Step 1: Open the file.
Choose the authorization scope and the period / fiscal year
SCOPE : SCO
Control that the report BW = KE30:
Total column P = D05
Total column Q = E05
Total column R = F05
List the products that generate the main variances
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
Fill in those information in « variance template » tab
When there are recurring performance variances, they can be listed in the sheet "Perf. analysis"
