Target Cost in process order

Dear All,
I have activated the version 0 only and the valuation variant for the actual cost has been assigned as plan price for the period for both of variants of plan and actual. when the order confirmed the actual cost is alone gets updated the target cost is not getting updated for the process order. Kindly advice.
Regards
Vasantha

hi vasantha,
the target cost is been update in two ways that is by copying the previours year actual or by manual planning with regards to the cost objects.
if u have the previours year actual to be copy t code OKKP select the copy actuals, so that it copy the actual as planning.
regards,
supriya thodimela.

Similar Messages

GR Cost not updating as Target Cost for process orders

Dear SAPians,
We are facing an issue in Target Vs Actual cost reporting for process orders. We are creating a process order after cost estimate of that material and doing the confirmations for activity cost. After that, GR has been done for the finished goods of that process order. That GR entry is updating the Actuals values but not updating the Target cost. When I am checking the standard report KKBC_ORD, I am getting the following figures.
Cost Elemnt Text     |     Target Cost     |     Actual Cost     |     Target Vs Act
Inventory Chnge FG     |     0     |     1,472,205.60-     |     1,472,205.60-
Packing Matrl Cons.     |     1,148,142.37     |     1,252,752.68     |     104,610.31
Raw Material Cons.     |     60,463.91     |     50,688.29     |     224.38
Semi-Fin Matrl Cns.     |     181,934.68     |     367,959.56     |     186,024.88
Labour Cost Activity     |     39,735.36     |     39,862.80     |     127.44
Machine Cst Activty     |     41,611.75     |     43,153.01     |     1,541.26
That 'Inventory Change FG' entry is showing the GR posting updating actuals and not target cost. This is causing huge difference in target vs actual cost that will affect the profit and loss figures ultimately.
What am I missing here? What should I do to update the GR amount in Target cost as well.
Shirazi

Dear,
Target Cost on Production Order or Process Order is shown only when Variance is Calculated.
So please calculate the Variance, system will show the Total Target Cost.
Br,Vivek

Target Cost in Process Order not calculated

Hello,
In Process order, after deliver of FG the target cost is not getting calculated,
Could you please help me why the target cost is not calculated in process order.
I have configured all setting for WIP and Variance

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

Target costs on Process orders not calculating

Hi All,
We have released standard costs for all the materials. We have also done Goods receipt for the process order but still the TARGET COSTS are not getting updated.
Can some one tell is any specific config present for the same.
We need to fix the process orders but how?
Thanks,
Hari

Dear Harihara,
<b>You must have all manufacturing master data associated with your manufactured material(s) set up.</b> This includes bills of material, work centres, routings, and activity prices. If you are charging overhead, you must also have maintained the costing sheet and the material master overhead key field.
Hope this is helpful.
Regards,
Naveen.

Std Costing and Actual costing at process Order

Hello Friends,
Followings are the client requirements, Please give me your ideas :-
1 . Costing variant is same for all three - costing run, process order (plan and actual), means there is no prices variance on process order level. ( material at std price, Activity plan price, overhead fix%)
2. Alongwith this above client also need to capture actual result (material at MAP, activity at monthly actual price, overhead fix %)
In this case there is price and usage variance can see.
Now as I think that both scenarios are not possible on process order level. According to me we can do by a customize actual costing cockpit.
Need your openion that do we have any option thru standard funcations of sap to get this requirement. If you need any other explanation , please do let me know.
Thanks
Ravi

Thanks friends. I have done.

Standard costing in Process order for external operation

Hi SAP - PP gurus,
Need your expert suggestion on the current scenario. We are having a sequence of operations in a process order. One specific operation is used to trigger subcontracting activity for completion of some services.
while calculating the total planned & actual costs & variance costs for the process order as a whole , we are not getting the desired results.
The planned cost is not getting calculated or variance is not populated correctly. what might be the problem or is there any alternate solution to approaching this scenario.

I do not have an 'expert' response for you - but I can share my experience and maybe both of us will learn the 'truth' before too long.
In the external processing - indicator in the control key for a phase/operation in a recipe - when it is set, the system requires that either a Purchasing Information Record or an Outline Agreement # and Outline Agreement line item # be entered. If I enter a PIR, the data from the PIR is loaded into the external op fully. This results in a proper cost roll-up and proper processing.
If I use an Outline Agreement + Item # - the system expects me to copy all this detailed information into the remaining General Data fields (that were populated automatically when I used the PIR). I don't have to enter anything except the OA + Item numbers. But if I do not enter a price - then I, like you, get less than acceptable pricing because this operation is NOT priced (I do get a warning - this leads me to believe that SAP will not be populating these fields - the warning is to remind ME to do it --- I want the system to do it since I am specifying the OA + item numbers).
I have searched help and now have posted an OSS note for the answer to this: The PIR does what I want (it has to be created prior to application of course), but because External processing is merely a service and can't be specified by Material # and it only works per Material Group # - then I only have the chance to enter one price per Material Group - and that is insufficient in my situation (I have about 50 materials per each group and each item can have a different price). So I have to use OAs - and not having them able to trigger auto copying into the external op phase - this causes a lot of extra work and risk of data inaccuracy (mis-keying the price, etc.). There does not seem to be a fix - so I think the manual application in the ext op will be your recourse.
Let me know if you have learned more.

Target quantity in process order

Dear All,
The target quantity for the receipe or routing part is not updated in the process order. How to solve this issue.
regards
Vasantha

Hi Vivek,
Can you pl share the cause of the same.
Ulhas

Overhead Cost in Process Order

Hi All
I need your expert inputs / suggestions to apply the correct method of calculating overheads in process order.
Requirement:
To calculate
a. Labor cost
b. Overhead Cost
c. Depreciation Cost of Machine
in a process order. Also .b. and .c. are dependent on labor time entered (a.)
What I have done:
I am new to PP and CO, so with my limited understanding I have done the following:
1. Created activities for labor, overhead cost and depreciation.
2. Created secondary cost elements
3. Created Standard Value Key
4. Added all the parameters (Labor, OVH, DEP)
5. Created a formula for these parameters
6. And used them in Resource and KP26
Problem:
With the above setup I get three values (Labor, OVH, Dep) to enter in the process order confirmation. However I need just one field : Labor time, for all the values to be calculated.
As OVH and Dep should use the same time as for Labor parameter but with different rate (as mentioned in KP26) is there a way out where I can just show Labor variable to be entered to the user and other two use that time also!
Or if you feel there can be different approach for the overheads and depreciation to be calculated kindly write back
Thanks in advance
-Rahul

Hi rahul
I understand you want to use same formula for cossting for the
a. Labor cost
b. Overhead Cost
c. Depreciation Cost of Machine
Then in work center-> costing tab you can mention same formula for the overhad and Depreciation which was using for labour cost.
Please check and come back.
Regards,
srihari.M

Planned cost for process order

Can we see the planned order cost of a process order before confirmation?If can how is it done?

Hi,
To see the planned cost of order before cofirmation,
COR2-> Goto-> cost-> Itemization.
Regards
Pradeep

Target cost configuration

Dear All,
What are the configuration steps involved to derive the target cost in process order. What will be the implication if the target cost is not derived from the process order.
Regards
Vasantha

Hi Vasantha
Target costs are derived from the standard cost estimate only. You were mentioning earlier that the Activity cost is not appearing in the target cost.
Confirm whether they are appearing in the std. cost estimate.
Regards,
Suraj

Target cost is zero in KKF6N

Hi experts:
    I'm using REM. I've released the standard cost (CK40N), created the cost collector (KKF6N, preliminary cost estimate is automatically created). I checked cost estimator using variant "PREM", it's fine. Then I did backflush and GR. But still in cost collector (KKF6N), the target cost is still zero.
    I also tried to calculate variance. But still target cost is zero. But in this client, in some other plants, target cost has value.
    Not sure what I did wrong in master data, configration or transaction. Looking forward to your advce. Thanks.

hi!
thanks for your reply.
I have exeucted CO8b, then system is posting controlling document and profit center document ( no accounting document).
then I have executed KKS2, system is calculating target costs, but in process order cost analysis, the target cost is ZERO only, even for co products also.
while executing KKS2, I am getting error message for other co-products like "Only remaining var. in version 0 - no target costs for 000001000279 0003 (KV151)", as I am receiving only some co-products. I have changed the settlement rule in header of process order, but even then error message coming. any suggestion to avoid error message for other co-products, as we are not receiving them?
Is there way to get target costs in process order cost analysis also?
regs,
ramesh b

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

Product Costing - Process Order Confirmation

Dear Experts,
We are facing a situation with our Product Costing Scenario :
Under SFG Process Order Confirmation, there are Ten Phases to finally confirm the order. First Phase is for Raw Material Issuance. From Second Phase to Ninth Phase are relevant to Activity Types. Tenth Phase which is final phase, in this point Goods Receipt posting is generated.
At first phase, system posts Raw Materials Goods Issue (Movt Type 261) to Process Order:
Entry : RM (Cr), Consumption (Dr).
Client needs the system to post one more entry at the same time by : WIP (Dr), Inv Change (Cr).
Reason:
According to client, they have made consumption entry in finance but what if all raw materials are not consumed as yet and factory comes under fire, then how can they claim insurance on those Raw Materials which are not consumed and are still in the IN PROCESSING Stage?
My Answer was:
- They can find all material costs in Process Order as Debit Item.
- They can also calculate WIP but cannot post WIP in Finance unless the order is settled.
Ultimately, as per my knowledge client cannot check the unprocessed Raw Materials report in FI but they can check in CO. And this is the point of reservation from client.
They need an entry in Finance for WIP to claim insurance in case of fire and therefore they need a posting of WIP entry immediately after Goods Issue of Raw Materials to Order.
Can anyone please guide me further regarding this scenario and if any one can suggest any work around then it would be highly appreciated!
Regards,
Zain Bashir

Hi Zain
This is a very unusual question
Buddy, there is something in accounting called as "Going Concern Concept" which we all were taught in our accounting days.. That means when you do business, do it with a mindset that you are goinig to do it for long / for ever.. Accidents dont happen every day and you cant build a system around such things
Assume there is a fire (God forbid).. After the accident, you wont even know how much was lying there unconsumed which got gutted in the fire..
And insurances not just covers the stock lying consumed, but also stock manufactured and stock in the process of manufacturing (WIP)
And most importantly, dont expect SAP to throw up a figure at the click of a button.. Does your client really think that they will simply submit the report generated from SAP as-is to Insurance people?? SAP is just a technology enablement, which requires human intervention at various places
My opinion - Dont build system for such requirements
Br. Ajay M

Actual Costs and Activity Type - Process Order

Hi,
I'd like to know if there are any tables recorded with activity type and actual costs from process order.
Thanks in advance.
Osmar Tardivo.

Osmar,
Check table COEP

Cost of QC sample on Process Order

When we are posting GR of our Finished or semi finished goods an inspection lot will be created. when we take the Usage Decision on this lot and took samples from the total and post the remaining quantity in unrestricted. the cost will be charged on Process order, which is wrong. we want that the cost should be charged on a QC cost center. when we take Usage Decision on raw and packing material the it always ask for the cost center and the cost is charged on that cost center. in case of finished and semi finished it is not asking. and if we forced it to a cost center it always charged it to a process order.
1. explain me that charging of qc cost or sample cost on process order is standard?
2. what could be the solution of this problem?
3. what could be the work around of this?
Do participate points are guaranteed on value added input.........

Hi Syed ,
In that case what I can think of is introduce a new operation as quality inspection in routing & then implemenent activity as activity cost for the same . Now confirm the operation & there you can capture the time spend in quality & translate that in amount through the activity pricing ......
But in this also it will have effect in the order cost but you can differrentaiate the amount spend in mfg & amount in quality seperately...........
Thanks
Kaushik

Target Cost in process order

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