When you valuate products with the standard price of production,
so-called "production variances" can result on the production
orders (actual cost of goods manufactured - (produced quantity *
These production variances are determined in Product Cost
Planning (CO-PC) and broken down there according to variance
categories. When you settle the production order, you can transfer
these variance categories to separate value fields in Profitability
1. The production variances first
need to be calculated in CO-PC.
2. Your PA transfer structure must
contain assignments of variance categories to value fields.
3. In the settlement profile, you
defined that variances are to be settled.
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).