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Production Order Variance Calculation Error (KKS2)

Nov 15, 2016 at 12:38 AM

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Former Member

Dear Experts,

I have a strange issue when looking at the variances in a production order.

For a production order that has been delivered, confirmed and TECO'd. I have completed the template allocation process, calculated any WIP. Finally, when I go to check the variances; the following issue occur's for example;

Target Cost = $1000

Actual Cost = $2000

The variance is showing in KKS2 as $3500.

I understand what a variance is, which is "the difference between the target cost (actual quantity * std. cost estimate) and actual cost (actual quantity * actual costs)."

So I'm not sure how this could be occurring? Would anyone know why this occurring?

See screenshot attached (please note I ran this variance in test run for this example only)

varianceexample.png

Thanks,

Patrick

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