Define Variance Keys
Variances are only calculated for a cost object hierarchy if a
variance key is entered in each cost object ID in the
In this step you define the following:
scrap is calculated in addition to the variances
- Whether a document is written containing the date, the user,
and the changes made
The cost object category determines whether variances can be
calculated for a cost object hierarchy and how the system handles
the objects assigned to this hierarchy.
- For cost object hierarchies, variances are calculated by
target costs are calculated using the materials
assigned to the cost object hierarchy.
The variances are calculated by
period for each hierarchy node and can be settled to Profitability
- Alternatively, you can distribute the actual costs entered at
the level of the hierarchy to the orders assigned to the cost
- Distribution is carried out in proportion to the target costs
for the product. The parameters for distribution are stored in the
target cost version.
- Variances are calculated at order level using the variance key
specified in the order.
You must already have checked the entries in the cost object
The standard system contains a number of predefined variance
keys for cost object hierarchies that you can use without further
Check whether the existing variance keys meet your requirements.
If you require your own variance keys, proceed as follows:
1. Choose New
entries and enter a number and a name for the new
2. Specify whether scrap should be
3. Specify whether a document should
be written with information on variance calculation.
4. Save the variance key.