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

Question

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.

Answer 1

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