Activity variance and production variance seperate in COPA

Dear experts,
My client wanted to break production variance(ko88 in two parts in COPA reports
Total material variance
Total Activity variance
What i am thinking- In PA transfer structure of Production order.I will create four assignements
1)Material price variance-Only RM cost element(Cost element Group)-Price variance category-Material Variance(value field)
2)Material QTY variance-Only RM cost element(Cost element Group)-Qty variance category-Material Variance(value field)
So both assignment linked to material variance value fields.
same way for activity
1)Activity price variance-Only Activity cost element with 43 categoryt(Cost element Group)-Price variance category-Activity Variance(value field)
2)Activity QTY variance-Only Activity cost element with 43 category(Cost element Group)-Qty variance-category-Activity Variance(value field)
So both assignment linked to activity variance value fields.
Is it works for the above requirements or I will face any technical difficulties.
regards
RR

Hi
For sure, it will work....
Another approach can be to update the variance as per cost component structure instead of variance categories in COPA.... Stil the category wise variances can be seen in Other CO reports like Co03 / KKBC_HOE/KKO0 reports
br, Ajay M

Similar Messages

Actual COGS and Production Variances to COPA (KE27)

Dear all,
if the COGS is revaluated with the ML (revaluation of consumption)
if the COGS is mapped as a dedicated value field in COPA
if the COGS @ actual is passed to the COPA (KE27)
Hence is no longer needed to settle the production order variances to COPA!???
Thanks

Hello Francesco,
Yes. Very True.
Actual Costing will roll up the Cost for every next level. Without ML, the entry normally posted to FI when we run settlement.
Dr/Cr. Production Variance
Cr/Dr. COGM
This is where it remains for information, since Both GL accounts belongs to P & L.
When ML is activated, the variance is added to the next level of the product. Here , if we observe, settlement of variance neither impacted FI, When there is no ML Activation, nor impacted FI when ML is activated.

Production order variance and purchase variance go to one business area.

Hi Experts,
I have a issue while Purchase order we have ordered 3000 qty and while goods receipt we posted 300000 qty and same was issed for prodction order instead of 3000 and got variance. Then afterward purchase order qty was rectified with correct qty then purchase variance happed. The production order variance is getting offsetting by purchase order variance and no effect on gross profit.
Now my question is production variance is going one business area and purchase variance is going another business area. It should not be like that. Both should be showed only one business area. Please provide solution.
Thanks in advance.
Balu

Dear Balu,
You can try OKB9 wherein you need to select the indicator 'BAlrn' against the cost elements of Purchase price difference account. Then select the line item and click the folder 'Detail for business area/valuation area' and input your business area. Thereby you can capture this variance in same business area, even if any other business area is entered or derived differently.
Further, if your production variance account is also a cost element, you can direct the postings to the same business area, we can do the same as explained above. If not, we have to think of another configuration or work around. Pl let me know.
Trust this helps much!
Regards,
Ashok SINGH

Purchase order price variance and quantity variance

Hi All ,
     I am working on a report development where we need price change , value change and quantity change in the report along with net value (ekpo-netwr) .
    Can anybody suggest me tables in ECC where the changes (price,quantity and total value ) are captured ??? and if there is any BI content datasource which can satisfy this requirement.

Hi All ,
     I am working on a report development where we need price change , value change and quantity change in purchase order in the report along with net value (ekpo-netwr)
    Can anybody suggest me tables in ECC where the changes (price,quantity and total value ) are captured ??? and if there is any BI content datasource which can satisfy this requirement.

Production variance in COPA

Hi All,
We are settling production variances to COPA and We have 3 values fields in COPA,Material Variance,production labor variance and Other variance.
Variance categories are mapped to material, labor variance and others value fields.but i dont see any labor variances in Variance value field.i have reviewed and this is becuase of Variance categories.which are not one to one mapping to value fields.
we have 9 Variance categories mapped to 3 value fields.
client requirement is labor variances to settled to Variance value field,material variance to Material value field and Overhead and other variances to settlement others value field.is this possible?if yes.how can i do this?
Any help is appreciated.
Thanks,
Anusha

Hi,
As explained earlier by other forum colleagues,variances captured at production can be assigned to COPA under value field.This assignment is happening through PA transfer structure for variance settlement.
Normally this can be defined broadly into 2 categories : 1.Cost element and 2.Variance categories.
After looking at your requirement,your main interest is in cost element based production variance push to COPA for reporting.i.e.Labor variance.
Production order shows this variance under secondary cost element labor and difference between target/actual.COPA transfer structure doesn't push 2 seprate values (target/actual) ,whereas only delta gets posted.
I feel your requirement is not possible through PA transfer structure.
I would suggest,you push cost center specific labor expenses under new value field,capture cost component wise break up of standard cost udner different value field.
Comparision of cost center expense and labor part of standard cost will provide you expected value.
I know this complex thing to do,so discuss with client do they really want from COPA?
Same reporting they can get from cost cente i.e.expense posted(labor ) and absorbed on product under secondary cost element.
regards,ashok

Input Quantity Variance and Input Price Variance for Production Order

Dear All
I am running variance program KKS2 for calculating variance of production order. for Activity variances are coming under input price variance and input quantity varinace but for material the variances is now shown separately for quantity and price rather it is shown as variances total amount. Can someone help me in know why material quanitty variance and price variance not shown separately
Regards

How does input variance and output varia.nce will be calculated on the settlement of production order after TECO.
VARIANCE CALCULATION DEPENDS ON CONFIGURATION IN THE FOLLOWING AREAS,
1) VARIANCE VARIANT - DETERMINES WHAT VAREIANCE CATEGORIES ARE CALCULATED, E.G MATERIAL PRICE , USAGE, LABOUR RATE , USAGE VARIANCE ETC..
2) TARGET COST VERSIONS
3) VALUATION VARIANT FOR WIP AND SCRAP
Can we check in KOB3 or COOIS.
KOB3 - YES
COOIS - CHECK IN COST REPORT

Actual Activity allocation and Planned and actual activity comparison issue in Product Costing

Friends,
I have tried to explain the issue i am facing currently under Product Costing......
1.Cost Component Structure
10 – Material
20 – Labour
30 – Diesel
40 – Electricity
2.KP26 – Planned under Fixed Price
Labour – 2.0 HR
Diesel – 1.0 HR
Electricity – 5.0 HR
3. When I run CK11N system collecting correct rates for all activities (Costing Lot Size- 1)
Like;
1              E              LAB10    994310                  2.00        2.00        AED        1.0          HR Labour Cost New
2              E              DIE20    994320                  5.00        5.00        AED        1.0          HR Diesel Cost New
3              E              ELE30    994330                  1.00        1.00        AED        1.0          HR Electricity Cost
4              M            1100000042                          5.00        0.00        AED        1              PC RAW MATERIAL BAKERY CONSUMED
5              G            994201                                0.00        0.00        AED                        Depriciation Cost
6              G            994202                                0.00        0.00        AED                        Sales & Distribution Cost
                                                                          13.00                    AED
4.When I do process order Cost analysis for the produced goods it shows me different figures as my
BOM – RM is 1100000042 1 Quantity
Routing – All activity time is 1 Hr
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            13.00-
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      1.33
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      3.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      0.67
                                                                                                                                          2.67- AED
Note :- As per my understanding it should be
    Labour Cost New                                            2.00
                Diesel Cost New                                              5.00
                Electricity Cost                                                1.00
5.Now after Process Order confirmation
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042            5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071            00.00
994310                  Labour Cost New                                              CBAKYPDDXB/LAB10      4.00
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20      5.00
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30      2.00
                                                                                                                                          16.00
6.For Month end actual Activity calculation and load the activaty actual rates on product
I have configured the system in below manner
1 Work center = Mapped to 1 Production Cost center
Three Different Activities mapped to Secondary Cost Element with 43 Category
For Electrictity Activity assesment from Primary to secondary 1 more cost element created with
      Category 42 Like; 994215-Electricity Cost All
One Actual Assessment has been configured to allocate Electricity cost from Primary Cost element to
      Product/Order
7.Assessment Cycle Details
Controlling Area      1000 Controlling Area
Cycle                ZELE01                  Status    Reviewed
Start Date 01.01.2014 To 31.10.2014
Text                  Elec. Cost Allocation to PROD
IND- Interactive
Assessment CEle       994215      Electricity Cost All
Sender
Cost Center    CBAKYDXBAD
Cost Element 40204
Receiver
Cost Center    CBAKYPDDXB
Tracing Factor
Var.portion type – Actual Activity
Selaction Criteria
Activity Type - ELE30
Receivers Tracing Factor
Cost Ctr Factor per        100
CBAKYPDDXB 100
8.I have received the actuall electricity bill for 1100 AED and the same has accocated through KSU5
After Cycle run when I follow below procedure
KSS2 Actual cost splitting
CBAKYPDDXB                    Production Dxb                LAB01                    183.33
CBAKYPDDXB                    Production Dxb                DIE02                    183.33
CBAKYPDDXB                    Production Dxb                ELE03                    183.33
CBAKYPDDXB                    Production Dxb                DIE20                    183.33
CBAKYPDDXB                    Production Dxb                ELE30                    183.33
CBAKYPDDXB                    Production Dxb                LAB10                    183.35
                                                                                                                1100.00
Issue – System Split Electricity cost between all the activities assigned to Workcentres Cost Centre.
But I want to post that cost only to ELE30 Activity and not for all
When I RUN KSSI for actual Price determination system shows
OTy        Object                                  Name                  AUn                Act Qty      Total price    Price (Fixed)              PUnit
ATY        CBAKYPDDXB/DIE20        Production Dxb      HR                  5.0          366.66                  366.66                    10
ATY        CBAKYPDDXB/ELE30        Production Dxb      HR                  2.0          916.65                  916.65                    10
ATY        CBAKYPDDXB/LAB10        Production Dxb      HR                  2.0          916.75                916.75                    10
                                                                                                                                                      2200.06
2200.06 is almost double than 1100.00 which is actual electricity cost and the same is actually determined for all the activities.
After revaluation of the process order system posting below values
40002                    RAW MATERIAL BAKERY CONSUMED          1005/1100000042                            5.00        5.00
40015                    COST OF GOODS MANUFACTURED              1005/4400000071                            13.00-    13.00-
994310                  Labour Cost New                                            CBAKYPDDXB/LAB10                      1.33        183.35
994320                  Diesel Cost New                                              CBAKYPDDXB/DIE20                      3.33        183.33
994330                  Electricity Cost                                                CBAKYPDDXB/ELE30                      0.67        183.33
                                                                                                                                                          2.67-      542.01
Production Variance is posted as 542.01….
I strongly believe there is some issue in configuration for activity allocation….
Main issue is
Point No. 4 – Different Figures in Process Order Cost Analysis
Point No. 7 – Assessment cycle run
Point No. 8 – KSS2 and KSII for Actual cost Allocation and Production variance…
Friends… I have tried to explain maximum please help me to understand the concept or missing configuration/Process.
Thanks
Sagar Chinchkar

Dear Rajneesh,
I have made the changes as suggested....
It seems now my Order Cost analysis and Product cost analysis are showing the same figures.
I have also maintained cost center splitting structure for ELE30 Activity allocation.
Structure Z1
Splitting structure for AT
Assignment 10
Electricity Cost
100
Allocation for ELE
Cost Element
994215
Activity Type
ELE30
Splitting Rule
100
Allocation for ELE
12
Activity quantity
Version 0
In my case actual activity confirmed is 3.1 for 2 orders in period 5
Order 1 - QTY 2
Order 2 - QTY 1.1
Total actual Electricity exp is 1150 in period 5
followed procedure to post actual activity on product is mentioned below
KSS2 Actual cost splitting - Result as expected 1150 for ELE30
KSII Actual price determination - Result as expected 3.1 actual confirmed QTY for ELE30 with actual price
       QTY 3.1         Tot Price 3,709.68        Planned(FIX) 3,709.68     Per Units 10
       (System is doing 1150/3.1*10=3709.68)
    3.CON2 Actual revaluation of orders
      Here while reevaluating the Process Orders system calculation is different
Order 1 - QTY 2 -   558.00
Order 2 - QTY 1.1 - 407.56
Total -                    965.57
     4. After CON2 system is changing the value of other activities like
     LAB10 - Actual confirmed Value 10 to 0
     DIE20 - Actual confirmed Value 10 to 0
Which should not be the case....
                                                                                                              PL     Act     Var
40002
RAW MATERIAL BAKERY CONSUMED
1005/1100000042
10.00
15.00
50.00
40015
COST OF GOODS MANUFACTURED
1005/4400000074
26.00-
26.00-
994201
Depriciation Cost
WMBDDEP01
1.00
0.00
100.00-
994202
Sales & Distribution Cost
WMBDS&A01
1.00
0.00
100.00-
994310
Labour Cost New
CBAKYPDDXB/LAB10
4.00
0.00
100.00-
994320
Diesel Cost New
CBAKYPDDXB/DIE20
10.00
0.00
100.00-
994330
Electricity Cost
CBAKYPDDXB/ELE30
2.00
408.06
20,303.00
If we want to just post Electricity cost based on actual Electricity expenses and Labor and Diesel are based on planned activity rates.
What setting is required in current system.....
Million thanks in advance....
Regards
Sagar Chinchkar

Hi production variance

hi
help me on report
report for displaying actual start date,finish date,planned quantity,actual quantity and production variance.

Hi,
In OBYC you have to maintain gl account for production variance in PRD Transaction event key. If you want this field is to flow to COPA Then in PA Transfer structure you have to maintain allocation structure with this value field assignment.
Regards,
Sreekanth

Product Variance Calculation

Gurus,
How do we calculate Product variance?
What is the procedure / process?
Where can the effect be seen?
Edited by: Bhatia on Oct 15, 2008 6:44 PM

Hi,
Variance Calculation
As long the production order is not fully delivered or flagged Technical Complete the remaining order balance is treated as WIP. Otherwise the order balance shows up in variance calculation.
If a lot-based product-controlling WIP, is valuated at actual costs. The WIP is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered).
In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling orders never have work in process and variances at the same time.
Variance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
In this way you can find out which variances occurred between the value of the delivery and the actual costs and you can find the reason for the posting to the price difference account for materials with standard price control.
Variances from production (target version 1)
Variance calculation compares the actual costs incurred for the production order with the target costs for the production order and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
This enables variance calculation to find out which variances occurred between the time the production order was created and the end of the production process.
Variances from planning (target version 2):
Variance calculation compares the planned costs for the production order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
This enables variance calculation to find out which variance occurred between the time the standard cost estimate was created and the time the production order was created.
Variance categories:
The system assigns every variance to a variance category. The variance category indicates the cause of the variance (such as price change, lot-size variance). Variances are updated to the information system and passed on to Profitability Analysis according to variance category.
You differentiate between variance categories on the input side and on the output side:
u2022     Variances that occur because of goods issues, internal activity allocations, overhead and G/L account postings are displayed on the input side. Price variances, quantity variances, resource-usage variances and input variances are displayed on the input side.
u2022     Variances that occur because too little or too much of the planned order quantity were delivered, or because the delivered quantity was valuated differently are displayed on the output side.
Variances on the output side occur when you deliver using a price that differs from that found by dividing the target costs and the delivered quantity. If you deliver using the standard price, a variance can occur when the order lot size differs from the costing lot size. This is displayed as a lot-size variance.
For config
3.1.4.2     Variances & Settlement
Variance Calculation determines differences between the actual costs incurred on a production order and the standard costs of the material produced. Variances are calculated not at once, but for different variance categories. The variances computed are then transferred to CO-PA.
3.1.4.2.1     Define Default Variance Keys for Plants
Use
The Variance Key is part of the order header and controls variance calculation. The system selects the value set by this step as default value when a material master is created. From the material master the variance key then is transferred to the order when an order for the material is created.
Procedure
1.     Access the activity using one of the following navigation options:
Transaction Code     OKVW
IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling  Product Cost by Order  Period End Closing  Variance Calculation -> Define Default Variance Keys for Plants
2.     Make the following entries:
Plant     Variance Key
BP01     000001
BP02     000001
BP03     000001
BP0X     000001
3.1.4.2.2     Define Target Cost Versions
Use
The target cost version controls various parameters related to calculation of target costs in variance calculation. In variance calculation, target costs are needed as a comparison to the actual costs incurred.
Procedure
1.     Access the activity using one of the following navigation options:
Transaction Code     OKV6
IMG Menu     Controlling Product Cost Controlling  Cost Object Controlling  Product Cost by Order  Period End Closing  Variance Calculation  Define Target Cost Versions
2.     Choose New entries and enter the following values or copy from default settings of CoArea 0001 to BP01:
CoArea     TgtCostVsn     Text     Variance Variant     Control Cost     Target Cost
BP01     0     Target Costs for Total Variances     001     Actual Costs     Current Std cost Est
BP01     1     Target costs for production variances     001     Actual Costs     Plan Costs / Preliminary Cost Estimate
BP01     2     Target costs for planning variances     001     Plan Costs     Current Std cost Est
3.1.4.2.3     Create Settlement Profile
Use
The settlement profile controls various parameters related to settlement.
Prerequisites
Allocation Structure
Procedure
1.     Access the activity using one of the following navigation options:
Transaction Code     SPRO
IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling  Product Cost by Order  Period-End Closing  Settlement  Create Settlement Profile
2.     Choose New Entries and enter header data. Then for each new entry choose Details and enter remaining data.
3.     Overview of data records:
Profile     Text
YGPI00      BP Process Order w/o CO-PA
YGPP00     BP Production Order w/o CO-PA
YGPI00     YGPP00
Actual costs/costs of sales
To be settled in full     X     X
Can be settled
Not for settlement
Default Values
Allocation Structure     A1     A1
Source Structure
PA Transfer Struct.
Default object Type
Indicators
100% Validation     X     X
%-Settlement     X     X
Equivalence Nou2019s     X     X
Amount Settlement
Var. to co. bsd. PA
Valid receivers
G/L account     N     N
Cost center     O     O
Order     O     O
WBS Element     O     O
Fixed asset     N     N
Material     O     O
Network     N     N
Profit. Segment     N     N
Sales order     O     O
Cost objects     O     O
Order item     O     O
Business proc.     N     N
Real est. object     N     N
Other parameters
Document type      SA     SA
Max.no.dist.rls     3     3
Residence time     3     3
You have to assign Variance Key in material master for semi-finished and Finished goods in costing 1 tab also.
To Execute
KKS1-Collective Variance calculation
KKS2-Individual Variance calculation
CO88-Collective settlement
KO88-Individual settlement
Thanks,
Rau

Qty and Date Variance using Purchasing InfoCube

Using Purchasing Cube, I want to find out the Qty Variance and Date variance,
Iu2019m calculating these using GR Posting date and Requested Delivery Date and GR Qty and Qty in UoM.
Iu2019ve the following doubts:
1.     In order to calculate the Variance, do we need to filter the data pertaining to any particular BW Transaction Key (0PROCESSKEY) since we donu2019t want Goods Issues (can be Purchase Returns or intra company Stock Transfers ), If so what are the values for the Process Key to be considered for filter.
2.     Though the Qty key figure matches the Requested Qty, the PO status is u2018Openu2019. What could be the possible reasons?
3.     The qty. and days variance for the POs already received can be calculated. But what should be done incase of POs for which Goods are not yet received? Again in that scenario, we can have two cases: Delivery Past Due and Delivery Date in Future. How to tackle these 2 cases. As per our Requirement, we have to calculate the difference between System date and Requested Delivery Date incase of Past Delivery Date so that we can have the variance as of System Date. Like If the Delivery Date is 25th Nov, if we run the Query on 28th, it should show 3 days late and if run on 29th, it has to be 4 days if still undelivered. Please give me the code to be written in Transformations.
We have not yet decided what has to be done in the second case i.e. Future Delivery Date. Please guide me what is the best option in that case.
Thanks,
Aryaman

Hi,
1. In order to calculate the Variance, do we need to filter the data pertaining to any particular BW Transaction Key (0PROCESSKEY) since we donu2019t want Goods Issues (can be Purchase Returns or intra company Stock Transfers ), If so what are the values for the Process Key to be considered for filter.
You need to add Z-Keyfigures and then write Routines based on Process Keys in Update Rules/Transformations and filter the required Process Keys, you need to find required Process Keys in ECC, SPRO-->Reference IMG an dthen search for BW Transactional Key and see it disuss with MM FUnctional COnsultant and Identify it.
2. Though the Qty key figure matches the Requested Qty, the PO status is u2018Openu2019. What could be the possible reasons?
I faced the problem with 2LIS_02_* datasources so I created new generic data source and used it. Just take only one record with that you track in ECC. You must take MM Consultants help, they will guide you.
3. The qty. and days variance for the POs already received can be calculated. But what should be done incase of POs for which Goods are not yet received? Again in that scenario, we can have two cases: Delivery Past Due and Delivery Date in Future. How to tackle these 2 cases. As per our Requirement, we have to calculate the difference between System date and Requested Delivery Date incase of Past Delivery Date so that we can have the variance as of System Date. Like If the Delivery Date is 25th Nov, if we run the Query on 28th, it should show 3 days late and if run on 29th, it has to be 4 days if still undelivered. Please give me the code to be written in Transformations.
We have not yet decided what has to be done in the second case i.e. Future Delivery Date. Please guide me what is the best option in that case.
Once you have Qty and Dates from Transactional Data then it is easy to calculate the Date Varience and Qty varience, see the follwoing URL it is having one article How to Calculate Meterial Aging whcih will give how to calculate the differnce..
http://wiki.sdn.sap.com/wiki/display/profile/Surendra+Reddy
Thanks
Reddy

Price and quantity variance

Hi guru's,
Can any body explain how to find out price variance and quantity variance?thanx in advance

hi,
for price varience we need to assign gl account for transaction event key prd in obyc settings
Thanks & Regards
phaneendra

Co03 quantity and price variance

Hi in Co03,
give order number enter then goto->cost->analysis in the out put
i want to know how the quantity variance and price variance are being calculated please let me know

Hi Revanth
Please find the Help From SAP
[SAP HELP|http://help.sap.com/saphelp_dimp50/helpdata/EN/90/ba6228446711d189420000e829fbbd/content.htm]
[SAP HELP|http://help.sap.com/saphelp_dimp50/helpdata/en/90/ba6b15446711d189420000e829fbbd/content.htm]
Hope they are Useful
Thanks
Kalyan

Settle Production Variances to COPA- Cost elements and Value fields

Dear All,
I know this question has been discussed in the past, but I have one specific doubt regarding this topic.:
When assigning cost elements to variance categories in t-code KEI1, how do we figure out what combination of cost elements (in the top half of the screen) constitute Input Price Variance, Scrap variance etc (in the bottom half of the screen)? I know the net of the postings on those cost elements tells us what variances we are looking it, but how do we get the cost elements (group) for let's say, 'Input/Output Quanity Varinace or 'Lot size Variance' ?
Or is this a futile exercise? May be I should just create three types of variances: Labor, Machine and Overhead. And I know what cost elements (net of the postings) would, in total, make up the $ variance in each of those categories. I can then use them in my report painter reports.
Please help clear the fog for me.
Ajay?
Thanks a lot,
Deepak

Hi Deepak,
Welcome to SDN!!
There are 2 ways of updating variances in COPA... I Prefer the 2nd option always...
1. Category wise variances (Input Prc, Usage var, etc) - Here, create a Cost ele group, where in you include all the Cost elements that can be posted to the Prod orders
For the sake of simplicity, you can include Cost elements 1 to 99999999 in the Cost element group...
2. Cost Comp Structure wise variances -
a. Create as many assignment lines in PA Trf Structure as in your Cost Comp Str...
Eg: If your Cost Comp Str in OKTZ has Raw Mat, Labor, Overhead - Create 3 Assignments in PA Trf Structure..
b. Assign the same cost elements in the SOURCE as in the Cost Comp Str
c. Choose the radio button "Costs/Revenues" in your assignment line, instead of " Variance on Production orders"
d. Assign each Assignment line to a separate Value Field
br, Ajay M

Production Variances of semifinished goods in COPA

Hi,
We are using Costing based COPA, which is updated at the time of billing.
The production variances are posted to COPA when the settlement of the production orders are done.
The production variances if brought within the purview of COPA report (based on sales), the plan vs actuals can be compared. However, in case of actuals, the production variances would appear only to the extent of tha particular product sold (that too, to the extent of qty produced and not qty sold)..
I have two issues:
1. Whether system can explode the BOM and bring in the production variances of semi-finished goods into the total production variances, if I drill down only on the Finished product sold. The total actual cost would include the variances of relevant SFG also. Is this possible, if so how?
2. Whether, by bringing production qty and sales qty, the proportionate prod variances be calculated (total prod var * sales qty / prod qty). This can surely be done by inserting formulae. But is this justified from business point of view?
Please help me resolving this issue..
Edited by: Swapvik on Mar 17, 2009 7:11 AM

Hi Swapvik,
Issue No.1:
When you are using only Standard Costing in CO-PC, variances will not get rolled-up to the next level. Only costs get rolled-up. As per your requirement, when you see the report in COPA, when you see the details of FG and you want to see the variances of it's SFG also, this would be possible only if you have activated Material Ledger. If ML is active, variances also get rolled-up along with costs.
Issue No.2:
The ultimate purpose of bringing Variances into COPA and making part of them in a report is to consider COGM subject to the variances. Though it is not 100% justified, it gives you the most appropriate analysis compared to where you don't consier the variances at all. If you don't consider variances there, that means, you are considering only COGM and not taking the effect of variances, which will definitely not a correct picture of Profitability.
Pls revert back for further explanation...
Srikanth Munnaluri

COPA Configuration for settlement of Production Variances

Hi,
Can anybody explain me detail configuration steps required to settle production variances to COPA in case of Make to Stock Scenario.
Helpful answers will be rewarded with points.
Regards
Milind Nair

Hi
These are broadly the requirements for settling production variances:
1.) The production variances first need to be calculated in CO-PC.
2. Your PA transfer structure must contain assignments of variance categories to COPA value fields.
3. In the settlement profile, you define the variances to be settled and profitability segments should be a valid receiver.
4. The settlement rule to profitability segments is created automatically based on the information available in the production order (product, product group, plant and so on).
5. You must have maintained number ranges for record type "C".
6. The desired form of Profitability Analysis (costing based) must be active in the relevant controlling area.
Hope this is useful
S Jayaram

Activity variance and production variance seperate in COPA

Similar Messages

Maybe you are looking for