2681528 - Variance Does not Represent Standard Cost Minus Actual Cost in Report 'Actual Costing Production Variance'

When you select the Report ‘Actual Costing Production Variance’ with the View 'Variance - Standard/Actual by Production Lot', you realise that the difference between Actual Input Cost and Standard Cost is different from the amount in the column Variance.

SAP Business ByDesign

1. Go to Inventory Valaution work center.
2. Go to Report-List View.
3. Open report Actual Costing Production Variance.
4. Select the View Variance - Standard/Actual by Production Lot.

You see the column: Actual Input Cost - Standard Cost - Variance. However, the difference between Actual Input Cost and Standard Cost is difference from the amount in the column Variance.

The Variance amount which shows up on this report is the difference between Actual Input Cost and Actual Output Cost.

Actual Input Cost includes all postings relevant to inputs for the production lot like Goods Issue for Production, Internal Service Confirmation, Overheads.

Actual Output Cost includes all postings relevant to outputs from the production lot like Goods Receipt from Production, WIP Clearing.

You can open report 'Production Lots - Line Items' and check Actual Input Cost and Actual Output Cost for a specific production lot.

The system is working as expected.

Actual Costing Production Variance, Actual Input Cost, Standard Cost, Variance, Production Lot , KBA , SRD-FIN-INV , Inventory , How To