What is variance in SAP IS-A-PPC - Production Backflush?

SAP Term: variance

• Component: IS-A-PPC

• Component Name: Production Backflush

• Description: Difference between the actual quantity entered that means, quantity backflushed and the target quantity that means, the planned quantity. You can enter the variance as an absolute value and then post it in Controlling.

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• Key Concepts: 
  Variance is a term used in SAP IS-A-PPC Production Backflush to describe the difference between the actual cost of a production order and the estimated cost. It is calculated by subtracting the estimated cost from the actual cost. Variance can be positive or negative, depending on whether the actual cost is higher or lower than the estimated cost. 
  
  How to use it: 
  In SAP IS-A-PPC Production Backflush, variance is used to track and analyze the difference between the estimated and actual costs of a production order. Variance can be used to identify areas where costs are higher than expected, as well as areas where costs are lower than expected. This information can then be used to make adjustments to production processes in order to reduce costs and improve efficiency. 
  
  Tips & Tricks: 
  When tracking variance in SAP IS-A-PPC Production Backflush, it is important to keep an eye on both positive and negative variances. Positive variances can indicate that costs are higher than expected, while negative variances can indicate that costs are lower than expected. By tracking both types of variances, it is possible to identify areas where production processes can be improved in order to reduce costs and increase efficiency. 
  
  Related Information: 
  Variance is just one of many metrics that can be tracked in SAP IS-A-PPC Production Backflush. Other metrics include cycle time, throughput time, and scrap rate. By tracking these metrics in addition to variance, it is possible to gain a more comprehensive understanding of production processes and identify areas for improvement.