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Variance Calculation issue for Production Order

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Hello All Experts,

 

I understand that variance is calculated based on "Target Cost - Actual Cost". But when I am running a report KKS2 for my production order system is calculating variance on "Allocated Actual Cost - Actual Cost". Can experts guide on this as why this happening ? Please find below screenshot for reference. is it problem with my understanding ?

 

In my understanding Actual Cost means which is coming after confirming the activities via CO11N, now what is "Allocated Actual Cost" in KKS2 ? Please correct me if I am wrong.

 

kks2.JPG

 

Experts guidance will be very much appreciable on this.

 

 

Regards,

Sharu.


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