SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance & Scrap

Variance Categories | CO-PA Variance Splitting | Scrap
Component Scrap | Assembly Scrap | Operation Scrap | Scrap % in Routing | Production Order Scrap Portion

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Table of Contents
Price Variance Split – Production Variance Split ..................................................................................................................... 6
GL Creation.......................................................................................................................................................................... 6
Configuration....................................................................................................................................................................... 7
Input Qty Var ................................................................................................................................................................... 7
Input Price Var ................................................................................................................................................................. 8
Resource Usage Var ......................................................................................................................................................... 8
Remaining Input Var ........................................................................................................................................................ 8
Mixed Cost Var ................................................................................................................................................................ 9
Output Price Var .............................................................................................................................................................. 9
Remaining Output Var ..................................................................................................................................................... 9
Lot Size / FC Variance .................................................................................................................................................... 10
Scrap Variance ............................................................................................................................................................... 10
Assign Variance Split Profile to Company Code ............................................................................................................ 10
Process .............................................................................................................................................................................. 11
Create Production Order – [CO01] ................................................................................................................................ 11
Variance Calculation – [KKS2]........................................................................................................................................ 12
Settlement – [KO88] ...................................................................................................................................................... 13
Process : Variance Split in Different Variance Types ............................................................................................................. 14
Input Qty Variance ............................................................................................................................................................ 14
Material Master ............................................................................................................................................................ 14
BOM .............................................................................................................................................................................. 15
Routing .......................................................................................................................................................................... 15
Production Version ........................................................................................................................................................ 15
Cost Estimate................................................................................................................................................................. 16
Raw Material Stock IN ................................................................................................................................................... 16
Create Order.................................................................................................................................................................. 17
Actual Confirmation ...................................................................................................................................................... 18
Variance Calculation ...................................................................................................................................................... 19
Settlement ..................................................................................................................................................................... 20
Input Price Variance .......................................................................................................................................................... 21
Create Order.................................................................................................................................................................. 21
MR21 ............................................................................................................................................................................. 22
Activity Type Actual Rate Change .................................................................................................................................. 24
CO11N ........................................................................................................................................................................... 25
Order Revaluation ......................................................................................................................................................... 26
Variance Calculation ...................................................................................................................................................... 27
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Settlement ..................................................................................................................................................................... 28
Output Price Variance ....................................................................................................................................................... 29
Create Order.................................................................................................................................................................. 29
Cost Estimate................................................................................................................................................................. 30
CO11N ........................................................................................................................................................................... 31
Variance Calculation ...................................................................................................................................................... 33
Create Order Again........................................................................................................................................................ 36
CO11N ........................................................................................................................................................................... 37
RM Price Change & Execute Cost Estimate ................................................................................................................... 38
Variance Calculation ...................................................................................................................................................... 39
Settlement ..................................................................................................................................................................... 41
Remaining Variance........................................................................................................................................................... 42
Order Create.................................................................................................................................................................. 42
CO11N ........................................................................................................................................................................... 44
Variance Calculation ...................................................................................................................................................... 45
Settlement ..................................................................................................................................................................... 47
Remaining Input Variance ................................................................................................................................................. 48
Material Master ............................................................................................................................................................ 48
Cost Estimate................................................................................................................................................................. 48
Order Create.................................................................................................................................................................. 49
CO11N ........................................................................................................................................................................... 51
Actual Costing Sheet ..................................................................................................................................................... 52
Actual Template Allocation ........................................................................................................................................... 53
Variance Calculation ...................................................................................................................................................... 54
Lot Size Variance ............................................................................................................................................................... 55
Configuration Change.................................................................................................................................................... 55
Master Data................................................................................................................................................................... 56
Create Order.................................................................................................................................................................. 57
CO11N ........................................................................................................................................................................... 59
Variance Calculation ...................................................................................................................................................... 60
Settlement ..................................................................................................................................................................... 61
Mix Costing Variance ......................................................................................................................................................... 62
Material Master ............................................................................................................................................................ 62
BOM .............................................................................................................................................................................. 63
Routing .......................................................................................................................................................................... 64
Production Version ........................................................................................................................................................ 68
Procurement Alternative – [CK91N].............................................................................................................................. 69
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Mixing Ratio – CK94 ...................................................................................................................................................... 69
Cost Estimate................................................................................................................................................................. 70
Order Create.................................................................................................................................................................. 71
CO11N ........................................................................................................................................................................... 73
Variance Calculation ...................................................................................................................................................... 74
Settlement ..................................................................................................................................................................... 75
Recourse Usage Variance .................................................................................................................................................. 76
Production Order .......................................................................................................................................................... 76
CO11N ........................................................................................................................................................................... 77
Variance Calculation ...................................................................................................................................................... 79
Settlement ..................................................................................................................................................................... 80
****************** ........................................................................................................................................................... 86
****************** ........................................................................................................................................................... 86
Scrap...................................................................................................................................................................................... 86
Master Data For All Scrap.................................................................................................................................................. 86
BOM .............................................................................................................................................................................. 86
Routing – With 3 Operation .......................................................................................................................................... 86
1) Component Scrap ...................................................................................................................................................... 86
Maintained In Material Master ..................................................................................................................................... 86
Maintained In Material Master & BOM Also ................................................................................................................ 94
2) Assembly Scrap ......................................................................................................................................................... 96
Assembly Scrap With Component Scrap ....................................................................................................................... 96
3) Operation Scrap ...................................................................................................................................................... 105
Operation Scrap With Component Scrap & Assembly Scrap ...................................................................................... 105
4) Scrap % in Routing................................................................................................................................................... 113
5) Production Order – Scrap Portion Cost Estimate Screen ........................................................................................ 123
6) All Scrap Together ................................................................................................................................................... 126
Master Data – Material ............................................................................................................................................... 126
Master Data – BOM..................................................................................................................................................... 127
Master Data – Routing ................................................................................................................................................ 127
Cost Estimate............................................................................................................................................................... 128
Production Order ........................................................................................................................................................ 131
Actual Cost On Order .................................................................................................................................................. 132
Variance....................................................................................................................................................................... 135
Settlement ................................................................................................................................................................... 136
Scrap Qty at CO11N............................................................................................................................................................. 138
Case 1 : Prodtn Order Qty = 10 | Yield = 10 | Scrap = 1 .................................................................................................. 138
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Master Data................................................................................................................................................................. 138
Cost Estimate............................................................................................................................................................... 138
Raw Material Stock In ................................................................................................................................................. 139
Production Order ........................................................................................................................................................ 139
Actual Cost .................................................................................................................................................................. 140
Variance....................................................................................................................................................................... 141
Settlement ................................................................................................................................................................... 143
Case 1 : Prodtn Order Qty = 10 | Yield = 09 | Scrap = 1 .................................................................................................. 144
2nd Production Order ................................................................................................................................................... 144
Actual Cost .................................................................................................................................................................. 145
Variance....................................................................................................................................................................... 146
Settlement ................................................................................................................................................................... 148
Sales Order .................................................................................................................................................................. 150
Shipping – PGI ............................................................................................................................................................. 151
Billing ........................................................................................................................................................................... 153
Variance Settlement in Cost Center - Same Actual Cost GL ................................................................................................ 154
Config .............................................................................................................................................................................. 154
Allocation Structure .................................................................................................................................................... 154
Settlement Profile ....................................................................................................................................................... 155
Process ............................................................................................................................................................................ 155
Order Create................................................................................................................................................................ 155
Actual Cost .................................................................................................................................................................. 156
Variance....................................................................................................................................................................... 157
Settlement ................................................................................................................................................................... 158
Variance Settlement in Cost Center - Via OKB9 ................................................................................................................. 161
Config .............................................................................................................................................................................. 161
OKB9............................................................................................................................................................................ 161
Process ............................................................................................................................................................................ 162
Settlement ................................................................................................................................................................... 163

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Price Variance Split – Production Variance Split

GL Creation

PRD-PRF – 300230

300260 to 300268 variance split GLs.

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Configuration

Input Qty Var

Default Ind. Is needed for one.

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Input Price Var

Resource Usage Var

Remaining Input Var

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Mixed Cost Var

Output Price Var

Remaining Output Var

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Lot Size / FC Variance

Scrap Variance

Assign Variance Split Profile to Company Code

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Process
Create Production Order – [CO01]

RM Issue , AT Confirm, FG GR - [CO11N]

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Variance Calculation – [KKS2]

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Settlement – [KO88]

In Our scenario only Input Qty var is there so above screen shows accordingly.

There is no 2 doc of splitting like COSG splitting.

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Process : Variance Split in Different Variance Types

Input Qty Variance
Material Master

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BOM

Routing

Production Version

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Cost Estimate

Raw Material Stock IN

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Create Order

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Actual Confirmation

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Actual RM & Activity Qty Has Variance

Variance Calculation

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All Variance is posted as Qty Variance.

Settlement

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Input Price Variance

Create Order

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MR21

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Activity Type Actual Rate Change

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CO11N

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Order Revaluation

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Variance Calculation

All Variance posted in Price Variance.

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Settlement

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Output Price Variance
Create Order

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After this order Raw Material Price Change & Create Another Order.

In this Order Total Plan Amount has 100 rs difference (becz RM price change from 100 to 150)

Cost Estimate

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CO11N

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Variance Calculation

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No Variance in both Order

Now See the sequence of below mention process

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Create Order Again

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CO11N

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RM Price Change & Execute Cost Estimate

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Variance Calculation

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Now See When Standard Cost is change after GR it will be output price variance

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Settlement

Now check this : this variance has no financial impact becz actual GR done on previous standard , when standard change
it changes the target cost of order.

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Remaining Variance
Order Create

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No Cost Estimate, 600 Cost input via MR21.

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CO11N

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No target Cost Becz no cost estimate

Variance Calculation

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This Variance Calculate with Error.

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Settlement

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Remaining Input Variance
Material Master

Cost Estimate

Costing Sheet & Template Allocation.

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Order Create

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After Creating Order Only Plan Cost Shows

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CO11N

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Now RM & AT Actual Cost Show.

Actual Costing Sheet

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Actual Template Allocation

Only 2.30 variance shows which belong to costing sheet.

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Same order in controlling area currency | No Variance | 2.30 variance show in company code currency due to rounding
off or exchange rate.

Variance Calculation

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Costing sheet Variance shows in Remaining Input variance.

Lot Size Variance

Configuration Change
OP55

Before Change

After

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Master Data
Assign Formula in Work Center

Costing Lot size in Material Master = 1

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Base Qty in routing = 1

Create Order

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CO11N

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Only 2 hrs of LBR occur as actual hrs.

Variance Calculation

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Lot Size Variance

Settlement

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Mix Costing Variance

Material Master

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BOM
Make 2 Bom

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Routing
Make 2 routing

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2 version

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Production Version
2 production version create

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Procurement Alternative – [CK91N]

Mixing Ratio – CK94

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Cost Estimate

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Order Create

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Can select any version : V1 is select

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CO11N

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Variance Calculation

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Settlement

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Recourse Usage Variance

Production Order

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CO11N
RM Change at the time of issuance

From VARIANCE-RM-100 to VARIANCE-RM-101 & Also change in Activity Qty

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Variance Calculation

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Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

******************

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Scrap
Master Data For All Scrap
BOM

Routing – With 3 Operation

1) Component Scrap
Maintained in Raw Material’s MRP-4 tab & FG BOM, FG BOM will be the priority. Its apply on material only.

Maintained In Material Master

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Cost Estimate

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Raw Material In

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Production Order Create

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Actual Cost On Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance Calculation

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Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Maintained In Material Master & BOM Also

BOM Scrap % overwrite the Material Master %

5 % Maintain in Material Master & 10 % Maintain in BOM

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
2) Assembly Scrap
Maintained in MRP-1 view, It works with Component Scrap & its Apply on Material & Activity Type Also

Assembly Scrap With Component Scrap

Component Apply only on material but Assembly apply on Material as well as activity type.

Master Data

Cost Estimate

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Production Order Create

Automatic Scrap Portion Pick due to Assembly Scrap

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Actual Cost On Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance Calculation

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Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
3) Operation Scrap
It Maintain on BOM Level & apply on material only.

Operation Scrap Overwrite the Assembly Scrap % on Material Only But its apply on Activity Type

Currently Component % is 5 | Assembly % is 10 | Operation % is 15

Operation Scrap With Component Scrap & Assembly Scrap

Component Apply only on material but Assembly apply on Material as well as activity type.

Master Data – Material Master

Master Data – BOM

Must Check Net ID

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Cost Estimate

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Production Order Create

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Actual Cost On Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance

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Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

4) Scrap % in Routing

This % Only Effect the Activity Type

3 Operations are there 5% Maintain in 1st Operation & 10% Maintain in 2nd Operation.

This % will Effect the next Operation Means 5% will effect 2nd & 3rd Operation & 10% will effect 3rd Operation.

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Master Data - Routing

Cost Estimate – (Costing Lot Size Auto Reduce)

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Recon - Costing Lot Size

Production Order Create

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Actual Cost On Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
5) Production Order – Scrap Portion Cost Estimate Screen
It can be input independently or its work with other scrap also.

Cost Estimate

Production Order Qty & Scrap Portion Qty (Manual Enter)

Plan Qty Before Scrap portion

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Scrap Portion = 1 | 1 Qty is decrease from FG GR & Material & AT set accordingly.

Scrap Portion = 2 | 2 Qty is decrease from FG GR & Material & AT set accordingly.

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Scrap Portion = 5 | 5 Qty is decrease from FG GR & Material & AT set accordingly.

Scrap Portion = 9 | 9 Qty is decrease from FG GR & Material & AT set accordingly.

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

6) All Scrap Together

Master Data – Material
Component Scrap

Assembly Scrap

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Master Data – BOM
Operation Scrap

Master Data – Routing

Scrap in Routing
3 Operations are there 5% Maintain in 1st Operation & 10% Maintain in 2nd Operation.

This % will Effect the next Operation Means 5% will effect 2nd & 3rd Operation & 10% will effect 3rd Operation.

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Cost Estimate

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Recon – Lot Size

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Production Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Actual Cost On Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Scrap Qty at CO11N

Case 1 : Prodtn Order Qty = 10 | Yield = 10 | Scrap = 1
Master Data

Cost Estimate

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Raw Material Stock In

Production Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Actual Cost

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Case 1 : Prodtn Order Qty = 10 | Yield = 09 | Scrap = 1

2nd Production Order

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Actual Cost

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Variance

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Sales Order

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Shipping – PGI

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Billing

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance Settlement in Cost Center - Same Actual Cost GL

Config
Allocation Structure

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Settlement Profile

Process
Order Create

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Actual Cost

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Variance

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil
Settlement

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Variance Settlement in Cost Center - Via OKB9

Config
OKB9

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Process

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SAP FICO Ver-MTJ-08-2024 Muhammad Tariq Jamil

Settlement
Must Enter CTR in Settlement Rule other wise it will post in PSG.

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