Variance Calculation In Process order

Dear All Gurus,
We have produt cost by order.
In process order variance calculation I am gatting variance being calculated on Input v/s output costs.
While settlement also same variance is being posted.
I want variance to be calculated target v/s Actual
Please advice
Thanks in advance
Bhushan

I think in production order the variance is calculated between actual costs vs planned costs which is nothing but the input costs minus the gr coss of material produced at std costs.
Is that happenning or not??

Similar Messages

Target cost calculation in Process Order based on Variance Calculation

Hi all,
I have a question on Target cost calculation in Process Order. My understanding is, the Target Costs gets calculated when the confirmation and GR is made for the Process Order.
But if the confirmation/GR is not done, whether the target costs gets calculated for only the activity types after the Variance Calculation (KKS2).
I have two scenarios. In one, the target costs got calculated for the activity types without the confirmation/GR after the Variance calculation.
In another scenario, the target costs are not getting calculated for the activity types without the confirmation/GR if I try to do the variance calculation in KKS2.
SO i want to know which scenario is correct?
Can anyone answer this question?
Thanks and Regards,
Brijesh

Hi,
In general, the target costs are calculated once you deliver the order.
Target costs for the components and the activities are updated only once you deliver the order and the target cost for the finished product gets updated when you do the variance calculation.
Consider your scenario number 1 - you said the target costs got calculated for activity types without confirmation / GR after variance calculation.
Now, if the order is not having any status like PDLV, DLV or TECO it will not calculate the variances in the first place.
Your second scenario is correct - without GR the system does not calculate any target costs. Also it will not calculate any variances because the order status is still not DLV.
Best Regards,
Sameer

Variance calculation for production order with settlement receiver as SDI

Hi...
I have one query reference to Variance calculation for production order with settlement receiver as SDI(Sales document item).
I am working on Varaint configuration with strategy 25(Make-to-order for configurable material) with requirement class 046.
I have created sales order ref. to configurable material,subsequently created planned order & then converted to production order.
In production order settlement receiver is SDI(Sales document item).
While doing production confirmation ,variance has been created.
Now during variance calculation KKS2, I have got error message as no suitable settlement rule found for object Order no.
Is there any way to come out of this?Or variance calculation KKS2 is not applicable with settlement receiver as SDI(Sales document item).
Pl. guide
Redards
Tushar

Hi
In case of non valuated material, concept of variance does not apply...
Variance is Actual Cost - Cost of Goods receipt posted in stock.. If the later value is zero, your entire actual cost is variance... That is one way of saying it
But, in SAP, var not calculated in case of non valuated material and that makes sense as well.. Since you are in MTO scenario, it would make sense to analyse costs vs revenues @ sale order level as each SO will be unique in itself
Regards
Ajay M

Variance calculation for production order

Hello,
I am clarifying what's the selection criteria for settled production orders so that we can carry out the following
close and deletion flag activities.
I am currently in release ECC605. Need to carify the below questions.
1. For production order without header material (dismantle production order), no need to do variance calculation before
settlement,right? Because I found system will respond green light but "no order was processed", this kind of production order
won't possess "VCAL variance calcaulted" system status.
2. For all production orders created with header material, vairance calculation is a must, even the variance is 0.
So the production orders will possess "VCAL" status after variance calculation transaction is done.
Thanks for your help in advance.
B. Regards,
Nancy

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

Variance Calculation for Prod order

Deal All
I have problem when run prod order variance calculation (KKS2) for period 8 why the order for period 9 is also calculated ?
why this happen ?
Thanks and regards

Hi Aditya
The program is designed in a way that all open prod orders are considered in it.. however, variance will not be calculated on it
For eg: You calculate Var in 009 for period 008.. Prod order created in fag end of 008 and processing started in 009... During var cal, system will give an error for this prod order saying "Only rem variances can be calculated for it" or some error of that sort
you can ignore this error... I got a note released from SAP for this error.... however, that note is under reconstruction now and hence not available
You can raise an OSS msg mentioning note no 1320759 and ask them when it will be available again
Regards
Ajay M

Basic and scheduling dates & time calculation in process order creation

Hi guru's,
i have one requirement, i need to calculate and display the basic and scheduled dates & times based on the given input i.e material , plant , process order type , quantity , UOM and scheduling type ( for corresponding scheduling type user will provide either start date or finish date ) using RFC. can u plz provide any function module for this purpose or logic for calculating the same , as i am working on version 4.7ee .
Awaiting for a quick response.
Regards,
Madan

Dear Rohan,
1.Check the length of break timings defined in the resource that is assigned in the phase.
2.Check in OPUZ whether for the process order type and plant combination whether scheduling is to include the break time also
(whether the check box for scheduling with breaks) is included.
Check and revert back.
Regards
Mangalraj.S

Actual Cost Calculation in Process Order

Hi All,
I updated Standard cost of a raw material through a cost estimate and also ran cost estimate of the FIN that is using this raw material but when I am creating a Process order, it is taking the cost of this particular raw material from the previous estimate not the recent one to calculate the target cost. Can any body help me with this.
Thanks
MKR

Hi Ashok,
My Valuation variants for the Costing Variant of Cost Estimate and Production order (Actual/Plan) cost calculation are in Sync to get the prices according to the price indicator in material master. But when it calculates cost for a production order, it is picking up cost from the previous period for that particular raw material. I have updated the standard cost by running the cost estimate but still its not working.
Any lead on this. This will be really appreciated.
Thanks
MKR

Avoid variance calculation on product order

Hi experts,
i have a question. We have a material with cost estimate with quantity structure, cost estimate is release. All cost components in cost component structure are in inventory valuation. On the product order are then target costs. When material is producing, one component of BOM (cost element XXX) is not consumption on product order. When i start variance calculation, SAP calculate variance to this one component (cost element XXX) and by settlemnet of order, posting variance to FI. But this thing i don´t want. It is possible prohibit calculation of variance for this component of BOM - cost element XXX on product order? It is possible prohibit settlement this variance to FI? What i can do for it?
Thanks a lot,
Gustavo

Hi,
i must settlement product order, so i need variance calculation. So can i settlement variances to FI only for some components of BOM and one variances of one component leave on procuct order? Or can i settlement variances of one component of BOM to other cost centrum than others components (alternatively under other cost elements)? Maybe substition.... If yes, how?
Thanks a lot,
Gustavo

Actual Over Head Calculation for process order

hi!
I have created a costing sheet for over head, which will be based on labour activity cost.
the base is labour cost for which I have given secondary cost element ( assigned in activity type for labour hours) in costing sheet and maintained over head rate for planned & actual. in credit of costing sheet for over head I have given secondary cost element with internal order.
first question is : when internal order posting will happen? I am assuming , when production order settlement is done, over head cost has to be accrued to internal order. is my assumption is correct? because in line items of internal order , i couldn't see any thing.
second question is : in process order, system is showing over head cost under planned cost, but it is showing ZERO in actual cost column. I have executed KGI2, system is not showing any senders or receivers. but when I executed KGI2 with dialog dipslay check box, system shows the calculations as per cost sheet correctly under condition value column.
Please let me know where I missed ? how to get actual over heads in process order.
in process order in cost analysis in the actual/target cost layout, system is showing the over head costs. but where as in "cost trend" layout, system is not showing over head cost.
can any one help on above points.
regards,
ramesh b

Hi
Maintain the Overhead rate in KZM2 or KZZ2 as the case may be
Then execute CO43... The moment overhead is charged to Process order, it would post credit to IO
br, Ajay M

Error during variance calculation for production order "NO cost estimate "

hi all,
I'm gettin this error message while trying to calculate the variance for a production order. error is "No cost estimate for material xxxx for 01.10.2008.
when i look at material xxx in MM02, under cost estimate for current period there is a value but nothing for previous period. So i'm guessing the the Cost estimate was not run of this material? am i correct here?
Now if i try to run cost estimate for material for the missing periods using CK11N, i get an error "cannot save for past period"
Could some one tell me how can i get a prior year estimate into the material master?
I tried CK40N and CKN1 but just cant get it to work...
Thanks heaps

Hi Tom
unfortunately there is no easy way to get a product cost estimate for a past date. One of the reasons for this would be inconsistant product valuation.
You could in theory create a cost estimate in a current date and use an ABAP or manually adjust the valid from and to dates directly in the tables (e.g. KEKO). To do this in a production environment would be restrictive off course.
The standard cost estimate is the basis for the target costs so as an alternative you could look to change the configuration of the target cost version in OKV6 to either of the following:
- Plan Cost/Preliminary Costing (that is the plan calc done on your production order)
- Alternative Material Cost Estimate (one that is not necessarily a product costing that is set for marking and release).
I hope this is of some help.
Elaine

Lead Time calculation in process order

Hi,
I have a process order to be created of 112.6 L. i have only one phase & one resource allocated. i have maintained my OH time as 1 H in my master recipe. now for resource i have maintained scheduling formula as ZRUNA = OH.
After creating Process order the system calculates phase timing as 1:17:44. Can anyone pls let me know how did system calculate 17 min & 44 sec extra.
Thanks & Regards,
Rohan Somji

Dear Rohan,
1.Check the length of break timings defined in the resource that is assigned in the phase.
2.Check in OPUZ whether for the process order type and plant combination whether scheduling is to include the break time also
(whether the check box for scheduling with breaks) is included.
Check and revert back.
Regards
Mangalraj.S

Finish Date Calculation in Process Order

Hi all,
I have an unique problem. I am using Backword schduling and while creating a Process Order I give a Finish Date and Create the Order. But while Saving System Overwrites with a different finish Date. I have ckecked, nowhere In house Production Time is maintained in Material master for the Material. My question is from where the system is picking this new finsih Date?
Please give me the clue..
Regads

Hi,
Please check the scheduling Type when you ran MRP.
If you had used basic scheduling, then the times are picked-up from the material master. But you used Lead Time scheduling, then the times are picked from the routing.
Also, check the floats maintained in the material master.
Hope it resolves the issue.
Regards,
Kaushik

Target Cost in Process Order not calculated

Hello,
In Process order, after deliver of FG the target cost is not getting calculated,
Could you please help me why the target cost is not calculated in process order.
I have configured all setting for WIP and Variance

Hi,
Target costs are only calculated after goods movements have occured on the order, the Target Costs are then calculated during the Variance calculation.
Target costs will only be calculated after the first goods receipt has been posted to the order. Also you have to ensure that the information to calculate target costs exists on the system in particular in OKV6.
This estimation is based on the customizing for the Target cost version in transaction OKV6 as in turn will the "real" calculation of the Target costs via the variance calculation.
So in OKV6 the Target cost will be based on preliminary costing on the order, an alternative cost estimate or the current standard cost estimate. Importantly if the choosen option is not fulfilled e.g. no current standard cost estimate, the target costs will not be predicted or calculated.
regards
Waman

Process order variance

Dear experts,
Here is process order scenario
In that i am doing variance calculation for one order
but it is giving message that "no order could be processed "
Plz guide me what could be reason
thanks in advance
regards
sachin ghogale

Dear
Before doing variance calculation check your order status it must be DLV status.
1. After Final Confirmation of Order (Status: CNF) make GR for order using T.code: MIGO / MB31 so Production Order Status will be DLV.
2. Then complete the order technically by using T.code: CO02--> Functions (Menu)---> Restrict Processing -
> Technically Complete. You can carry out TECO for multiple Orders in T.code: COHV (Mass Processing).
3. Now Calculate Overheads using T.code: KGI2 - Individual Processing
CO43 - Collective Processing

Remaining Variance on Process Order

Analysis of variances on a process order results in the difference being calculated as a Remaining Variance (Only remaining var. in version 0 - no target costs, message KV 151).
I want to include this variance in a report.
In which table can I find this data?
Thanks

Ttry COSS and COSP
table with value type 31 which is variance value type...
Do not forget to save the variance results...

Variance Calculation In Process order

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