What is output price variance in SAP CO - Controlling?

SAP Term: output price variance

• Component: CO

• Component Name: Controlling

• Description: The difference between actual credit and target credit. An output price variance arises under the following conditions: In Overhead Cost -OM, an output price variance arises when the activity price used is not the same as the monthly iterative price on the basis of the planned activity for example, a manually entered activity price. In Cost Object -PC-OBJ, an output price variance arises when the material manufactured is transferred to inventory at a price other than the standard price for example, the moving average price.

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• Key Concepts: 
  Output price variance is a term used in SAP Controlling (CO) to describe the difference between the actual price of a product or service and the planned price. This variance is calculated by subtracting the planned price from the actual price. The output price variance can be used to analyze the profitability of a product or service. 
  
  How to use it: 
  In SAP Controlling, output price variance can be calculated by entering the planned and actual prices into the system. The system will then calculate the difference between the two prices and display it as an output price variance. This variance can then be used to analyze the profitability of a product or service. 
  
  Tips & Tricks: 
  When calculating output price variance, it is important to ensure that both the planned and actual prices are entered accurately into the system. This will ensure that the variance is calculated accurately and can be used to make informed decisions about product or service profitability. 
  
  Related Information: 
  Output price variance is closely related to other terms such as input price variance, which is used to describe the difference between the planned and actual costs of a product or service. Additionally, output price variance can be used in conjunction with other metrics such as sales volume and cost of goods sold to analyze overall profitability.