SAP Note 23617 - Resource-usage variance for materials

Symptom:

In variance calculation for orders, production cost collectors, or cost object IDs, a resource-usage variance for a material is expected because a different material was used than had originally been planned. What the system actually calculates, however, is a quantity variance, input variance, or remaining variance.
Transactions: KKS1, KKS2, KKS3, KKS5, KKS6, KKP5, KKPT

Cause and prerequisites

Costs are written to the above objects under the combination cost element, origin group, and material number. If planned costs but not actual costs (or vice-versa) exist for such a combination, a resource-usage variance is calculated in the amount of these costs.
The costs are always written under a cost element.
The origin group is only used if an origin group is assigned to the material in the material master. Otherwise the origin group remains on the object unused.
Costs are only written under the material number if this is defined for the material (i.e. when the "material origin" field is selected in the material master). This is only possible in Release 3.0. If the material is not selected in this way, the material number remains on the object unused. In Release 2.1/2.2 there is no material number in cost accounting objects, and no selection field in the material master.
If the material consumed has the same combination as was actually used for the planned material, no resource-usage variance is calculated. Instead, a quantity variance, input variance or remaining variance is calculated (see note 20217).
Examples: No. Planned mat. M1 Act. material M2 Resource-usage
Cost el./Orig/Mat. Cost el./Orig/Mat. variance
1. 400000/H001/M1 4000000/H001/M2 Yes
2. 400000/H001/- 4000000/H001/- No
3. 400000/- /M1 4000000/- /M2 Yes
4. 400000/- /- 4000000/- /- No
In examples 1 and 2, an origin group is assigned. In examples 1 and 3, the material origin has been chosen; this is only possible in Release 3.0.

Solution
If a resource-usage variance is desired, different origin groups should be used for different materials. In Release 3.0, the material origin can be chosen for selected materials. Note: The more detailed cost updating increases the amount of data and the runtime of the transactions, particularly during period-end closing. For this reason it should be restricted to important (valuable) materials.
A change to the material master will only affect cost estimates and material withdrawals that are created after the change. Existing data is not affected.
Remark:
With secondary cost elements, costs are always written under the combination of cost element and cost center/activity type. This cannot be influenced. The resource-usage variance is calculated for this combination similar to a material.