Target costs

Hi,
I need to use for target cost calculation, a target version with a costing variant that not update the standard costs.
If I use this costing variant, for to use target cost, I have to mark and release the cost estimate or the cost estimate can be only calculated?
Thanks
Regards

Hi
A cost estimate which does not update the Std cost can not be marked and released.... It would be enough if you just save the cost estimate or Store it in a Planned Price field using "Update Other prices" option in Ck24
BR, Ajay M

Similar Messages

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
Christophe

How 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.

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 advance

Thanks 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.
Shirazi

Dear,
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 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

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

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 Kulkarni

Hi 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 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

KKS1 Only remaining var. in version 0 - no target cost Message no. KV151

Hi,
I am trying to variance calculation using T-code KKS1 but i am facing error as below,
Only remaining var. in version 0 - no target costs for 000001000010
Message no. KV151
Diagnosis
For the calculation of variances with 000001000010 , 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 guide me or missing any config
Thanks
Shital

Hi Shital
there are many posts available in the forum already on this topic... I would recommend to search the forum before posting any question, thats the rule of the forum
You are facing this error for one or more of the following reasons
1. Your standard cost estimate is not released. This must be released before GR from the production order
2. If your contr area currency is diff than comp code currency, then your cost estimate must also be updated in contr area currency.. You do this in costing variant (OKKN)
3. GR might not have been done in the month for which you are calculating variance... i.e. This production order was created, say, in July end but actual processing and GR done in August.. So when you calculate variance for July, this error appears. In this case, you can ignore this error
Regards
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...

Percentage based overhead based on target cost of actual production

Hello,
I'm trying to calculate percentage overhead (overhead as a % of total cost of production) using the usual overhead group, overhead key ,costing sheet, etc.
Also put the overhead group in the material master.
Although I am getting it correctly as part of product cost planning, when it comes to calculating this overhead on a production order, it does it based on 'total actual costs' posted to the order. I want it to calculate the % overhead based on the standard cost of actual production (the target cost).
I would really appreciate some help on this.

Hi
If that's the requirement, you can achieve through template allocation. Refer the doc contributed by arturo senosain
I use a workaround for such cases. Add an activity type in routing with activity quantity same as base qty of routing.. Say, 1 PC
Maintain the activity price as .15. And you are done
Br. Ajay M

Tables for Target costs

Hello All,
Can anyone please tell me the tables for target costs in controlling.
Thank you
Nivas

No answer received

Total Target Costs not updated in Process Order

Hi All,
I have a scenario in a Process Order,
The Process order is Released, Goods Issued and GR done. But the when i go and check the Cost Analysis i did not see anything in the Total Target Costs and Total Target Qty coloumns agianst all the cost elements. It show as zero for all.
It looks very strange. There is variance in the component issues and GR as well. I simulated for the same material with a new Process order and found the vales get populated automatically on GI and GR's with variation against requirement quantity.
Could any one explain me why it is so ..? or is my understanding is wrong.....?
Thanks for your time and patience.
Regards,
Srinath V

Srinath Venkatr,
I think you are missing PP CO integration configuration during master data creation. There might be information massage to you during process order creation saying , 'Logs during Cost calculation", you are skipping the same and creating process order withought resolving the same.
Check whether you followed all the steps for product costing.
Material master,
BOM,
OPKP:-Controlling area-activate components and Controll indicators
:- Assignment of co codes
KS01: Cost center
KA01/KA06:- Primary/ Secondary Cost elements
KL01:-Activity Types
KP26:- Activity Price Planning
Then Work center/Resource- assign these cost center and activities with costing formulas.
Then Routing/Recepi-
After master data, demand management,MRP- process order. while creating process order check cost calculation errors.
Hopes that will clear your dought
Tara

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.

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

Target costs

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