What is variance in SAP SBO - SAP Business One?

SAP Term: variance

• Component: SBO

• Component Name: SAP Business One

• Description: A difference between the actual quantity of an inventory item, and the quantity shown in the inventory records.

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• Key Concepts: 
  Variance in SAP Business One (SBO) is the difference between the actual cost of a product or service and the budgeted cost. It is used to measure the performance of a business and identify areas where costs can be reduced. Variance can be calculated for both direct and indirect costs. 
  
  How to use it: 
  In SBO, variance is calculated by subtracting the budgeted cost from the actual cost. This calculation can be done manually or with the help of an automated system. The variance can then be used to identify areas where costs can be reduced or improved. 
  
  Tips & Tricks: 
  When calculating variance in SBO, it is important to consider both direct and indirect costs. This will ensure that all costs are accounted for and that the variance calculation is accurate. Additionally, it is important to regularly review the variance calculations to ensure that they are up-to-date and accurate. 
  
  Related Information: 
  Variance analysis is an important tool for businesses to measure their performance and identify areas for improvement. Variance analysis can also be used to compare different products or services and identify which ones are more cost-effective. Additionally, variance analysis can be used to identify trends in costs over time and make predictions about future costs.