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

SAP Term: total variance

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: The variance of an order that explains difference between the debit and credit of an order. To determine the total variance, the SAP System compares the target costs calculated in the standard cost estimate for the material to the actual costs. Target costs are calculated on the basis of the yield delivered to inventory.

Smart SAP Assistant

• Key Concepts: 
  Total variance is a term used in SAP's CO-PC Product Cost Controlling component. It is the difference between the actual cost of a product and the planned cost of the same product. This variance is calculated by subtracting the planned cost from the actual cost. 
  
  How to use it: 
  Total variance can be used to measure the efficiency of a production process. It can be used to identify areas where costs are higher than expected, and to identify areas where costs can be reduced. It can also be used to compare different production processes and to identify which one is more efficient. 
  
  Tips & Tricks: 
  When calculating total variance, it is important to consider all costs associated with the production process, including labor, materials, and overhead costs. Additionally, it is important to consider any changes in the production process that may have occurred since the planned cost was calculated. 
  
  Related Information: 
  Total variance is closely related to other terms such as standard cost and actual cost. Standard cost is the estimated cost of producing a product, while actual cost is the actual cost of producing a product. Total variance can be used to compare these two values and measure the efficiency of a production process.