Engineer to Order Scenario-Target Costs and Stock Valuation

I have got a query  pertaining to Engineer to  Order Scenario. A production order has been created with WBS element as the account assignment .Its a valuated project stock scenario, with configurable material. As per SAP standard behaviour  and my limited knowledge, the Goods Receipt for FERT/HALB happens according to either of the four strategies:
•     Standard Price ( if there exists one)
•     Customer Exit COPCP002
•     Sales Order Cost Estimate
•     Preliminary Order Cost Estimate for prod order
However ,I have come across a case where although a preliminary order cost estimate exists for the production order, the system is not able to determine target costs. As a result the entire variance is posted as remaining variance at the time doing a variance calculation on the production order. Moreover at the time of Goods Receipt for FERT material,the system passses an entry Price diff A/c -Debit to Cost of Production, instead of debiting Inventory  and crediting cost of production(Price Control is S, no standard price exists for the material)
Thus my query is :
1) In case of Engineer to Order Valuated Stock Scenario where prod order is created with reference to WBS element, how is the standard price (or target costs for version 0) determined
2) Under what situation at the time of goods receipt ,will an entry " Price diff A/c Dr & cost of production-Credit will be posted, instead of  Inventory A/c being debited?
Awaiting a reply
-Regards
Amit Kulkarni

Hi Amit
the easy answer first: The standard price is just taken out of the material segment without WBS assignment. That means if you maintain a standard price in the accounting view of the material master for the material number + plant that will be the fallback to be used. That will at least reuslt in a inventory posting, instead of pure price differences (against a price of zero)
Why your production order cost estimate could not be derived I cannot say. But he first startegy will be to search for the cost estimate to the WBS. Is there not something in the project system to perform a project costing and save it? in that case that will be searched and used for the order target cost and inventory posting.
best regards,
                  Udo

Similar Messages

  • Target cost and actual cost not picking in production order

    Hello,
    The target cost and actual cost is not updating in production order when I display it in CO03 in cost analysis.
    Even though we have maintained planned price in KP26.
    Please suggest how it can be populated.
    Best Regards,
    Tapan

    Hi Tapan
    For Target cost
    1. Your std cost must be released before Goods Receipt
    2. There must be goods receipt posted on the prod order
    3. You must calculate variances in KKS1/2
    For Actual Cost
    1. Post Goods receipt and Goods issues
    2. See if any mat movements are pending in COGI
    3. Ensure that operation is confirmed in PP and no entry is lying in COFC
    Regards
    Ajay M

  • 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)

  • Huge Variance between Target cost and Actual Cost

    Hi,
    In Product Costing,I am getting Huge variance between Target cost and Actual Cost.It is showing the Target Cost as ZERO.Why i am getting this target cost as Zero? what could be the reason? Kindly help me in fix this issue.
    Thanks
    Supriya

    Dear,
    First do the GR final DEV for Production order
    You need to do the variance calculation in KKS2, then when you save the variance, the target cost is calculated.
    Target cost appear after GR.  And you will get the Variance also right.
    Please try and come back.
    Regards,
    R.Brahmankar

  • Target Cost and Actual Cost

    Hi All,
    When is the target cost and actual cost gets populated and from where does the data comes from liek labour,machine,overhead cost comes?
    Thanks in advance

    Dear Friend,
    speaking from controlling point of view, target and actual costs will be flown from "costing variant planned" and "costing variant actual" respectively.In above mentioned varinats, whats the process has to be followed to calculate  material costs,activty costs,overhead costs etc will be defined. These variants will be assigned in order type dependent parameters OPL8.
    Target Costs - In standard cost estimate(ck11n),target cost will be calculated  in the following way
                              -material cost from material master and BOM
                              - activity costs from routing( for this u need to plan the activity costs in KP26)
                              - other costs from the definitions of planned costing variant.
                       - after running the standard cost estimate,u need to mark n release(ck24).
    Actual Costs - material costs frm goods issues (via goods mvmts thru MBIA,MB1B etc) against
                          production/process order.
                              - activity costs(as per the price u plannned in KP26)through  operation confirmation in
                                COR6N/CO11N.
                              - any other costs like overheads,cost center issues etc as per the process defined
                                in 'actual costing variant'.
    Hope this will clear your doubt.
    Rams.

  • Process Orders analysis Target Cost & Quantity is showing as zero

    Hi,
    I am facing a very pecuilar issue.
    On analysing the cost (COR3) of my Process Orders the Target Cost & Quantity is showing as zero.
    However, actual costs/quantity is showing correct.
    What could be the possible reasons for the same.
    Thanks in advance.
    Regards,
    Vikrant Sood

    Hi,
    Are you done with Goods Receipt(GR) from production to Inventory?If GR is not done,you dont see target costs in COR3
    Check standard costs of the finished material in MM02-->costing veiw2.If there is no standard costs for materials,you dont see target costs in COR3.
    Hope this helps you.
    Thanks,
    Anusha

  • Diff erence between  target cost  and plan cost

    what is the diffenece between target cost and plan cost , in product cost controlling?

    Hi
    Plan cost is some thing anticipated cost i.e cost estimates here we can say the standard cost.
    Target cost is the cost of (yeild) of the production at plan cost.
    Ex: Standard cost for X product is 10
          production lot size is 100
          production yeild is 90
    then your plan cost will be = 1000
    and target cost will be       =   900
    and the variance of 100 of 10 units will be as variance.
    Regards
    Laxmiprasad

  • Actual / Planned / Target Cost and Quantity

    Hi Experts,
    In the company that I am working there is the need of having a report with the following information:
    Plan Cost, Actual Cost, Target Cost, Planned Quantity, Actual Quantity for diferent materials using the cost component split structure or with the different accounts.
    Can anyone helpme with this need?
    Regards
    Edited by: DAG123 on Jun 30, 2011 2:59 PM

    Hi
    COSP: For External Postings (Target/Plan/Actual)
    COSS: For Internal Postings (Target/Plan/Actual)
    COSPD (Actual only): Settlement entries i.e. GR and GI upon confirmation, for Primary cost elements
    COSSD (Actual only): Settlment entries i.e. activity confirmation
    Target/Plan/Actual is differentiated by a separate indicator
    br, Ajay M

  • PLM table for Internal Order budget, Actual Cost and Actual Hrs

    Dear all
    In cProjects version 4.0, we have integration with existing ECC 6.0. We create Internal Order manually and assign it to cProjects.
    One cProject  having one Internal Order.
    Resource Planning part is managed in cProjects while Actual Time keeping(CATS with reference to Internal Order), budgeting of Internal Order, Material and Service Procurement which is done against Internal Order is managed in ECC. ECC and PLM are separate systems.
    We have RFCs established to transfer actual hrs, budget and actual cost data from ECC to PLM.
    Which is the ABAP table in PLM where we get linking of cProject with Internal Order and also actual hrs, budget and actual cost data in PLM system?
    Thanks & Regards
    Ashish

    actual hrs, budget and actual cost data in PLM system?
    Its not there, actual hours can be found in DPR_Task but it needs to be transferred by running a report.
    The planned cost etc is also calculated at runtime and passed on to Costing object in ECC (Int order/PS)
    Actual hours will be in CATSDB in ECC
    needless to say actual cost will also be there in ECC and not in PLM, PLM only displays at runtime based on RFC.
    If you want to try, Break the RFC and try to check the Evaluation..
    Niranjan

  • COPA document in ETO (Engineer to Order) Scenario with milestone billing

    Hi All
    I have some issue in COPA document generation in ETO Scenario.
    In ETO scenario, we have following important points
    --- Milestone billing (30 % downpayment, 60% on shipping and remaining 10% with closing invoice) in the Billing plan.
    --- We have dropship ment kind of scenario where the Purchase requisition is created while creation of Sales order.
    --- While GR for PO whill be statistical and we will be booking COGS in GR
    We have an issue in COPA document while billing. The quantity field is not getting updated.
    Please help.
    Regards
    Neeraj Bhardwaj

    Hi,
      Is this the same functionality as Revenue Recognition in SD ? In that case please refer note note 619498.
    regards
    Waman

  • Production Order wise List for  Target cost v/s Actual cost

    Dear Sir,
    We have make to order scenario . We want to have a list giving Production Order wise "Target Cost" and "Actual Cost" . The purpose of list is to analyze the Variances Production Order wise .
    I request to kindly guide us , how can the above list be generated please .
    Regards
    B Mittal

    KKBC_HOE - With Defined Summarization Hierarchy
    S_ALR_87013104 - Sales Order Selection
    KKAC - For Sales Order with Assigned Orders
    KVBI - Actual Costs
    KOB3 - Variances

  • 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

  • Total Target Costs not updated in Process Order

    Hi All,
    I  have a scenario in a Process Order,
    The Process order is Released, Goods Issued and GR done. But the when i go and check the Cost Analysis i did not see anything in the Total Target Costs  and Total Target Qty coloumns agianst all the cost elements. It show as zero for all.
    It looks very strange. There is variance in the component issues and GR  as well. I simulated for the same material with a new Process order and found the vales get populated automatically on GI and GR's with variation against requirement quantity.
    Could any one explain me why it is so ..? or is my understanding is wrong.....?
    Thanks for your time and patience.
    Regards,
    Srinath V

    Srinath Venkatr,
    I think you are missing PP CO integration configuration during master data creation. There might be information massage to you during process order creation saying , 'Logs during Cost calculation", you are skipping the same and creating process order withought resolving the same.
    Check whether you followed all the steps for product costing.
    Material master,
    BOM,
    OPKP:-Controlling area-activate components and Controll indicators
             :- Assignment of co codes
    KS01: Cost center
    KA01/KA06:- Primary/ Secondary Cost elements
    KL01:-Activity Types
    KP26:- Activity Price Planning
    Then Work center/Resource- assign these cost center and activities with costing formulas.
    Then Routing/Recepi-
    After master data, demand management,MRP- process order. while creating process order check cost calculation errors.
    Hopes that will clear your dought
    Tara

  • Target cost calculation in Process Order based on Variance Calculation

    Hi all,
    I have a question on Target cost calculation in Process Order. My understanding is, the Target Costs gets calculated when the confirmation and GR is made for the Process Order.
    But if the confirmation/GR is not done, whether the target costs gets calculated for only the activity types after the Variance Calculation (KKS2).
    I have two scenarios. In one, the target costs got calculated for the activity types without the confirmation/GR after the Variance calculation.
    In another scenario, the target costs are not getting calculated for the activity types without the confirmation/GR if I try to do the variance calculation in KKS2.
    SO i want to know which scenario is correct?
    Can anyone answer this question?
    Thanks and Regards,
    Brijesh

    Hi,
    In general, the target costs are calculated once you deliver the order.
    Target costs for the components and the activities are updated only once you deliver the order and the target cost for the finished product gets updated when you do the variance calculation.
    Consider your scenario number 1 - you said the target costs got calculated for activity types without confirmation / GR after variance calculation.
    Now, if the order is not having any status like PDLV, DLV or TECO it will not calculate the variances in the first place.
    Your second scenario is correct - without GR the system does not calculate any target costs. Also it will not calculate any variances because the order status is still not DLV.
    Best Regards,
    Sameer

  • Target Cost in the settled process order become zero after cost deletion

    Dear all,
    User has standard cost estimates created in Jan 2010 that valid until the end of 2010 for every material in the system.  user created a process order in April 2010. Target cost of the order was created based on the standard cost estimate and recipes as well as order qty.    The order was also confirmed and settled in April 2010 without problem. 
    However, after I deleted all old costing estimates before I did a costing run for all materials in May 2010, the old order was resettled and all Target cost is removed from the order.  I guess system try to look at April costing estimate but it is not there since it was deleted before I created the new costing estimate in May.  Therefore, all varainces are throwed into remaining variances since the target cost become zero.
    Other than mark the settled order for deletion or keep all old costing estimates,  I am just wondering is anyway in the configuration to prevent the system to recaculate the target cost again for the settlement so I can avoid the problem happens?
    Thanks.

    Hi,
    Target costs are only calculated after goods movements have occured on the order, the Target Costs are then calculated during the Variance calculation.
    Target costs will only be calculated after the first goods receipt has been posted to the order. Also you have to ensure that the information to calculate target costs exists on the system in particular in OKV6.
    This estimation is based on the customizing for the Target cost version in transaction OKV6 as in turn will the "real" calculation of the Target costs via the variance calculation.
    So in OKV6 the Target cost will be based on preliminary costing on the order, an alternative cost estimate or the current standard cost estimate. Importantly if the choosen option is not fulfilled e.g. no current standard cost estimate, the target costs will not be predicted or calculated.
    regards
    Waman

Maybe you are looking for