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

SAP Term: variance based on components

• Component: IS-A-PPC

• Component Name: Production Backflush

• Description: Quantity variance at the component level posted in the actuals. Note that although the confirmation is entered at the assembly level, the system converts the quantities to the component or activity level.

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• Key Concepts: 
  Variance based on components is a type of variance analysis used in SAP IS-A-PPC Production Backflush. It is used to compare the actual cost of a component to the expected cost of the component. This comparison helps to identify any discrepancies between the two costs and can be used to identify potential areas for improvement. 
  
  How to use it: 
  In order to use variance based on components, you must first enter the expected cost of the component into SAP IS-A-PPC Production Backflush. Once this is done, you can then compare the actual cost of the component to the expected cost. Any discrepancies between the two costs can then be identified and addressed. 
  
  Tips & Tricks: 
  When using variance based on components, it is important to ensure that all costs are accurately entered into SAP IS-A-PPC Production Backflush. This will help ensure that any discrepancies between the actual and expected costs are accurately identified. Additionally, it is important to regularly review any discrepancies that are identified in order to ensure that they are addressed in a timely manner. 
  
  Related Information: 
  Variance based on components is just one type of variance analysis that can be used in SAP IS-A-PPC Production Backflush. Other types of variance analysis include material variance, labor variance, and overhead variance. Additionally, there are other tools available in SAP IS-A-PPC Production Backflush that can be used to analyze and improve production processes, such as process flow analysis and process optimization tools.