TARGET COST PROBLEM
Dear Gurus,
In a process order when i click on cost analysis i do not see target cost.the target cost column is empty .
Actual cost column is ok and there are values it and same is with Target/actual variances column.
What is the reason the target cost column is empty.
Thanks in advance
Regards
Ram
Hi
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.
Plan cost = Plan qty * std cost estimate
Target Cost = Actual qty * std cost estimate
Actual cost = Actual qty * actual costs
Eg:
A production order is planned for producing 10 units of a material
Then plan cost on the order = 10 units * std cost
Target costs are calculated once production is confirmed.
Suppose only 9 units were produced out of 10 planned
Then target cost = 9 units * std. costs
Edited by: Ganesh M on Feb 26, 2010 10:15 AM
Similar Messages
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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
ChristopheHow 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. -
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 -
Total Target Cost in Cost Analysis report
Hi Everybody,
I have come across a problem. In transaction cor3 when I give the process order then in goto>costs>analysis in the given report I wouldnt be able to find the relevent tables for the field 'Total Target Cost' if someone could help me from where I will be able to reterive this field data int he definition they gave me the fomula
Total Target cost = Target Cost debit + target Cost credit.
If someone have any information regarding target Cost Debit and Target Cost Credit please help me out. I will be very thankful to him or her.
Regards,Hi Everybody,
I have come across a problem. In transaction cor3 when I give the process order then in goto>costs>analysis in the given report I wouldnt be able to find the relevent tables for the field 'Total Target Cost' if someone could help me from where I will be able to reterive this field data int he definition they gave me the fomula
Total Target cost = Target Cost debit + target Cost credit.
If someone have any information regarding target Cost Debit and Target Cost Credit please help me out. I will be very thankful to him or her.
Regards, -
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
SupriyaDear,
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 -
Tables to retrieve work center for target costs
Dear all,
currently i developing a report which requires me to display the work centers and their target and actual hours and costs. I tried using production order link tables but they only show work centers that are related to planned costs. May i know which tables can i refer to, in order to retrieve work centers that contribute to the target costs?
Thanks and Regards
YMI have a Report for - 'Equipment BOM' - IB03.
Problem: How to find the 'Maintenance work Center ' For Equipment ? (IE03--> Organization > Responsibility> Main. W.Cntr)
[ Note: For Client --> It's not necessary that each Equipment has Production Order, Few Equipments are taken only for Repair purpose, Equipment is there in table - EQUI,
So - Not possible to fetch from AUFK, HIKO or any other order tables. ]
EQUZ-GEWRK has the main work center. Pass the equipment number and valid-to date to get the main work center.
Cheers
Sujay -
Mixed costing and Target Costs
Hi
I have the following problem.
We are using within Product Costing the Mixed Costing functionality.
One semi-finished product is produced in 2 plants, standard price calculated according to a certain mix.
Everything fine in product costing so far.
When creating a PP order however, the target costs details are not taken over but only as a full amount under semi-finished consumables. Planned costs are taken over in detail.
After completion of the PP order, actual costs are made on materials, labour, etc, where the target costs are fully seen as semi-finished consumables. Therefor the variance analysis between actuals and target costs shows many differences within the Resource Usage Variance, which is not meant.
Can anyone help ?
Kind Regards,
JeVeThanks for your posting Rau,
Yes we did CK11N and CK24.
I think the problem is with the mixed costing.
In the calculation we have two lines per procurement alternative (one per production version), target cost on semi-finished materials cost element. Below that, there is a standard calaculation available, but only the higher level is taken into account when a PP order is created.
Maybe somewhere in the cost estimation is the problem.
In my situation I would like the PP order be targeted at the weighed average cost of the 2 production versions, but on the detailed level. But SAP just shows me the target of the 2 semi-finished products only.
The standard calculation look like
Product A 1000 euro
- 50% product line 1 550 euro
---cost beakdown:
materials 100 euro
labour 300 euro
etc. 150 euro
- 50% product line 2 450 euro
---cost beakdown:
materials 100 euro
labour 250 euro
etc. 100 euro
Target costs on the PP order are one cost element : semi-finished consumables for 1000 euros.
I would like to see target costs on the PP order :
materials 200
labour 550
other 250
Kind regards
JeVe -
Split valuation for Finished Goods - Target cost was not updated
Hi,
We are following split valuation for 'Finished goods'.
Valuation typte 1 is for 'manufacture' and
Valuation type 2 is for 'External procurement'
For production orders with this material, we are not getting target costs. It is showing zero.
We have done release of standard cost estimate before creation of production orders and goods receipt for these orders. But still it is not updating.
Pls guide me.
Regards
MadhuSekhar GuptaHi,
Thanks for your reply.
At the time of variance calculation only the credit part of target cost will update and at the time of goods receipt debit part of the target cost will update.
Our client has done goods receipt but debit part of the target cost was not updated. and the order status is DLV.
I simulated the scenario in QAS by creating new finished goods materials (Industry-Construction) one is with split valuation and another is without split valuation, then the debit part of target cost was updated at the time of goods receipt and credit part was updated at the time of variance calculation for both the materials. So this problem was not arised because of split valuation.
Was this problem arising because of the material master data, because for one material it is updating and for another it is not for the same configuration?
Regards
MadhuSekhar Gupta
Edited by: gms gupta on Oct 22, 2011 3:39 PM
Edited by: gms gupta on Oct 22, 2011 3:41 PM -
Target costs on Product cost collectors
Hi,
we have a problem with target costs on product cost collector.
For the product cost collectors which are existing from long time, it is not updating target costs as soon as backflushing(Goods issue and goods receipt at same time) is done.
For the product cost collectors which are created newly it is updating target costs as soon as backflushing is done.
so we would like to know exactly at what point of time target costs will be updated on product cost collector.
Thanks,
Santosh Malisetti.Hi Rich,
After researching little bit we found that its a standard functionality for product collector's not to update target costs until we do the variance caluculation. But there is one special case. When a new product collector is created it will update the target costs when backflushing(GI and GR ) is done, but this will happen during first month only. once this product cost collector has participated in variance calculation process, it will not update the target costs when backflushing is done,
until it participates in variance calculation again.
Thanks,
Santosh -
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 advanceThanks 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 -
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.
ShiraziDear,
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 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 -
Can you help me with a Cost problem in an Order?
Hello SAP experts, i have a question regarding orders and their costs if i go inside an order and i go to the menu then ->Goto->Costs->Analisys-> and then choose the layout ->Target/Actual Comparison, in this layout there is a column that says
Total Target Cost and Total actual cost, i would like to know is what data does the system use to calcule those values, i know that one value is the amount of material that was charged to the order, but i would like to know from where does it take the other value the cost value so it can reach that number, thank you in advanceHi,
In simple words:
Target cost = Plan price * Actual qty
Actual cost = Actual price * Actual qty
Now where does the price come from... it depends on the valuation variant which is used for the order type. Normally it is the standard price from the material master which you can see in Accounting - 1 view or Costing - 2 view.
The actual quantity is the qty of a component which has been issued to that order.
So to get a clear picture, take a material which you see in the cost analysis view of that order & open the material master. Check the price for that part, multiply it with the qty issued & your query should be clarified.
Revert if you face any issues.
Regards,
Vivek -
Engineer to Order Scenario-Target Costs and Stock Valuation
I have got a query pertaining to Engineer to Order Scenario. A production order has been created with WBS element as the account assignment .Its a valuated project stock scenario, with configurable material. As per SAP standard behaviour and my limited knowledge, the Goods Receipt for FERT/HALB happens according to either of the four strategies:
Standard Price ( if there exists one)
Customer Exit COPCP002
Sales Order Cost Estimate
Preliminary Order Cost Estimate for prod order
However ,I have come across a case where although a preliminary order cost estimate exists for the production order, the system is not able to determine target costs. As a result the entire variance is posted as remaining variance at the time doing a variance calculation on the production order. Moreover at the time of Goods Receipt for FERT material,the system passses an entry Price diff A/c -Debit to Cost of Production, instead of debiting Inventory and crediting cost of production(Price Control is S, no standard price exists for the material)
Thus my query is :
1) In case of Engineer to Order Valuated Stock Scenario where prod order is created with reference to WBS element, how is the standard price (or target costs for version 0) determined
2) Under what situation at the time of goods receipt ,will an entry " Price diff A/c Dr & cost of production-Credit will be posted, instead of Inventory A/c being debited?
Awaiting a reply
-Regards
Amit KulkarniHi Amit
the easy answer first: The standard price is just taken out of the material segment without WBS assignment. That means if you maintain a standard price in the accounting view of the material master for the material number + plant that will be the fallback to be used. That will at least reuslt in a inventory posting, instead of pure price differences (against a price of zero)
Why your production order cost estimate could not be derived I cannot say. But he first startegy will be to search for the cost estimate to the WBS. Is there not something in the project system to perform a project costing and save it? in that case that will be searched and used for the order target cost and inventory posting.
best regards,
Udo -
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 PMHi 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
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