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

SAP Term: scrap variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The value of the unplanned scrap quantities. The scrap variance is calculated by valuing the unplanned scrap quantities with the target costs less the planned scrap costs. The u nplanned scrap quantity is the difference between an operation's actual scrap quantity and its target scrap quantity.

Smart SAP Assistant

• Key Concepts: 
  Scrap variance is a term used in SAP's CO-PC Product Cost Controlling component. It is the difference between the actual cost of scrap and the standard cost of scrap. This variance is used to measure the efficiency of production processes and to identify areas where costs can be reduced. 
  
  How to use it: 
  In SAP, scrap variance is calculated by subtracting the standard cost of scrap from the actual cost of scrap. This calculation can be done manually or automatically using SAP's CO-PC Product Cost Controlling component. The variance can then be used to identify areas where production processes can be improved and costs can be reduced. 
  
  Tips & Tricks: 
  When calculating scrap variance, it is important to ensure that the standard cost of scrap is up-to-date and accurate. This will ensure that the variance calculation is accurate and will provide more reliable insights into production processes. 
  
  Related Information: 
  Scrap variance is closely related to other terms such as standard cost, actual cost, and efficiency variance. Understanding these terms and how they relate to each other will help you better understand how scrap variance works in SAP's CO-PC Product Cost Controlling component.