STEP 1

Step 1:  Open the file.


Choose the authorization scope and the period / fiscal year

SCOPE : SCO



BW File on

BW - IMEP - WP2 Variance Analysis


STEP 2

Control that the report BW = KE30:
Total column P = D05
Total column Q = E05
Total column R = F05





STEP 3

List the products that generate the main variances




STEP 4

Explain the main variances


a. structure: Production version change / Raw material / Recycling / Others

How to read this variance ? 

  • Material 53789 TY A 218 V30 BLACK 34NG XXXX was produced with a different production version than the one used for the costing
  • In the production version (B332) used for the costing, it is forecasted to produce one batch in 18,239 hours. But this material was produced in 17,90 h on an other production line.

It creates the following variance on process order : 

b. yield: RM consumption is higher or lower than std quantity 

How to read this variance ?

  • The actual time (96 h) to produce material 64712 PA 66 MOLTEN POLYMER is higher than the standard time (84,261h)
  • It creates the following variance on process order : 

c. purchased vs produced: material is purchased instead of produced or vice & versa 

How to read this variance ?  

  • Material 63324 is supposed to be produced but it was purchased 
  • As it is purchased, the production cost = 100 % CP while in the costing the production cost is splited into CP / CNP / AMO

d. subcontractor: Material is produced by a subcontractor instead of an internal production 

How to read this variance ?

  • Same principle as the previous variance
  • When a material is produced by a subcontractor instead of an internal production

e. others: to be commented


STEP 5

Fill in those information in « variance template » tab




STEP 6

When there are recurring performance variances, they can be listed in the sheet "Perf. analysis"