Cost Variance

[Former Member]

Dear Gurus

This is urgent & require your expert comments ASAP

In CO03 > Goto > Costs > Analysis

Here i can see total actual costs........I want to know how does system calculate this?????

Please tell me how did the value viz appearing there has come b'cos till now in my case total target cost was equal to total actual cost......

But today i am seeing a variance of some rupees......which should not come ideally

I don't know why is it so & what led to this variance???

Please reply......

Rgds

Edited by: Vicky Khabrani on Apr 24, 2008 7:55 AM

[Former Member]

Hi Vicky.

There is no such thing that the Target and Actual cost should be same. If the actual cost is more and if there is any variance.

Please analyse as below.

The target cost is saved as per the cost component structure. See at what element the cost difference is there. If you are not issued the components as per BOM the material price cost will vary. If you have scraped any header material then also the material cost will vary.

If any of the activity time is more than routing rime. Then the process cost will vary. So look in to the details and analyse it.

The costing element and the valuation variant for planned and Actual are different. The prices are picked as per the valuation variant. So the difference may occur if any of the setting goes wrong.

Hope this is clear.

J . Saravan

[Former Member]

Hi Saravan

Thanks for your reply. Even i have the same opinion

Can you tell me what are important checks / T Codes i need to explore which shall help me to find this difference b'cos i have to conclude this difference in value

You have mentioned below the things to be checked but to be precise; it would be more helpful if you reply to my request of showing me the path & checks where i can see the root cause of this difference

Please revert

Rgds

[Former Member]

Gurus

Please reply..........or atleast give me some additional paths / checks which i can do so that i get some idea of this difference in values

Rgds