What is exchange rate variance in SAP CO-PC - Product Cost Controlling?

SAP Term: exchange rate variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The variance that occurs when the price of a resource in the object of comparison has changed because of fluctuations in the exchange rate. &EXAMPLE& The price of a raw material rises above the planned price because the exchange rate for the currency in which the material is listed has changed.

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• Key Concepts: 
  Exchange rate variance is a term used in SAP Product Cost Controlling (CO-PC). It is the difference between the actual exchange rate and the planned exchange rate for a given currency. This variance can be used to calculate the cost of goods sold (COGS) and other financial metrics. 
  
  How to use it: 
  In SAP Product Cost Controlling, exchange rate variance is calculated by subtracting the planned exchange rate from the actual exchange rate. This variance can then be used to calculate the cost of goods sold (COGS) and other financial metrics. 
  
  Tips & Tricks: 
  It is important to keep track of exchange rate variances as they can have a significant impact on financial metrics. It is also important to ensure that the planned and actual exchange rates are up-to-date in order to accurately calculate the variance. 
  
  Related Information: 
  For more information on exchange rate variance, please refer to SAP's official documentation on Product Cost Controlling (CO-PC). Additionally, there are many online resources available that provide further information on this topic.