Percentage based overhead based on target cost of actual production

Hello,
I'm trying to calculate percentage overhead (overhead as a % of total cost of production) using the usual overhead group, overhead key ,costing sheet, etc.
Also put the overhead group in the material master.
Although I am getting it correctly as part of product cost planning, when it comes to calculating this overhead on a production order, it does it based on 'total actual costs' posted to the order. I want it to calculate the % overhead based on the standard cost of actual production (the target cost).
I would really appreciate some help on this.

Hi
If that's the requirement, you can achieve through template allocation. Refer the doc contributed by arturo senosain
I use a workaround for such cases. Add an activity type in routing with activity quantity same as base qty of routing.. Say, 1 PC
Maintain the activity price as .15. And you are done
Br. Ajay M

Similar Messages

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    Hi All,
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    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.

  • 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 for a Production order

    Hi
       How to get Target Cost for a production order?
    Thanks
    Naga

    Well Naga, Right now I’m on HR implementation , but I programmed same kind of requirement two years before , but I got planned cost and actual cost .
    I also notice “cost analysis" the cost is not exact , it wont read the value from KP26 of that particular month .
    Here I am talking about 4.5b system.
    You can find the sales order ref on production order, and your production order is made up of your different kind of material like scarp, raw, semi-finished etc
    Here are the steps I followed .
    1- I read the material which you can see in material component on production order in Co03.
    After that I take the qty and also multiply by the cost at which machine is posted .
    I have that programs, as I need to find out . I’ll post you later .
    But you have to read the tables afko,afpo,afru,caufv,cost ..etc
    Do you see information structure I refer you , If i am not wrong this CO3 ( cost analysis ) report use report painter ( Tr.Gr51,Gr52 ) . you can also see by going in to said transaction which information structure its populating . This’ll also help you.
    Hope this’ll give you idea!!
    <b>P.S award the points.!!! DOn`t forget :)!!!!</b>
    Good luck
    Thanks
    Saquib Khan
    "Knowledge comes but wisdom lingers!!"
    "Some are wise and some are otherwise"

  • 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

  • Valuated WIP at Target Cost or Actual Cost

    Hi,
    In a production order, how do we valuate it at target cost or actual cost?
    Thanks,
    Teo

    Hello Sir ,
    As per sap wip is valued at actual cost only.
    Thanks & Regards
    A.V.J .Krishna Reddy

  • Transfer to PA the target costs of a production order

    Hi everyone,
    How can I transfer to PA the target costs of a production order?
    Thanks
    Cátia Pereira

    Hi
    1. Check your settings in KE4U - Strategy 001 must be assigned to PV=01 and Rec Type F
    Tick the "Mat Cstng" indicator and assign COPA Qty Field ABSMG
    2. Assign costing key to Mat Type in KE4J or KEPC
    3. assign Cost Comp Str to VF in KE4R
    4. Assign Value Fields to your variance categories in PA Transfer Structure....
    Tick "Variances to Costing Bsed COPA" in your settlement profile
    Br, Ajay M

  • Target cost for co-products which can be substitute

    Hi,
    Is there somebody who is working with co-products which can be different each time you consume raw material?
    Here is the situation when we want to analyse variance Actual vs Preliminary cost.
    We use Production Order with Co-Products.
    When we create a Plan Order, the order costs and qty are calculated for the order header.
    Actual costs and qty are charged to the order header as they are incurred.
    PLAN: 
    Main co-product   900 PC
    Co-Product A         50 PC
    Co-Product B         50 PC
                               1,000 PC
    Consumption:
    Raw material         250 PC
    ACTUAL:
    Main co-product    800 PC
    Co-Product A        100 PC
    Co-Product B        100 PC
                               1,000 PC
    Consumption:
    Raw material         260 PC
    An apportionment structure is used to apportion the costs and qty to the primary products and co-products.
    PLAN
                                                              Raw Material
    Main Co-Product   90% * 250 PC = 225   PC  
    Co-Product A          5% * 250 PC =   12.5 PC
    Co-Product B          5%  * 205 PC =  12.5 PC
                                                                250 PC
    ACTUAL
                                                              Raw Material
    Main Co-Product   80% * 260 PC =   208   PC  
    Co-Product A         10% * 260 PC =    26   PC
    Co-Product B         10%  * 260 PC =   26   PC
                                                                260 PC
    Variance calculation and settlement are then performed at the level of the order item, not at the header level of the order.
    Here is the target qty calculation made by the system.
    Main Co-Product  250 PC * 800/900 * 80% = 177.78 PC
    Co-Product A        250 PC * 100/ 50 * 10% =    50.00 PC
    Co-Product B        250 PC * 100/ 50 * 10% =    50.00 PC
                                                                               277.78 PC of raw material
    Since variance calculation is performed at the order item level, that means you can not substitute one Co-Product by another one. 
    In our business, we can substitute Co-Product by another one.  In this example we planned to make a total of 1,000 PC finished products and we produced a total of 1,000 PC finished products.  So the target quantity for the consumption of raw material should be 250 PC, not 277.78 PC as calculated by the system.
    Any idea?
    Regards,

    Hello Ajay,
    I think  i am missing some thing here. For Configurable product or VC materials there is no standard cost. Costing tab 2 standard cost is zero.
    When a make to order sales order is created with this VC materials, based on system settings and quantities system picks up the correct BOM and routings. Through costing funtionality with in sales order , the sales order need to be costed and marked.
    This sales order cost is used for  valuation of material movements including 101 from corresponding productuon order and 601 for delivery.
    As far as i know for VC material target cost has nothing to do with Standard cost, because there is no standard cost at all for the material.
    Please clarifty
    thanks
    sapfreek

  • Target Cost Verion in Product Cost

    Hi,
    I'm not able to create Target Cost Version (1,2,3.....) in variance Calculation pertaining to Product Costing.
    I'm getting this message:
    Version 1000 1 not intended to be used as the target cost version
    Message no. KQ243
    Diagnosis
    The specified target cost version has not been flagged in central version maintenance as suitable for variance calculation.
    Procedure
    1. Check the entries in the central version table.
    2. If appropriate, flag the version as suitable for variance calculation.
    Please help & guide urgently.
    Regards,
    Viki
    [email protected]

    Try running a variance analysis, and see if it civd you an error message. typically this occurs when a SCE estimate was created after the process/production order was created. So check the dates of the two orders that you have, and compare with the date of the SCE CREATION.

  • The target costs in target cost version 0 are missing

    Dear Experts,
    I am getting following error while running Varience cost through KKS2:
    Only remaining var. in version 0 - no target costs for 000001061683 0001
    Message no. KV151
    Diagnosis
    For the calculation of variances with 000001061683 0001, the target costs in target cost version 0 are missing for the following reasons:
    There were no planned costs and/or planned quantities (see earlier message).
    The quantities on which the planned costs were based are zero in the time period concerned. This may be caused by the fact that no goods receipt for a cost object (such as a product cost collector or production order) has been entered.
    This results in target costs of zero.
    System response
    Because no target costs were calculated, the difference between the
    planned and actual costs could not be broken down into variance categories. The difference is updated as a remaining variance.
    Please suggest, How to proceed.
    Regards

    First check this...
    1.Go to t.code OKEV.Select Controlling Area 2222 and create Plan / Target version.
    The standard system supplies the following target cost versions:
    Target cost version 0 ( total variance)
    The amount of the total variance generates a posting in Financial Accounting during settlement.
    For this version, select actual costs as the control costs and standard cost estimate as the target costs.
    Target cost version 1 ( production variance)
    For this version you choose actual costs as the control costs and planned costs as the target costs.
    Target cost version 2( planning variance)
    With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs. For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.
    Target cost version 3 (production variance of the period)
    You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.
    2.Also try In CO02 goto cunctions...cost...
    3.Go to transaction OKV6 these settings control what values are used to update the target costs.
    Target cost comes from the standard price calculated when doing a costing run. Actual costs are costs that you incur during the production order (we can reassign costs during the order so this could be different from the standard price).
    Target Costs=Actual Quantitiy X the Standard Cost Estimate Price..
    Probably the stand.cost estimate will be missing in ur case...

  • Material costed, production order with no target cost

    I've a case of production order and I don't where to find information to solve it.
    I've a product A costed from March. Standard cost is correct.
    I'm creating a production order now. The cost estimate is calculated during the delivery.
    I've confirmed order by CO15. I've created a variance by deleting 2 items in bom of order. And confirm less than wanted on other component. But I don't think these variances are linked to my problem.
    In CO02 and cost analysis : target cost of my product equals 0.
    I've checked my prod cost variant and choices are : std price, L price from PIR, moving average price.
    Thanks for your helps
    Christophe

    How can I see that ? I've checked that material cost has taken the bom during the cost explosion. Components are also costed.
    I've noticed that target cost appears after variance calculation for product.

  • 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

  • Target costs for product cost collector

    hi,
    can anyone tell me when are the target costs updated for product cost collector. it is after we post actual costs or after we calculate variance.
    Thanks

    Hi Elaine,
    Thankyou very much for the Information. In our case when we create new product cost collector and cost it and post actual costs to it, system is showing target costs on the product cost collector even before variance calculation but for product cost collectors which are existing from long time system is not showing target costs after we post actual costs. we have created new cost component structure recently and its active from april 1. does this have any impact on the target costs. Please let me know if you have any idea on this.
    Thanks,

  • Target cost zero in process orders

    Target cost is zero in process orders...
    I did investigation on the forum and folks have suggested could be standard cost is not released at the time of process order release...
    I need help in setting that configuration...
    regards

    Check if you have released Std cost estimate. If No release it if Yes then check if the process order material is having any GR Qty. Becuase Target costs are planned costs for actual production.

  • TARGET COST ZERO

    Hi
    In the production order its not shown the target cost of the order therefore it shows high WIP value. Pls, advice why is that and is there any configuration on that.
    Reg
    K

    All material cost run (Ck11n) has done propaly and GR and GI. But it is not showing the target cost in the production order.
    According to this all the actual cost taken as the production variance of the product. So It indicate huge WIP value.
    Pls advice how to get the traget cost value. Is there any other configuration change ????????
    Thanx
    K

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