Problem with variance target cost version

[Former Member]

Hi!

I was asked to do the variance calculation using KKS2. However, I got an error message - that I don't have a variance target cost version set.

Which settings should I make in variance target cost version in order to be able to make variance calculation.

By the way - what is variance calculation needed for.

Best wishes,

Karol

[Former Member · Accepted solution]

Hi Karol

The error is becoz u hv not defined target cost versions and variance variants in cost object controlling. Follow the steps below

1) Create variant key

2) Assign key to plants

3) Create varaince variant and select relevant varaince catg

4) Create target cost version and assign variance varaint

5) In target cost version - in control costs select actual cost radio button and in target costs - select current cost estimate and costing version shld be 0

Next question

Variance calculation is needed to compare target costs with actual costs

Variance is calculated for orders with DLV and TECO. For other status WIP is calculated. For an order either variance or WIP is calculated. Never both

FI entries are posted for WIP and Variances only during settlement

Hope the above clarifies - pls assign points as a way to say thanks