Thanks for your reply, There is difference in activity type pricing – it is not taking from routing where I have to make the configuration setting to correct the cost one thing to note here in production order – if I released the production order with the same cost and make the goods issue against this production order, activity confirmation, and finished goods receipt In stock against this production order – then at last while I am checking the variance against the production order- there was no variance – I understand that there was no variance recorded compare to plan and actual but since there was variance on production order costing analysis.

Does it possible to include the corporate cost on standard cost – this will help to get a favorable variance or what option we can take to have more profit margin Can we make the Z report for splitting the variable and fixed cost? And how can we do sensitivity analysis in sap – which module covers this scope For your reference attached Excel file for Complete manufacturing scenario – the end to end steps Plan standard cost Actual costing Variance analysis Sales order – make to order scenario Corporate expenses record while checking profitability analysis on a product Income statement