Production variances

Hi,
Once after we assign all the prodcution variances flow to CO-PA, how can we can we see those variances from CO-PA side?
Thank you,
Nivi

Hi
You can view the posted items through TCODE KE24 line item display. Here enter the values for the selection parametrs like company code, period and year, material/ product and execute and this will show the list of posted line items. If you drilldown the line item you will see the details.
PA does not haveany standard reports. SO you need to build meaningful reports to view the posted variances.

Similar Messages

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

Profit center report picks production variance posting from prev periods

(This is a repost, from a ill-chosen forum)
Guys I am lost
I am running S_ALR_87013340 : profit center Plan Actual comparison report, on a group of profit centers: the total I got is different from the sum of the individual profit centers in the group: the difference being on my production variance account, and a sales posting that relates to the prior period
I had the same issue last month, with the discrep. only being my production variance account.
but I was expecting something of the sort: it was the first time we closed orders, and SAP closed all orders since the implementation, years earlier
What could cause this?
Thanks for your time, again
KR - Loï

Hi
The Production Variance account is usually not created as a Cost element.. Hence, the PC from the Mat Master is derived into this Line item.... Ideally, the PC from mat master gets copied into the Prod order also... If you change the PC in mat master later on, you can see a mismatch
Whats the situation in your case? The Prod Var account has PC or not or which PC does it have?
Br, Ajay M

Transfering Production variances to COPA

Hi,
I have doubts about transferring Production variances to COPA.
Will this functionality work both for settlement of variances to GL Variances Account and at the same time for settlement of variances to COPA?
From my experience with cost centers and internal orders, I know that if I want to settle an Internal order both to COPA char and to GL Account, I have to make 100% overhead for the costs gathered on IO. Then I can do the settlement in both directions.
Could you please explain to me the case of Production order variances settlement? I need to have them both on GL accounts and in COPA.
Best wishes,
Karol

Hi
At the time of settlement of production orders, FI entry also passed as well as variances are also settled to COPA
In FI, variances will be debited (assuming production order debit is more than what it is settled to Inventory at Std cost) and Inventory changes account is credited.
In COPA, depending on the variance categories like Price, qty and their assignment to value fields, this amount is transferred.
For eg, if prodn order actual costs is say 12000 and is settled to Inventory is 10000 (at std cost), and the difference is 2000 and if this difference is due to Price (800) and qty (1200).
Hope this is useful
S Jayaram

Product Variances in COPA for SFG

Hi Freinds,
I am facing a issue relating to production variances arising from settlement of production order for SFG.
As SFG is not sold in my case and is being used for producing 2-3 types of Finished goods, therefore client wants that the production variance of SFG should be allocated to the FG's based on Sales Quantity.
However as all production variances are being settled to COPA, SFG production variannce are also coming to COPA, now I am not able to fine in COPA if there is anything to support this.
Thanks

Hi
The answer to your question is both YES & NO
It is possible to allocate SFG variances upon FG using top down distribution in COPA (KE28)... However, for that, you should have "Some thing in Common"
"Some thing in Common" means - Your SFG and FG should have a relation in SAP where by you can identify that they co-relate.. In one of our clients, we set up the system in such a way that the related SFG and FG shared the same material group...
So, while distributing in COPA (Top Down Dist), we specified that Variances Pertaining to Mat Type = HALB & Mat Group= XX should be allocated to Mat Type = FERT and Mat Group = XX...
Do you such a co-relation established in your system?
Regards
Ajay M

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?

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

COPA Production Variances

Hi,
Would Production variance GL account be a cost element for the purpose of flowing data to COPA?

If you have activated Costing based COPA then NO
If you have activated Account based COPA then YES
Enjoy.
Venkat.

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

Production Variances in COPA CO-PA

Hi Gurus
Production variances are genrated in COPA at the time of Prod Order Settlement.How can we display these in COPA reports apportioned according to Products
If not what is the best practice to present Production Variances in COPA reports

Hi,
The production variances flows to copa by creating PA transfer structre in OKOA. their you have to assign value fields to variance categories.after creation of pa transfer str u have to assign it in u r settlement profile.
Thank u
Srinivas

Cost elements set in KEI1 A1 Settle Production Variances?

Dear Experts,
What kinds of cost elements would be set in KEI1 If the PA transfer str. is A1Settle Production Variances?
10     Input price variance
20     Input quantity variance
30     Resource-usage variance
40     Remaining input variance
50     Mixed-price variance
60     Output price variance
70     Lot size-/fixed-cost variance
80     Remaining variance
90     Scrap
Could i say "cost elements that we can see when we do KKS1 variance caluation?
Or else?
Thanks in advance.

Hello,
You NEVER assign cost elements to value fields for mapping the settlement in COPA. Instead of that what you do is in the source tab for the line (eg 10 Scrap) select the radio button called ' varainces on production orders' and input the appropriate variance category eg. eg SCRP. In value field tab you would assign the appropriate value field. There is no need to assign cost elements. When you execute variance calculation the information is captured in the following fields and the same flow to COPA when you assign the variance category to value fields.
PRIV      Input Price Variance
QTYV     Input Quantity Variance
RSUV     Resource-Usage Variance
INPV             Remaining Input Variance
MXPV     Mixed-Price Variance
OPPV     Output Price Variance
LSFV     Lot Size Variance/Fixed-Cost Variance
REMV     Remaining Variance
SCRP     Scrap
The variance calculation is not just a simple difference between the cost elements it is also related to quantity as well.
Kind Regards // Shaubhik

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

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.

Settling production variances when the price control of the material is "V

Hi,
Scenario: 1) Materials are maintained at moving average price.
                2) Production variances need to settle to material and MAP need to be adjusted.
Issue: When the closing stock of the material is less than the negative variance need to be settled from the production order   the system is giving the message "Moving average price for material is negative"
Questions: 1) What is the solution for settlement of negative variance to material when there is no stock?
                   2) Is there is any way to settle these variances to price difference account only when the stock is not available. if stock is available the variance has to adjust the stock, if not settle to the price difference account. Is there anys standard settling for this?
Advance thanks for your help
Regards
Koteswararao Padarti

Hi Rao
You should never have Price Control V for In House made material...
That will ruin your inventory valuation forever.. Consider the eg below if your price control is V
1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and at period end if Qty is lying in stock, 10 variance will also be inventorized
BUT, now consider this
1. 1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
3. You Mfr on Jan 10 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
4. On jan 15, you consume Qty 1 and qty lying in stock is 1
5. In period end, when you do settlement, following will happen
a. For prod order 1: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price will shoot upto 110
b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price (MAP) will shoot upto 120
System wont check whether the qty lying in stock pertains to prod order 1 or 2... It will simply check if the Qty of prod order matches with qty lying in stock. hence, it will keep on inventorizing variance in this case.... and your MAP will touch the sky
Regards
Ajay M

Purchase Price/Production variances GL account

Hi,
When I did GR, the purchase price variance GL account has been posted correctly for the difference between PO price and std price.
However, I found out that after settling the production order via KO88, the variances was also posted in the same GL account. Is it possible to post this to another GL account, say, Production variance. If yes, how do I change it? If its via OBYC, are there rules or general modifications which I have to change?
Thanks to advise.
Regards,
Thess

Hi Thess,
In case of Price Differences arising against Purchase Orders, you don't need to give any Account Modifier in PRD in OBYC.
For the Variances arising against Production Orders, use the Transaction Key PRF.
You can assign two different GL Accounts for this purpose.
Pls find the following SAP Help...
Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price).
Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account.
Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system:
None for goods and invoice receipts against purchase orders
PRF for goods receipts against production orders and
order settlement
Pls revert back for futher explanation...
Srikanth Munnaluri

Production Variance Settlement.

Hello friends,
Hope you all are well!
Is there anyway that I can settle the production variances into different GL accounts at the same time? For example I have $1000 as the variances on my order. It is further divided into $200 for material another $800 for material overheads.
This $1000 is posted into a price difference gl a/c when settled. I would like to capture only the material cost i.e. $200 and post it into a different account. Is that possible? If so, how please explain.
Your help is much appreciated
Regards
Shiv

Hi Shiv
Try this if it helps u in addition to KOB3
For variance analysis you can use report S_ALR_87013127 - in Object list node in cost object controlling.
This is one of the best available reports u can use since it gives variances for all order types in all plants and company codes
Once u select the parameters, go to the layout and select all variances fields listed and save your layout so that u dont have to do it everytime.
I have been providing this to clients and is used for analysis and corrections to orders etc.
Also, there are quite a few reports not only on variance analysis but on WIP but in most of these reports the selection parameter is a single order instead of all orders for a plant which limits the usage.
Let me know if you need any more clarifications
And please assign points as a way to say thanks

Production variances

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