Settlement of Production Variances

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 * standard price)).

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 Analysis.

Prerequisites

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).
5. You must have maintained number ranges for record type "C".
6. The desired form of Profitability Analysis must be active in the relevant controlling area.