In this section you make the settings for variance calculation.

Variance calculation in Activity-Based Costing displays the balance between the actual costs and the allocated actual costs in different variance categories. The individual categories are determined cumulatively. This means that the total of the individual variances corresponds with the overall balance for the business process.

Variance calculation distinguishes between the input side and the output side of the business process.

The input side contains all the debits and credits for the business process, except the credits from activity allocations. On the input side you compare the actual costs (control costs) with the target costs . In this way, the following variance categories can be calculated:

The output side contains the activity allocations for the business process. On the output side you also compare the allocated actual costs with the target costs or the plan costs. The variance categories on the output side are:

Further notes

You can find further information on variances in the "R/3 Library" under "Controlling -> Cost Center Accounting -> Actual Postings and Allocations -> Period-End closing" in the section "Variance Calculation".

You can also find information in: