3380281 - Calculation of Output Price Variance and Lot Size Variance in the Production Variance Details Report

Customer hopes to understand the calculation formula of output price variance and lot size variance in the Production Variance Details Report.

SAP Business ByDesign

1. Go to Inventory Valuation work center.
2. Go to Reports view.
3. Select Report: Production Variance Details Report.
4. Input parameters such as Company, Set of books, Production end date, and Production lot.
5. Click 'Apply'.
6. In the view section, add input material and input resource.
7. You can see the output price variance result displays as XXX and lot size variance result displays as YYY.

Lot size variance = lot size independent standard cost * (confirmed quantity/costing quantity - 1).

Lot size independent standard cost: Please refer to Material Cost Estimate where overhead cost is AAA which is not dependent on lot.

Confirmed quantity: Please refer to the report, which is BBB.

Costing quantity: Please refer to the report, which is CCC.

Hence, Lot size variance = AAA*(BBB/CCC-1).

Output price variance = Standard input - Actual output - ∑Input variances - Lot size variance.

Standard input: Standard input is based on estimate, and you can find it in Material Cost Estimate. which is DDD.

Actual output: Please refer to the journal entry related to the production lot, which is EEE.
Input variance: Please refer to the report, which is FFF.

Lot size variance = AAA*(BBB/CCC-1)
Hence, Output price variance = DDD - EEE - FFF - AAA*(BBB/CCC-1)

System behavior.

Output Price Variance, Lot Size Variance, Production Variance Details Report , KBA , SRD-FIN-INV , Inventory , Problem