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

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Question 1. To check how the systems valuates the Order.While in CO03
1. Click the "control data" tab and take note of the costing variant under header Costing in the field CostingVariantPlan
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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.
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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 . Ill post you later .
But you have to read the tables afko,afpo,afru,caufv,cost ..etc
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PLANNED AND ACTUAL COST IN A PROCESS ORDER

From where the planned cost of material and activity types in cost itemizationafter creation flow ?From where the actual cost of a material and activity types in cost analysis of process order after confirmation flow?

You may be knowing you give Costing Variants ( Both actual as well as Planned ) in Order type. These Costing variants contains Valuation variants which says which costs are to be taken while creation ( for Planned Cost ) and Actual cost ( while confirming and Moving Goods) to be calculate. These Variants decides mode of Cost Flows.
Now, Data in Planned costs are Standard Cost figures or Current prices for material or Planned Prices of Activities.
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Transfer to PA the target costs of a production order

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1. Check your settings in KE4U - Strategy 001 must be assigned to PV=01 and Rec Type F
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Actual Over Head Calculation for process order

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Now for the finished good create material cost estimate with quantity structure
Create standard cost estimate (marking and release to be carried out)
now for the same old process order in the cost analysis u can see different value for total target cost
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1.Check the length of break timings defined in the resource that is assigned in the phase.
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We have following formula has been maintained for processing time calculation in resource.
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Edited by: nilesh sankpal on Dec 8, 2011 5:47 AM

Hi Mangalraj,
Thanks for your reply.
We have not maintained ay reduction levels in OPUZ for plant and order type combination.
In resource, we have 2 hrs break time and total operating time is 18.50 hrs.
I got following SAP help link for calculation of duration for processing time.
http://help.sap.com/saphelp_46c/helpdata/en/b1/c04387439a11d189410000e829fbbd/content.htm
Is processing time is calculated based on following formula.
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Can you please correct my understanding here?
Thanks in advance.
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Cost balance against process order.

Hi Guru,
1)I have one error in process order , in that user has reverse order, all material movements has correctly reversed.
But there is still cost balance in that particular order which is due to price difference. How can I post this difference ?
2)Again in certain process order which is cancelled(cors). by mistake, user has reversed settlement through ko88 , due to this order having cost balance.
When I going to do ko88, system gives message u201C there is no accured amount,settlment is not possibleu201D. How can remove this cost balance?
you reply is valuable.
Regards
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Hi,
But there is still cost balance in that particular order which is due to price difference. How can I post this difference ?
Error : Balance of order xxxxxx is not zero
issue is due to Goods movements were posted even after the variance was posted , thus balance is not ZERO.here goodsmovents should be reversed & should run the varinace calculation again.To run the vaiance calcualtion (KKS2), order should have the status of DLV or TECO.
When I going to do ko88, system gives message u201C there is no accured amount,settlment is not possibleu201D. How can remove this cost balance?
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You can remove the cost balace by running the variance calcualtion( KKS2)
Thaks,
Rajanikanth

Target cost calculation in Process Order based on Variance Calculation

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