Though the system identifies and calculates variances, they are not automatically dealt with by the system. Hence, these variances will remain at the cost center as a period-end balance and you need to act on that in one of the FOLLOWING ways:

• You may do actual activity price CALCULATION to revalue all INTERNAL allocations with a newly calculated price (as against the initial planned activity price), and post the difference to all the cost CENTERS which INITIALLY received the allocations. This will help you in clearing all or a portion of output price variances.
• You may ‘transfer’ the variance balance to other modules (such as CO-PA) for further analysis.
• You may make additional automated allocations within CO-OM-CCA to one or more cost center.

Though the system identifies and calculates variances, they are not automatically dealt with by the system. Hence, these variances will remain at the cost center as a period-end balance and you need to act on that in one of the following ways: