Price/Quantity Variance in Production Order

Hi
How does Price and Quantity Variances are calculated for a Production Order?
Regards
Kailash

Hi Kailash,
The variances relating to Input Price and Input Quantity are calculated on following basis...
Input price variances
Input price variances are caused by differences between the planned and actual prices of the materials and activities used.
The system can only calculate input price variances if quantities were specified in addition to the planned and actual costs. The following conditions must be met for this:
You need t turn on the Material origin indicator in the costing view of the master record of all materials that have a large influence on your costs. Uniform units of measure must be assigned to all input materials. That is, material costs can only be totaled under a cost element when such costs are carried under the same unit of measure.
If you have defined primary input price variances in Customizing, the system will calculate input price variance percentages and update them with reference to the operation. When you start the variance calculation process at the end of the period, this data will be canceled and the input price variances calculated by multiplying the difference between the planned price and the actual price by the confirmed quantity. If the confirmed quantities are incomplete or do not exist, input price variance percentages will be shown.
Input quantity variances
Input quantity variances are caused by differences between the planned and actual consumption quantities of materials and activities. You need to turn on the Material origin indicator in the costing view of the master record of all materials that have a large influence on your costs.
As a whole, if you want to see input quantity variances and input price variances, you must make the following settings:
Turn on the Material origin indicator in the costing view of the material master record.
Turn on the Record quantity indicator in the cost element.
When it calculates the variances, the system does not check whether the Record quantity indicator is turned on. If quantities are not recorded, however, it is not possible to calculate quantity variances. If the Record quantity indicator is turned on, a warning message is issued if you do not enter a quantity in consumption postings.
Pls revert back for further explanation....
Srikanth Munnaluri

Similar Messages

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

Order price quantity variance

Hi
What are the restrictions that can be maintained for order price and quantity variance?
Regards

Hi,
Go to SPRO > MM > Purchasing > Purchase Order > Set Tolerance Limits for Price Variance (It will be considered during PO)
The standard SAP System supplied contains the following tolerance keys:
o   PE   Price variance, Purchasing
    -   Tolerance limit for system message no. 207. This message appears
        if the specified effective price exceeds the predefined
        tolerances when compared with the material price.
o   SE   Maximum cash discount deduction, Purchasing
    -   Tolerance limit for system message no. 231. This is a warning
        message, which appears when the specified cash discount
        percentage exceeds the predefined tolerances.
Go to SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Set Tolerance Limits
o   B1 ( order price quantity variance with error message)
o   B2 (order price quantity variance with warning):
o   VP (variance from moving average price)
Go to SPRO > MM > Logistics Invoice Verification > Invoice Block > Set Tolerance Limits
BR   Percentage OPUn variance (IR before GR)
BW   Percentage OPUn variance (GR before IR)
DQ   Exceed amount: quantity variance
DW   Quantity variance when GR qty = zero
PP   Price variance
PS   Price variance: estimated price

GR quantity more than production order quantity triggering cost difference

Hi Gurus,
We have observed a scenario where the cost(price) dfference account getting hit whenever the GR quantity is greater than the production order total quantity. The dollars posted to this acount are directly propotional to the difference between the GR quantity and the production order quantity.
The total quantity specified in production order is 1 M2U and GR quantity is 1,000 M2U.Material price is $195.65.
Accounting Document;
Inventory account           - 195.65
Offset account                - 200.00
Cost difference account -    4.35
If we do GR for less than or same quantity as in the production order, this account is not getting triggered.
Any idea what is causing this scenario? I really appreciate if you can share with any SAP note related to this.
Thanks,
Mano.

Hello Gurus,
One more observation is,
The palnned costs and actual costs are always different when dealing huge quantities. But the cost difference account is only getting triggered if the actual quantity is more than the palnned quantity.
And,
when the difference between atual quantity and palnned quantity is huge then
Planned costs are booked to the inventory account
Actual costs are booked to the prodcution cost account.
Significant cost variance is booked to the cost variance account.
When the difference between actual quantity is less than/equal to planned quantity is not so huge then
Actual costs are booked to the inventory account
Actual costs are booked to the prodcution cost account.
Is this a standard behaviour?
Thanks,
Mano.

Expected yield variance in production order creation

Dear sir
pl tellme ,where i have to capture the expected yeld variance.
for thisbelow given reasion i have to capture the expected yeld variance
Total confirmation quantity not equal to planned confirmatio.
The confirmed quantity for this operation is not equal to the planned quantity to be confirmed
The quantity confirmed until now for this operation is greater that the planned quantity to be confirmed.
pl tell me
thanks and regrds
Baswaraj

Hi raj,
At the time of order creation system shows Delivery tolerance in goods receipt tab since you maintained at Material Master level But Expected yield variance will be Zero (System doesn't know how much you are going to confirm).
After Doing Final confirmation with clear reservations indicator and goods movements, System calculates the difference between actual order quantity and confirmed quantity at operation level in percentage. System updates the same in Production order. In your first order you got 0.2-. That means based upon operation yield confirmation, your expected yield i.e. GR quantity is 0.2% less than the order quantity. At the time of GR, system proposes the quantity you confirmed at operation level, but not the order quantity.
Where as coming to second order your conformed quantity is same as your order quantity. Hence system is not showing any expected yield variance in production order.
Check it with different order quantities.
Regards,
Venkat.V
Note: At the time of operation final confirmation in CO11n, if you select Confirmation Type Final confirmation and the Indicator Clear Open reservations, Irrespective of operation quantity UOM system proposes Expected yield variance in CO02 after conformation.
Edited by: Venkat V on Nov 13, 2008 10:48 AM

Report for comparing Variances of production order types

Hi All,
I want a report in which i can see variances of production order type wise and can compare that with other types also.
means my input should be as follows
            1) Company Code/controlling area
            2) Plant
            3) Order type 1
            4) Order type 2 and so on.......
like wise I want to develop a report.
I have created summerization hierarchy but it show order type wise data.
i want data from multiple order type in a single report.

Hi Sachin,
I have attached screenshot for your reference. Please find it.

How to compare the variances of production order type and get report

Hello All,
I want to compare the variances of production order type wise.
for ex. i want variances of order type PP 01 and PP 02 in a single report.

Hi Sachin,
You have to maintain summarization hierarchies to achieve this.
1. Maintain summarization hierachies with hierarchy level - order type in the t.code.KKR0
2. Generate the hierarchy in KKRC
3. Run the report KKBC_HOE
Regards,
Mukthar

GR quantity check against Production Order in MB31

Hi Experts,
How to check GR quantity against Production Order (101) can not be greater than Confirmation quantity for the Production Order in MB31.
Regards,
Praful Mankar

Hi Praful,
Use user exit MBCF0002, here put condation that check AFEU table (confirmation table) and allow
that quantity only to do GR
and it will triger at the time of MB31
Regards
Girish

Error while calculating variances for production order

Hi Gurus,
while calculating variances for production order i am getting the following error
"Cannot calculate scrap variances" ( Error message)
" no standard value estimate for material" (Warning message"
A standard cost estimate exists for the material at the date mentioned in the error in released status.
Please give solution for the error.
Thanks in advance n Regards
Arul.

Is there an itemization, generated for the cost estimate used to calculate the target costs?
Does the material components listed in the BOM of the cost estimate used to calculate the target costs, assigned to the operations in which they are used. Otherwise it is not possible to correctly report the variances and scrap when operations are confirmed.
Does the order for which the variances are calculated have a valid variance key. ?
Does the order have the status DLV (delivered) or TECO (technically completed). If the status was withdrawn, any variances and scrap variances are canceled.

Quantity mismatching in production order

Hi PP experts,
The delivered quantity for a production order in CO03 is 53 while Goods receipt has been done for 59 materials. You can refer the below screen shots.

Hello
Please implement and run the report ZPCON_076D, from the following note, in order to correct such inconsistent orders:
1352231 - Correction: Goods receipt quantity and value in order
This repor sum the posted goods movement quantity and updates the delivered quantity on the order.
BR
Caetano

About the variance of production order difference.

hi all
now i am practicing producting. i have closed the production order by technocially completed.and the variance (difference between standard cost and actual cost) will be settled to production order difference account through our customization.
when we are doing the delivery and billing, it is taking the standard price. but that variance is cost of this Finished product,but it is not including when we are doing delivery and billing. the variance is shows in P&L debit as a expenses.
When the SD people defien the sales price in "PR00", do they consider this variance also?
please let me know about this. can u give me the complete details.

Hi
I suspect based on the price control 'S' maintained for FG, the billing would happen at this standard price. Any variance in production would be settled to a separate variance account and would be available for analysis, based on which you could alter the standard price for the following period
Thank You,

Expected yield variance in production order

Hello,
The issue is when we confirm the order operation wise, an error Message no. RU139 is coming, however the production order "expected yield variance" field is 4 and the order quantity is 1.
GR is not taken place, hence delivered qty field is 0.
The solution i have proposed is to check the "Unlimited Overdelivery " check box in production order screen to allow the excess confirmation.
please suggest, How the field "Expected yield variance" is filled up in production order? because of this field, the error RU139 is encountered though we have not entered yield in confirmation (ZERO yield is given).
The confirmed quantity is 5 (here thre is uncertaininty that how the system allowed to enter 5 when the check for over delivery is set as an error)
please suggest or close the thread
Regards,
Santhosh
Edited by: SANTHOSHCH on Jul 31, 2010 7:10 AM
Edited by: SANTHOSHCH on Aug 6, 2010 5:38 AM

dear santhosh,
Check in opk4 confrmation parameter, In the genereal valid setting tab, over delivery, Change the over delivery not checked to Error when over delivery tolerance is exceeded. If U make this setting, system won't allow the overdelivery while confirmation
Regards,
Sundaresan

Planned material price in case of production order for sales order (MTO)

Hi,
In case of production orders created for sales order, the planned price for a component (BOM) material gets picked as per following:-
1. If there is no entry in EBEW for the component (that is, there is no previous GR for the component) for that sales order, then plan price is picked up on the basis of planned costing variant.
2. In case there is an entry for the component in EBEW (there has been a previous GR for the component with reference to the sale order) then the plan price for the component is taken from the EBEW table (first GR price) and system ignores the costing variant.
The above is as per my observation. Please validate if this is correct or not.
The requirement is that even if there has been a previous GR for the component (there is an existing entry in EBEW) the system should take the plan price on the basis of costing variant and not from the EBEW table.
How can this be achieved? Is there a user exit that can force the system to read the costing variant before looking into the EBEW table?
BR
Abhi

Hi Ajay,
Yes i had considered it but I'm not sure If it will help.
Because the main problem here is that system is ignoring the costing variant itself and instead picking the price from EBEW table. So changing the costing variant (validation variant) may not help.
Moreover i don't want to valuate with my own strategy. I want the plan price to be equal to standard price of material from material master. Basically MBEW instead of EBEW.
Any clues?
BR
Abhi

Quantity Variance in Purchase Order

Dear All
I have a requirement where the system should display error if the quantity exceeds Purchase Order quantity however there should be seperate treatment.
ie.If the quantity variance upto 5 percent is allowed for raw material but for spares material no variance is allowed.
Regards

Hi,
Go to SPRO > MM > Purchasing > Material Master Define Purchasing Value Keys - Here define the Purchasing Value Key with Underdelivery and Overdelivery Tolerances as per the requirement and maintain the same in Purchasing view of material master. Same will get copied to Purchase Info Record (If created manually) or in PO directly which will have control over GR QTy as compared with PO QTy.

Change input quantity of a production order in SAP - PP

Hello,
I am working in a custom code where one of the steps is to create production orders basically based on a product, workcentre and quantity for what I use 'COXT_BAPI_ORDER_CREATE' function module.
Now I have a new requirement which is to be able to change the input component quantity to a different value than the output (similar to what you can do in transaction CO01, and like what the on-line help claims you can do).
This new value should be on top of the ratio that is possible to specify in the BOM (i.e substract 5000 KG to what ever is in the input node after creation of the order).
The GUI allows for this so I assume there is a way to do it in custom code as well, but has not find the way to do it or function to call.
Can you advise on how to change the input quantity value without affecting other info of the order?
Thanks
Regards,
Update: found this other thread Change components and Routing of production order
Edited by: Mauricio Pego on May 3, 2011 6:00 PM

Hi,
The requirement can be met via BADi - MD_DISPLAY_ELEMENT (method - CHANGE_MDEZX_EXTRA).
Give the specification your technical person & the same can be done.
Regards,
Vivek

Price/Quantity Variance in Production Order

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