Differentiate Planned Cost, Actual Cost & Targeted Cost

Hello Friends,
I am searching for job and went for interview in Wipro. They asked me the difference between Planned, Actual and target cost..... I tried to search on Google and SAP Blog's but couldn't find the appropriate or understandable answer yet, So it would be great if you you can guide me a bit on this......
Thank You,

Hi,
Any PP related queries you can search in Forum ERP: Manufacturing.
Pls refer the link.
planned cost and actual cost
Thanks,
nandha

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Target cost, planned cost, actual cost difference

Hi!
As per my understanding , the target cost, planned cost, actual will be calculated like blow:
Actual cost = Actual quanity * Actual price ( standard price or moving average price) existed at the time of goods movement.
Planned cost = Planned quantity * Planned price ( standard price or moving average price) existed at the time of production order release based on valuation variant strategy.
Target cost = Planned Quantity * Actual price ( standard price or moving average price) when calculating variances.
whether above formulas are correct?
I have one scenario, where in process order, I am not seeing Planned quanity for compoenent/raw material, but target quanity is existed. How it is possible. When I have checked the BOM in process order, the BOM does not contain the componenet.
regs,
ramesh

Hi,
Target Cost = Costs as per the standard cost estimate * Actual Qty delivered.
For e.g. Std cost for one unit of material-x is as follows.
RM 1 - 10kg * 10 /- = 100
Activity 1 - 5 Hr * 50 /- = 250
If the actual delivery from the production is 2 units, then target cost will update as
Under Goods Issue, RM 1 - (10kg*2units) * 10 /- = 200
Under Confirmations, Activity 1 - (5 Hr*2units) * 50/- = 500
Total = 200+500 = 700
Target cost for goods issue/confirmation of activities will update only when the Goods receipt has been done but not at the time of goods issue or Confirmation of activities.
Target cost for Goods Receipt will update only when the variance has been calculated for the order.
Regards
MadhuSekhar Gupta G

Target/Actual/Planned Costs inProduction Order

All,
Can any one explain with example how planned, target,actual cost are calculated for a production order. and also when exactly these are recorded.
Thanks in advance
Sivaram

Hi Sivaram
Target Costs is Std costs for actual goods delivered
Actual Costs are for actual cost of material and activities for actual delivered stock
Here, delivered stock is same in both only the costs consdiered are diff
The diff between target and actual costs is posted to variance.
Goods movement is done with actual price of raw material generally. If u hv price contrl S for RM then it is at standards and all variances are only related to quantity.
Actual costs are compared with standard costs of goods delivered to stock and varainces are calculated for the production order
Regarding scrap costs - it should be separate line item. It depends on many other settings in BOM, Routing, MM and Cost comp structure. Depending on where the scrap is defined calculations are done
If u have defined planned scrap, and is part of cost comp structure, u can get plan vs actual scrap costs
You can also have scrap as not part of cost comp structure and record only actual scrap costs.
Please assign points if the above clarifies further as a way to say thanks

PS (plan vs actual costs) Report

Hi,
I have to generate the above report. How can I diffrentiate between Plan cost and actual cost. Is there any business contect report for this ? can anybody throw light on this.
Regards,
Bill

Hi Bill,
There is no std content for this as far as I know , Not sure if your report is based on cost for a given version then its really a mystery . If you are looking to pull the cost for PS then check the table RPSCO in r3 , this is the PS cost table , and you can differentiate Plan/Actual based on the Field Value type .
hope this helps ,

Target Cost (Planned Cost)

Hi All..
Preliminary Costing of Product Cost Collector is created. After backflush activity, the PCC display is not showing TARGET COSTS in Costs detail screen.
wat could be the cause for this..?? how to rectify it..??
As Target Costs are all ZERO ( for materils and activity) Target / Actual variance shows 100% variance..
Please guide me to solve dis..
With regards,
LN

Hi LN
To get the target cost. You should have runned the cost estimates for a material through CK 11N or For all material in CK 40 N.
Then only the target cost will appear. Otherwise planned cost only will appear.
Regards
J . Saravan

Target cost and planned cost

What is the difference between Target cost and planned cost in discrete production orders? Please advise.

Dear
Planned costs will be updated after creation of production order.
Target costs will be updated after delivery of the production order.
Plan cost = Plan qty X Planned price (std. cost estimate)
Actual cost = Actual qty X Actual price
Target Cost = Actual qty X Planned price (std. cost estimate)

Actual Costs , Planned Costs and Variance

Hi,
I know that there is a standard function module that gives the actual costs , tha target costs and variance, K_KKB_KKBCS_ORDER_REPORT. But is there any Funcion Module for calculating the Actual and planned costs and variance? or could the same FM be used for the purpose?

OK

Planned cost/target cost/control cost

Dear Expets,
Ps guide me on the below.
Difference between - planned cost/target cost/control cost and Plan qty/target qty/control qty in MTS or MTO.
your response will be highly appreciated.
regards
Raman Rana
Moderator: Please, avoid asking basic questions

Dear Raman,
planned costs:
The costs anticipated for a particular undertaking (such as an order).
Target costs:
The costs expected to be incurred when a specific quantity is produced.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of a service unit (such as the planned cost of a production order) and the control quantities (such as the yield delivered to stock).
Target costs can be used for purposes such as:
u2022     To determine variances
u2022     To valuate work in process
u2022     To valuate unplanned scrap
Control costs:
The costs that are compared against the target costs when the variances are calculated.
In Overhead Cost Controlling (CO-OM), the control costs are always the actual costs.
In Cost Object Controlling (CO-PC-OBJ), the control costs are either the actual costs less the work in process and scrap or the cost calculated in the preliminary cost estimate for the order, depending on the target cost version.
br, Guido

Diff between Planned Cost - Target Cost

Hi all of you,
Could you please explain me the difference between Planned Cost and Target Cost. Why do we go for the settlement of Variance (Diff between Actual cost and Target Cost).
Please give me your valuable suggestions regarding.
Thanks & Regards
Ramki

HI,
Let us say, for the product X, my planned cost through standard cost estimate is 100 Rs. This has been found through executing the t code Ck40n or Ck11n.
One more assumption is, We have created production order with quanity 10. Did Goods receipt 10 nos.
Now ,,
Planned cost is = Std cost estimate cost x Qunaity=100 x 10= 1000
Target cost: This is being used for comparison purpose. You can have many versions of cost using target cost. let us say, I want to have target version price should be equal to priliminary cost estimate instead of std cost estimate. This can be achived through customizing in t code OKV6. And production order will pick up the target cost value as per the target cost version.
This target cost field in Prod. order gets updated once you run variance calculation.
Actual cost:
Standard cost * actual qty= 100*10=1000
Settlement:
While doing GR/GI to order, the cost is captured under the production order. if there is a difference between actual and plan, that should be posted to Price diffference account.That activiry is being done at the time of settlement.
vijay

Report for extracting the actual and planned cost from service orders

HI all
we are creating a report in BI for Module - Customer service . LIke , the report is all about how many complaints created in the system and how many completed technically and what is the cost involved for each complaint .
Like we want the comparision between the planned cost and the actual cost .
Now to give the logic to the BI Team for planned cost and actual cost , please suggest the flow of logic or table flow to arrive the planned and actual cost
thanks in advance

Hi Marthand,
I am not sure which datasource your are using. In this case, you can use the 0VALUETYPE to differencitae between th eplan and actuals. Normally Plan which is budget will have value 050 and for actuals will have 010. For costs, you will have one key figure and at the reporting level, you will have the costs restricted by the value type for plan and actual to make comparisons.
Hope this helps.
Regards,
Srinivas

Report for production order with actual and target cost for each

Hi
Is there any report that gives me the list of all production orders in a month with its respective actual and target costs?
I can use COOIS to get a list of production orders, then double click on the prod order, then click on goto and then to cost analyis.. but can i avoid going through all this and get a report with the details i need?
thanks in advance

Thanks a lot for that.
I'm a little confused with the columns in the report.
Which columns should I keep for my requirement? -
Production Order
Total Target Cost
Total Actual Cost
Total Actual Qty
Total Target Qty
Thanks

Planned vs Actual Cost Report (with variance) for PM Orders

Hi Experts,
We are using the project system to collate order costs for annual shut work. We have a requirement for a report to show 25% variance between planned and actual order costs (maintneance order).
At this stage, we dont mind whether this is implemented in the the PM system, or the PS system.
This is a fairly basic / common requirment. Are there any standard transactions we could use to:
1. Select a list of orders using standard selection criteria.
2. Select a % for variance, e.g. 25%
3. Display a list of orders where the planned vs actual costs were greater than 25% and what the actual variance is for each order?
Thanks,
Maikel

Hi Maikel,
I have never seen any such scenario, but the best thing that can come to me is for the shut down activities you muct have created a Revision, then based on that Revision you can take a dump of all the orders with Planned and Actual Cost, in the excel, and there by putting the formulae you can definitely have the Varience report.
Hope it helps you.
Regards,
Yawar Khan

Function module for calculating planned and actual cost of production order

Hi ,
Do we have any standard function module for calculating planned and actual cost for production order?
i need to implement this in a Z-report.
Thanks
Srini

Hi,
try below function module
CRMCO_GET_PLAN_ACTUAL_COSTS
CO_IH_GET_PLANNED_COSTS_TOTAL
Regards,
Sankaran

In which table production order planned cost and actual cost i can see?

Dear PP Guru,s,
from which table i can see productuion order planned and actaul cost. i checked following tables AUFK, AFVC, AFVV, CAUFV, AFRU, AFKO, AFPO. but i did not found planned cost and actual cost field. is there any other way to get this data with respect production order?
Regards,
sree

Dear,
Planned and actual costs of prod order from COEP, COSS, COSP S027 tables
production order shows the planned cost based on the quantity structure.
Please refer my reply in this thread for details,
Re: Actual Halb Material Cost
Regards,
R.Brahmankar

Planned cost & actual cost are same in process order.

hi,
I have created new order type for process order.
when i made process order & i going for confirmation in cor6n , on screen fixed & variable overheads values are coming which system had taken from receipe.
when i did changes in that values which are in hrs & confirm & settle the order, in cost analysis plan cost & Actual cost was seem to be same.
I dont get why this is happen ? is there any config in order type.
thanks in advance.
regard
sanjay.

Check in cost analysis, IN plan VS actual Is activity is available?
I feel U haven't maintain activity type in costing view of workcenter

Differentiate Planned Cost, Actual Cost & Targeted Cost

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