Production variances calculation when using assessment to PP orders

Hi,
I managed to activate assessment to Production orders in BS12.
I activated business transactiun RKIU for PP orders object.
Now it's possible to allocate OH costs from Cost centers to production orders.
However, I have some problem of other nature.
When I do the standard price calculation - the Overhead costs from Production Departament CC are calculated as % overhead using costing sheet. It is done by cost element with cost element ctg 41.
The actual OH costs from Cost centers are allocated using assessment. Other cost elements with cost element category 42 are being used here.
How will the system calculate production variances in this case?
Do u think it is possible to match these two different cost elements?
Will this CE with 41 ctg be considered during variances calculation and if yes - which variance category will it be.
I am uncertain about that, cause in normal cases - activitity CE or materials consumption CE are the same in actual and target. In my case overhead CE are different in actual and in target.
Can u help me with that?
Best wishes,
Karol

It's looks like you are right. I've made production version for configured material and production order created. Thanks.
Due to such a behavior we have to make two different integration models - the first for KMATs and its PDSs and the second for configured variants. And we have to make production versions for all variants.
Am I right?

Similar Messages

  • 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).
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    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)
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    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:
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    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.
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    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
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    Procedure
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    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:
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    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
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    Prerequisites
    Allocation Structure
    Procedure
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    Transaction Code     SPRO
    IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling   Product Cost by  Order  Period-End Closing   Settlement  Create Settlement Profile
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    YGPI00      BP Process Order w/o CO-PA
    YGPP00     BP Production Order w/o CO-PA
    YGPI00     YGPP00
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    To be settled in full     X     X
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    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
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    KKS1-Collective Variance calculation
    KKS2-Individual Variance calculation
    CO88-Collective settlement
    KO88-Individual settlement
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