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Posted by Angel G. Reyes in SAP ERP - Logistics Materials Management (SAP MM) on Jul 1, 2015 6:22:28 PM
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Overview
Aim of this document is to show how price variance is calculated in a context of standard cost.
Standard cost, is a agreement between Engineering and Finance areas, regarding the price of raw materials and operative supplies, this
estimated price is a key input to calculate gross margins.
The Purchasing Price Variance or PPV is a warning flag that says that the gross margin will have variance, taking care about the situation, on a
nimble way, enable the organization to keep margins going forward.
Our scenario is built it to buy 1,000 LB of raw material, where:
Standard Price
First of all, we have our raw material master data created:
Net PPV
Now, on SAP there is a report that can be customized (configured) to get this Net PPV, this is:
You can use transaction MC$G, to get the report with data related to PPV. This is infostructucture S012 that can be enhanced to take
advantage of Logistics Information System features, or a simple query using structure S012 can be created.
How to enhance LIS for MM.
http://scn.sap.com/docs/DOC-50821
http://scn.sap.com/docs/DOC-50822