               • Input price variance
               • Resource-usage variance
               • Input quantity variance
               • Remaining input variance
               • Mixed-price variance
               • Output price variance
               • Lot size variance
               • Remaining variance

 Variance = 0 if only partial Goods Receipts has been performed.
 Variance = amount if only complete Goods Receipts has been performed.

 Scenario

 You want to calculated Variance either when Order is completed or at month end. Variance must be calculated when order is completed. In this case Variance = amount. Variance must also be calculated at month end even though order is not completed. In this case Variance = 0 (all left over amount is considered as WIP in this case).

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