In order to calculate input price and quantity variances, the R/3 System requires the consumption quantities in addition to actual and plan costs. Only then can it distinguish between variance categories.
To assign consumption quantities to an account, you must define a quantity unit in the cost element master data. You can also assign quantities to accounts using a quantity unit you define as convertable to the unit stored in the cost element master data.
In addition, if you set the indicator "Record quantities" in the cost element and cost center master data, the R/3 System issues an error message if you do not enter quantities.
The deciding factor for variance calculation, however, is solely the quantity unit.
Example of Input Quantity Variance
Cost elements with frequent price fluctuations require consumption quantities for differentiated calculation of input price and quantity variances and their assignment to accounts.
You can determine input price variances for cost elements with relatively stable prices. To do so, complete the IMG activity Determine Primary Cost Input Price Variance . The input quantity variance is identified here.
Maintain a quantity unit in the cost element master data for cost elements with frequent price fluctuations.
Note on transport
To transport cost elements, see the IMG activity "Controlling: General".