Skip to Content
author's profile photo Former Member
Former Member

Issue with Variances

Hi Experts,

My client is asking for diferent types of variances should be tracked in SAP systemn at the time of Variace settlement .Please find the below listed required variances

Material Variances: Under this head we have PURCHASE PRICE VARIANCE,CURRENCY VALUATION,DISCOUNTS TAKEN FROM SUPPLIERS,MATERIAL USAGE,OUTSIDE PROCESSING VARIANCE,SCRAP,CYCLE COUNT,PROVISIONS FOR INVENTORY RESERVE, STANDARDS CHANGE.

Labor Usage Variance

Labor Rate Variance

Rework

Overhead Variances

Coming about Purchase price variance: we are maintaining price control "S" for all procured materials so at the time of goods receipt any price differences are there that amount is being adjusted to movg avg price and std price remains the same in the accounting 1 tab. At the time of Std costing system is taking the std price and also at the time of actual goods issue also system is taking the std price so my doubt is how system able to adjust the purchase price variance to production order......

Please provide the logic for calculate Labor usage variance and Labor rate variance seperately.......

Overhead variances: in the standard SAP is calculating overhead Variance as difference of Planned percentage overhead rate on material consumption vs Actual percentage overehad rate on material consumption which we are maintaining in the costing sheet. But as per my client requirement overhead variance is difference between posting Overheads in FB50 vs the total Overheads credited to the cost center which we assigned in the credit key in the costing sheet.

so please guide me how to calculate overhead variances and settle these to production order as per my client requirement.

Kindly suggest At the time of variacne settlement how to show all these 5 types of variances in COPA document.

Its very very urgent please help on this issue and Your suggestions will be rewarded well

Regards,

Spandana

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

1 Answer

  • Best Answer
    Posted on Oct 24, 2011 at 02:00 PM

    Hi

    It does not work that way... Any PPV at the time of GR is treated as an overhead... you cant track it down to a Prod order

    Std SAP offers several variance categories for both Input and Output... Search "Input Usage Variance" in help.sap.com and you can see full list of variance cateogries and its explanation

    Create a variance variant and choose what all categories you want... Assign this variance variant to your Plant so that it gets assigned to all mat masters (IMG>CO>Prod Cost Contr > Cost Objj Contr > Prod cost by Order > Period end > Variance)

    br, Ajay M

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.