Production Variance Analysis in SAP S/4HANA

To effectively plan production costs, you know that guesswork and projections aren’t enough. Optimize your production processes—and increase profitability—with this guide to production variance analysis in SAP S/4HANA. Start with the planning basics, and then perform costing runs and create cost estimates. See how to post actual costs with the Universal Journal, analyze variance during period-end processing, and assess scrap. Get details on SAP Fiori apps for reporting and the road ahead for variance analysis in this comprehensive resource!

• Master variance analysis to improve profitability and production processes with SAP S/4HANA
• Create cost estimates, assess actual postings, perform period-end close, and analyze scrap with step-by-step instructions
• Discover the new real-time accounting approach and key SAP Fiori apps

In this book, you’ll learn about:

Product Costing

Compare planned versus actual costs in SAP S/4HANA. Walk through key product master data, and then create standard, preliminary, and mixed cost estimates. Post actual costs and analyze them using the Universal Journal and SAP Fiori apps.

Variance Calculation

Analyze variance at period-end close. Follow step-by-step instructions to configure and perform production variance analysis for the cost center, purchase price, and scrap. See how the Material Ledger and actual costing impact variance analysis.

Reporting

Explore your reporting options for production variance analysis in SAP S/4HANA: analysis reports, detailed reports, line item reports, production order reports, and cost center reports.

Highlights include:

• Cost estimation
• Actual postings
• Product cost analysis
• Period-end close
• Variance configuration
• Cost center variance
• Purchase price variance
• Scrap variance
• Universal Journal
• Material Ledger
• Reporting

About the Author

John Jordan is the founder and principal consultant at ERP Corp, which provides SAP consulting and training services, particularly in the area of financials and controlling. He has written articles for the SCM Expert and Financials Expert newsletters, and is the author of SAP PRESS books Product Cost Controlling with SAP and Controlling with SAP: 100 Things You Should Know About&.

Janet Salmon is the chief product owner for management accounting at SAP SE and has accompanied many developments to the controlling components of SAP ERP Financials as both a product and a solution manager. She regularly works with key customers and user groups in the United States and Germany to understand their controlling challenges and requirements. Her role is to design and implement innovative controlling solutions with SAP’s development teams in Germany and China