Variance Analysis in SAP CO Product Costing: Simple Guide with Example

If you work with SAP CO, you may have encountered variance categories in your reports or transactions. Variance categories are a way of classifying and analyzing the differences between planned and actual costs of a product or process. Variance categories can be divided into two types: input side and output side. Input side variances are based on the costs of the materials and activities that are consumed or used in the production process. Output side variances are based on the costs of the products or services that are produced or delivered by the process.
In this document, following list of variance categories are step-by-step analysed with a given example.

  • Input Side Variances
    • Input price variance
    • Input quantity variance
    • Resource-usage variance
    • Remaining input variance
  • Output Side Variances
    • Mixed price variance
    • Output price variance
    • Remaining variance

Download – Variance Analysis in SAP CO Product Costing: Beginner’s Guide

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