What is variance category in SAP CO - Controlling?

SAP Term: variance category

• Component: CO

• Component Name: Controlling

• Description: A classification of variances based on their cause, such as price or quantity variances.

Smart SAP Assistant

• Key Concepts: 
  Variance Category is a feature of SAP Controlling (CO) that allows users to group different types of variances together. Variance Categories are used to classify and analyze variances in order to identify trends and patterns. Variance Categories can be used to compare actual costs with planned costs, or to compare actual performance with planned performance. 
  
  How to use it: 
  In order to use Variance Categories, users must first define the categories they wish to use. This can be done in the SAP system by navigating to the Controlling (CO) module and selecting the “Variance Categories” option. Once the categories have been defined, users can assign them to specific variances in order to classify and analyze them. 
  
  Tips & Tricks: 
  When defining Variance Categories, it is important to consider how they will be used in order to ensure that they are as useful as possible. For example, if the goal is to compare actual costs with planned costs, then it may be beneficial to create separate categories for each type of cost. 
  
  Related Information: 
  For more information on Variance Categories, please refer to the SAP Help documentation or contact your local SAP support team.