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

SAP Term: planning variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A variance that arises in the planning stage. The planning variance can be calculated by comparing the target costs calculated in the standard cost estimate for the material to the planned costs for a manufacturing order. This comparison is made on the basis of the planned order quantity. You analyze planning variances for such purposes as optimizing the quantity structure or the lot size of an order.

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• Key Concepts: 
  Planning variance is a term used in SAP's CO-PC Product Cost Controlling component. It is the difference between the planned cost of a product and the actual cost of the product. This variance can be used to identify areas of improvement in production processes and to help optimize costs. 
  
  How to use it: 
  In order to calculate the planning variance, you must first enter the planned cost of a product into SAP's CO-PC Product Cost Controlling component. Then, you must enter the actual cost of the product. The difference between these two values is the planning variance. 
  
  Tips & Tricks: 
  It is important to regularly monitor the planning variance in order to identify areas of improvement in production processes and to help optimize costs. Additionally, it is important to ensure that all planned costs are accurate and up-to-date in order to get an accurate calculation of the planning variance. 
  
  Related Information: 
  For more information on SAP's CO-PC Product Cost Controlling component, please refer to SAP's official documentation here: https://help.sap.com/viewer/product/SAP_CO_PC/latest/en-US