Target Cost of KKS2

Dear SAP Guru,
I want to know the calculation procedure of "Total Target Cost" for Labor in KKS2.
In the KKS2 "Total Target Cost" of Labor is showing 72.91/=. But I cannot understand how it is come from.
Please advice me.
Best Regards,
Shoyeb

Hi,
The planned costs in target cost version 0 are taken from the material cost estimate.
The planned costs itself are not standardized or changed in the variance calculation but shown as they were updated.
In order to compare planned costs with actual costs planned costs are standardized to the output quantity and updated as target costs.
For variance analysis only the target costs shall be compared with the actual costs but not the planned costs.
regards
Waman

Similar Messages

KKS2 ran for future periods; Target costs double the actual costs

Hi
Variance calculation was accidentally run for period 011/2012 and it affected several orders in that the target costs are showing double the actual costs (period 01 + period 11) of year 2012.
Is there some report in SAp that would give us a list of orders for which KKS2 (variance calc) was run for period 11 2012.
Best wishes
Raj.

hi
Thanks for your responses. But nothing has answered my question
Is there a report in SAp that could give me a list of all orders for which variance calculation was run for period 11 2012?
I used several reports including KOB3 and s_alr_87013140 but nothing gives me that list.
Thanks in advance for your replies.

Only remaining var. in version 0 - no target costs

Hi!
We are doing settlement for process orders, most of the process orders are created and goods receipts happened before standard cost estimation is released.
So during varaince calculation (KKS2/KKS1) we are getting error message: Only remaining var. in version 0 - no target costs
as we cannot cancel the goods receipts for process orders, we are doing settlements with remaining variance only.
The variance will directly go to CO-PA, as we have activated the same.
the example of one process order:
Total goods receipt is : 44175.58     co-product 1
                                   3757.38     co-product 2
total receipt              47932.96
Materials Issued(GI)     20025.98
Activity Cost          11985.3
_Total Cost     _     32011.28
the variance is:            13764.86             co-product 1 ( as per settlement rule 95%)
                                  2156.82              co-product 2 ( as per settlement rule 5%)
                                  15921.68
Once we have done the settlement there are 4 accounting documents posted for variance:
1.     Cost of production a/c DR 3757.38
                    TO Variance A/C Cr 3757.38 ( value flowing to COPA)
2.     Cost of production a/c DR 44175.58
                    TO Variance A/C Cr 44175.58 ( value flowing to COPA)
3.     Cost of production a/c CR 1600.56
                   TO Variance A/C Dr 1600.56 ( value is not flowing to COPA)
4.     Cost of production a/c CR 30410.72
                    TO Variance A/C Dr 30410.72 ( value is not flowing to COPA)
So the net effect of variance account posting in FI is OK.
But where as in CO-PA, variance is different, because only first two values ( total goods receipt value as variance amount) as above are passing to COPA.
Now how can we rectify the variance values in CO-PA?
We are using PA transfer structure A1 with the following assignments:
10     Input price variance
20     Mat Input quantity variance
30     Mat Resource-usage variance
40     Remaining input variance
50     Mixed-price variance
60     Output price variance
70     Lot size-/fixed-cost variance
80     Remaining variance
90     Scrap
regs,
ramesh
Edited by: Ramesh Balivada on Jul 28, 2011 6:41 PM

Hi ramesh
You need to live with this as you cant reverse the GR
To check this henceforth, use badi Workorder_update and write abap code for the Method AT SAVE or AT RELEASE... Check if field MBEW-LPLPR is INITIAL
br, Ajay M

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...

Target costs not displayed in process order

Hi,
We have set up a small PI scenario. The issue we are facing is that the target costs are not displayed in the order. Actual costs appear after confirmation, but target costs appear as zero.
We have maintianed cost relevancy in work centers, defined valid activity types, maintianed price in material master for all components and also run the standard cost estimate and released it.
Please let us know what we are missing and why this error could be happening?
Thanks in advance,
Ashok

Target costs are populated when you do the goods receipt. System will search for the released standard cost estimate and then apply that for each material component. If these 2 conditions are passed, then you will get target cost in order,
You need to define the following,
1. Variance Key - Transaction "OKV1"
2. Assign that to Plant using "OKVW"
3. Define Variance Variant using "OKVG"
4. Define Valuation variant for WIP/Scrap calculation using "SPRO"
5. Define target cost version by assiging sl no 3 & 4 and also how the cost calculation should be used.
Once this activities are completed, execute production/process order and then after goods movement and some confirmations process Variance using "KKS2" as a period end activities.
Edited by: sarin toms on Dec 2, 2008 2:26 PM

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

Production order Target cost Zero - Varience calculation error KV151

Hi Experts,
I am having an issue on KKS2 variance calculation, system throwing error KV151 Target cost is 'Zero'
All pre-requisites are ok including BOM, Rates, Routings etc..
Process:
Production order with FERT - valuated material,
All BOM components in production order are Non valuated stock items, Non-stock items
Note: Cost Estimat e is for Labor and Overhead only.
After production order confirmation CO11N, production order Cost analysis displays - Target value ("Zero") and actual value.
Due to above reason in KSS2 we are unable to calculate variance, system displayed error KV151.
I cannot settle the production order, guide if I am missing some thing in config. ?
I appreciate you quick response.
Thanks,
RK

Thanks for your reply Swapvik & Takashi, I have no issues on configuration side very thing looks good.
Cost estimate - Good
Variance key - Good
Production order - FERT (Valuated) - good
BOM components - UNBW, NLGS only - Good
Labor rates - good
Periods - good
Production order confirmation - Good
Actual cost - Good
My Issue is Target cost is zero on cost analysis in CO03 but if I can see target cost in KKBC_ORD report.
I am unable to calculate variance and settlement.
I appreciate your response.
Thanks,
Raj

Target Cost missing in some production orders

Hi everyone
I am observing target cost for few of my production orders. I have observed target cost is misisng in some production orders even they have status techo and dlv while some have staus rel and dlv and i can target cost for them. When i try to run KKS2 for the production order which is not showing target cost it comes up with error KV151 which says 'The quantities on which planned cost were based are zero in the time period concerned. This may be caused by the fact that no goods receipt for a cost object has been entered. This result in target cost to zero.' but we still had valid cost estimate at that for those production orders. Any help would be really apprecited
Kind Regards

Any help plz

Target costs is showing as ZERO for one material in KKBC_ORD

Hi,
When i execute KKBC_ORD,It is showing the Total Target Costs as ZERO for one material.Cost estimate was already executed for that material.I couldnot find out the problem for this issue.
Kindly help me to find why it is giving the ZERO value for this Total Target Costs in KKBC_ORD transaction.
It would be a great help if any one helps me...
Thanks
Supriya

Dear,
Have you done the GR final DEV for 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. I think you are checking in CO03GotoCost--Analyasis.
Go to t.code OKEV.Select Controlling Area XXX and create Plan / Target version
Go to transaction OKV6 these settings control what values are used to update the target costs.
Target Costs=Actual Quantitiy X the Standard Cost Estimate Price..
Regards,
R.Brahmankar

Only Remaining var. in version 0 - no target cost for order

Hi,
I am getting the error message "Only remaining var. in version 0 - no target costs for 000060003328" while performing the Variance Calculation in KKS2 transaaction.
The order is having status DLV and TECO.
Kidny give your suggestions
Thanks and regards
Murugesan

Got answer from Financials forum

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 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

No Target Costs, so No Variances calculated

We have an order type (PCOL) for Collective Orders. If we create 1 that is just a single order, it calculates target costs, and resulting variances fine (same as our std order type PP01). However, if we create a structured set of PCOL orders (Lead order with multiple sub orders), none of these calculate variances (PA doc), and we get message KV017 when we run variances on them.
Looking into it further, I can see all the target costs on these orders are nil, despite the fact the all the costing data on the control tab is the same as the songle PCOL order.
We does this structured set of orders not calculate any Target costs, and consequently no PA variances?
Any advice greatly appreciated
Thanks
Graham

Hello again
The full errorr text is during varinace calculation (trans. cosd kks2) is:
Only remaining var. in version 0 - no target costs for 000002000063
Message no. KV151
Diagnosis
For the calculation of variances with 000002000063 , 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.
there is a released standard cost fir the material
i checek that an itemization is saved for the costing varinat (planned costs for pp order)
I would be Grateful to get some help
Best regards
Michal

Target cost /actual cost /variance issue

hi
target cost as per cost component structure is appearing after production order is saved
but after production order confirmation T Code CO15 actual cost is appear but target cost disappeared and because of this variance showing full value of actual cost
why this is happening
what is the reason
please suggest to resolve the issue
Regards
Dharmendrar

Dear,
Once you do the GR of that Prod Order and the status will DLV then the Target will show. Run KKS2 and then check your result.In production order or KKBC_HOE
Regards,
R.Brahmankar

Target Costs not Displaying in Production Order Cost Analysis

Hi Guys,
I am not able to see the target costs in a production order. It is showing the actual costs properly. I don't know how to validate the numbers and where am I missing. Please help.
Thanks and Regards
Madhu Vutukuri

Target costs are populated when you do the goods receipt. System will search for the released standard cost estimate and then apply that for each material component. If these 2 conditions are passed, then you will get target cost in order,
You need to define the following,
1. Variance Key - Transaction "OKV1"
2. Assign that to Plant using "OKVW"
3. Define Variance Variant using "OKVG"
4. Define Valuation variant for WIP/Scrap calculation using "SPRO"
5. Define target cost version by assiging sl no 3 & 4 and also how the cost calculation should be used.
Once this activities are completed, execute production/process order and then after goods movement and some confirmations process Variance using "KKS2" as a period end activities.
Edited by: sarin toms on Dec 2, 2008 2:26 PM

Target Cost of KKS2

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