SAP ABAP Data Element AWFKG (Variances: Total Fixed-Cost Variance)
Hierarchy
☛ BBPCRM (Software Component) BBPCRM
   ⤷ CRM (Application Component) Customer Relationship Management
     ⤷ CRM_APPLICATION (Package) All CRM Components Without Special Structure Packages
       ⤷ KV (Package) Variance analysis RK-S/RK-K
Basic Data
Data Element AWFKG
Short Description Variances: Total Fixed-Cost Variance  
Data Type
Category of Dictionary Type D   Domain
Type of Object Referenced     No Information
Domain / Name of Reference Type WERTV8    
Data Type CURR   Currency field, stored as DEC 
Length 15    
Decimal Places 2    
Output Length 21    
Value Table      
Further Characteristics
Search Help: Name    
Search Help: Parameters    
Parameter ID   
Default Component name    
Change document    
No Input History    
Basic direction is set to LTR    
No BIDI Filtering    
Field Label
  Length  Field Label  
Short 10 FxdCstVar 
Medium 15 Fixed-cost var. 
Long 20 Fixed-cost variance 
Heading 21 Fixed-cost variance 
Documentation

Definition

Variance category on the output side

Fixed cost variances occur when a portion of the fixed plan costs is not covered by, or is overabsorbed by, the credits when the actual operating level is not the same as the plan operating level.

Fixed-cost variances consist of the volume variance and the secondary fixed-cost variance.

Use

Variance calculation determines the fixed cost variances periodically.

Procedure

Fixed-cost variances result when the operating rate is not 100%.

Fixed-cost variances are defined by the following formula:

Fixed-cost variance = Fixed plan costs x (1 - operating rate)
+ Fixed target costs - fixed plan costs

In many cases the fixed target costs are equal to the fixed plan costs. In internal activity allocation, however, this can result in a difference between fixed plan costs and the fixed target costs (see target cost formula 4). This difference is marked as a variance in the fixed cost variances.

The fixed-cost variances are actually calculated with the following formula, which gives the same result as the formula above:

Fixed-cost variance = Fixed target costs
- Fixed plan costs x (actual qty/plan qty)

Note

See also:

Calculation accuracy

Examples

Activity-independent activity input

  • Sender activity type:

    Activity unit : Piece

    Fixed activity price : $ 5

    Variable activity price : $10

  • Activity input (activ.-depend.) in plan:

    Fixed plan quantity : 10 pieces

    Variable plan quantity : 20 pieces

  • Plan costs:

    Fixed plan costs = $10 x 10 pc + $5 x 10 pc + $5 x 20 pc = $250

    Variable plan costs = $10 x 20 pc = $200

  • Target costs with an operating rate of 150% for the receiving (cost center/) activity type:

    Fixed target quantity = Fixed plan quantity = 10 pc

    Variable target quantity = Variable plan quantity * Op rate

    = 20 pc x 150% = 30 pc

    Fixed target quantity = $10 x 10 pc + $5 x 10 pc + $5 x 30 pc = $300

    Variable target quantity = $10 x 30 pc = $300

  • Fixed cost variance:

    Fixed cost variance = Fixed plan costs x (1 - Operating rate)

    + Fixed target costs - Fixed plan costs

    = $250 x (1 - 150%)

    + $300 - $250

    = -$75

Dependencies

Fixed-cost variances can only be calculated in Overhead Cost Controlling.

History
Last changed by/on SAP  19951114 
SAP Release Created in