C_TFIN22_65 · Question #7
When do you calculate variances for a production order with order controlling?
The correct answer is B. After the final delivery of the production order. Variances for a production order are typically calculated after the final delivery of the order, when all costs and revenues (if applicable) are known and the order is completed from a logistics perspective.
Question
When do you calculate variances for a production order with order controlling?
Options
- AAt the end of each period, independent of the order status.
- BAfter the final delivery of the production order.
- CAfter the first partial delivery of the production order.
- DAfter the final confirmation for the last operation.
How the community answered
(69 responses)- A1% (1)
- B93% (64)
- C4% (3)
- D1% (1)
Why each option
Variances for a production order are typically calculated after the final delivery of the order, when all costs and revenues (if applicable) are known and the order is completed from a logistics perspective.
Calculating variances at the end of each period for an open order is usually part of Work in Process (WIP) calculation, not final variance calculation which requires order completion.
Variance calculation for a production order in order controlling usually occurs at period-end closing, but specifically targets orders that have achieved final delivery. This ensures that all actual costs and output quantities are accounted for, allowing for a complete comparison against target costs.
After the first partial delivery, the order is still open and accumulating costs, making a final variance calculation premature.
While the final confirmation signifies manufacturing completion, it does not necessarily mean all costs (e.g., overheads posted later) or all goods movements (final delivery) have occurred for the order.
Concept tested: Production order variance calculation timing
Source: https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/f50123594a044415a770857022513f1c/0cc9a25381cf2614e10000000a174cb4.html
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