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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    Edited by: Ramesh Balivada on Jul 28, 2011 6:41 PM

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