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

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KKBC_KUN - For Sales Order or
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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.
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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"
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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 and actual cost not picking in production order

Hello,
The target cost and actual cost is not updating in production order when I display it in CO03 in cost analysis.
Even though we have maintained planned price in KP26.
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Best Regards,
Tapan

Hi Tapan
For Target cost
1. Your std cost must be released before Goods Receipt
2. There must be goods receipt posted on the prod order
3. You must calculate variances in KKS1/2
For Actual Cost
1. Post Goods receipt and Goods issues
2. See if any mat movements are pending in COGI
3. Ensure that operation is confirmed in PP and no entry is lying in COFC
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Hi everybody..thanx for the replies..i want to clear the following things to u,
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Componant cost not picking in production order

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Componanat cost is not picking in production order, when i m creating plan order to production order in make to order scenario.
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Hi,
Thanks for sharing thoughts.
Issue resolved.
(SPRO-Sales and Distribution-Basic Functions-Account Assignment/Costing-Maintain Requirements Classes For Costing/Account Assignment-execute-for req class 040-Account assignment catagory -M & Valuation-M)
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Edited by: tara bhapkar on Jul 7, 2011 2:52 PM

Target cost Not updated in Production order

Dear All,
when I save & release the production order system is not showing tgt cost. But once GR thas been done it is showing target Cost.
How can system should will show target cost without doing GR.

Dear Sainath,
It is the standard behaviour of SAP,that only making a GR for a production order you will be able to see the target cost in CO03 -
-->Goto >Cost-> Analysis.
IF the order is only created or released you will be able to see the data under cost --->itemization or else cost component
structure.
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data's visible before this.
Correct me if I'm wrong.
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Additive cost not seen in production order and while settling hits PRD

I am using additive costs for my product costing via CK74n.
Cost estimate looks good since I have the valuation variants setup to include additive costs.
But when I see the production order that is being created, all others costs are being considered except additive costs. They are recognized but not as a line item instead as a variance. When I settle the order the costs actually hit price difference account and not even the GL account that I had assigned for the additive cost. SAP did not consider the cost as variance even if it was showing up as variance initially. This as I understood is partly because of the settlement rule that I have in place which tells SAP to go and settle on the material (which is standard SAP to do since I want all the costs from the production order to settle on the eventual material going into stock) so SAP went on to settling on the material. Since the material is set as standard price the variance is being booked as a price difference entry.
Ideally I would have expected the additive cost getting debited to the order and credited to the gl account that I assigned for the additive cost. The eventual cost (incl. additive cost) should hit the inventory.
Am I missing a step?

Hi Sapluver,
Appreciate your prompt response..Please see my response in italics
Few queries related to your post.
1. So your standard cost got two part, one with quantity structure ( materials, labor, OSC etc) which the system cost automatically and one manual part, which is your additive cost. While costing system picks up this manual part from CK74N.
I hope this part you got correct. Yes, the cost estimate is reading from both the qty structure and the additive costs and the cost roll-up is coming up correctly
2. Now in actual cost controlling, i think System is not sure how to valuate your additive cost actual part.I agree, the additive cost does appear in the cost analysis section of the production order but does not show up as a line item initially. Instead it comes up as a difference item right in the bottom of the screen after totals have been displayed without any line item reference. As if the system is not sure how to display the line item. Once I have done the material issuance confirmation to the order, the additive cost got picked up correctly as I have set it up in the cost component structure as material overhead but again shows up only as variance
Which method you used to debit your production order with additive cost, is it a normal journal entry or through some automatic posting through routing ( example OSC through Purchase order/Good Receipt).I probably need to understand your point more clearly? I am not manually debiting the production order at all for the additive cost. I was expecting SAP to debit the order the same way it does for overheads. Overheads too initially show up as variance but then when we run the overhead calculation KGI2 the overheads costs get debited to the production order. Was expecting similar behavior for additive costs. I am receiving the finished product from the production order into stock via MIGO goods receipt movement type 101. I was expecting the debit to happen perhaps at the time of settlement via CO88 but here the system posted it to the price difference account via account key PRD. This I understand the system did because the settlement rule is set to post all the costs on the material and the material has the valuation control as standard price; so the system is seeing the additive cost as a price difference hence posting it to the price difference account.
System is unaware of the additive cost from actual cost point of view, there is no specification to additive cost from costing variant for actual cost. So you have to debit the order with the additive cost part.So do I manually debit the order with the additive cost? What about the price difference additive cost sitting on the order? Would appreciate if you can tell me the process steps for posting this correctly
regards
Sapluver

Overhead cost not coming in production order

Hello Friends,
I have assigned overhead group to material master in costing 1 view.Overhead group is assigned to Overhead key and valuation area of mine (plant).Even i have defined overhead rates i.e, percentage overhead for my company code.Then i calculated the overhead using KGI2.It shows no error in log and shows 1 overhead calculated.But when i go inside the production order, it doesn't show the overhead cost in actual cost, why?
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Hi,
Your overhead rate has to be assigned to your costing sheet.
Follow the steps below...
1) For your order type check the OTDP (OPL8 t code)
Check your applicable costing variant in "cost accounting tab)
2) In OPL1 t code check the valuation variants (planned and actual) for your costing variant
3) In Okk4 check the costing sheets assigned to your valuation varaint.
4) now check if the overhead key is assigned to your costing sheet in IMG--> controlling
>Product cost controlling>Cost Object Controlling-->Product Cost by Order
>Overhead>Define Costing Sheets. If it is not assigned, then assign it
5) Also check if your overhead key is assigned to your overhead rate. Follow the same path as above. under 'Define Costing Sheets' Costing Sheet: Components-->Define Percentage Overhead Rates.
Now check your scenario again.
Hope this helps.
Regards,
Ashok

MTO & Production Order Cost estimate

Hello
We have MTO with Production Order cost estimate for valuating invendtory.But the value of GR is not matching with Production Order cost estmate though strategy is "2"-with which its valuated.The estimate does not have any majaor itemisation except Activity cost-which is unchanged.How do i find the the value with which GR is done.AN order cost estimate no is saved in EBEW.WIll this give me trail of the itemisation with values & how can i get the trail.

Hi SR,
- Value GR is not match with the order, here are my basic question
> Are you using material in the standard price or moving?
> Are man days estimated is same with the actual GI?
If there is different than cost estimation would not be the same with the actual GR.
- Find the the value with which GR is done, I'm not sure about the question here & correct me if I'm wrong.
If you want to search whether GR is done or not you should check by the Order in module PP
- How can i get the trail, if you want to get the trail over cost and until sales order in placed, I think it has to be a custom program
Hope helps

Target cost not appearing in process order

Hi All,
Please let me know the reasons for target cost not appearing in process order.
Thanks,
SAP PQ

Two more scenarios:
1. You have co-product.
2. You reverse the variance calculation.
It will show the target cost only after you run variance calculation.

GR for production order post to cost center and not to the production order

Hi all,
when we post the goods receipt for the finished product against the production order (mov. type 101), the order is not credited with the corresponding stock value. Instead of this, the value accounts to a cost center.
We specified this cost center in OKB9 (Default account assignment), because if not, we get an error when posting the goods receipt cause of lacking accounting object.
I can't see why the system does not credit the production order?
Any ideas?
Thanks for your time
Daniel

Hi Daniel,
This is the first time i am coming across an issue like this.
neverthless from a logical front,
1. Remove Cost center as a valid receiver in Settlement Profile.
2. Your OKB9 setting are pretty much good. No need to worry about it. Becasue, OKB9 only will work if the system doesn't identify any other cost object. In this case Production Order is an automatic cost object which system should have taken.
3. Check the Settlement rule when you have created Production Order. It should have been MAT.
4. I hope you are creating Production Order with Material (using CO01 and not CO07)
5. Make sure in OPL8, the default rule in controlling tab is PP1.
Once all these are fine, i do not see any reason why you will get your probelm.
Please check and revert back to me if the problem still persists.
Best Regards
Surya

Target Costs not Displaying in Production Order Cost Analysis

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