Target & Planned Cost

Hi Experts,
We are using transaction-CK51N (MTO Scenario) to carry out sale order costing.
My simple query is........
In CO03 which coulmn ( Total Target Costs OR Total Plan Costs) get updated in line to CK51N (once released and saved).

Hi,
CO03, GOTO-COST-Analysis/Itemization/Cost comp structure
Tara

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Target Cost (Planned Cost)

Hi All..
Preliminary Costing of Product Cost Collector is created. After backflush activity, the PCC display is not showing TARGET COSTS in Costs detail screen.
wat could be the cause for this..?? how to rectify it..??
As Target Costs are all ZERO ( for materils and activity) Target / Actual variance shows 100% variance..
Please guide me to solve dis..
With regards,
LN

Hi LN
To get the target cost. You should have runned the cost estimates for a material through CK 11N or For all material in CK 40 N.
Then only the target cost will appear. Otherwise planned cost only will appear.
Regards
J . Saravan

Target cost, planned cost, actual cost difference

Hi!
As per my understanding , the target cost, planned cost, actual will be calculated like blow:
Actual cost = Actual quanity * Actual price ( standard price or moving average price) existed at the time of goods movement.
Planned cost = Planned quantity * Planned price ( standard price or moving average price) existed at the time of production order release based on valuation variant strategy.
Target cost = Planned Quantity * Actual price ( standard price or moving average price) when calculating variances.
whether above formulas are correct?
I have one scenario, where in process order, I am not seeing Planned quanity for compoenent/raw material, but target quanity is existed. How it is possible. When I have checked the BOM in process order, the BOM does not contain the componenet.
regs,
ramesh

Hi,
Target Cost = Costs as per the standard cost estimate * Actual Qty delivered.
For e.g. Std cost for one unit of material-x is as follows.
RM 1 - 10kg * 10 /- = 100
Activity 1 - 5 Hr * 50 /- = 250
If the actual delivery from the production is 2 units, then target cost will update as
Under Goods Issue, RM 1 - (10kg*2units) * 10 /- = 200
Under Confirmations, Activity 1 - (5 Hr*2units) * 50/- = 500
Total = 200+500 = 700
Target cost for goods issue/confirmation of activities will update only when the Goods receipt has been done but not at the time of goods issue or Confirmation of activities.
Target cost for Goods Receipt will update only when the variance has been calculated for the order.
Regards
MadhuSekhar Gupta G

Target cost and planned cost

What is the difference between Target cost and planned cost in discrete production orders? Please advise.

Dear
Planned costs will be updated after creation of production order.
Target costs will be updated after delivery of the production order.
Plan cost = Plan qty X Planned price (std. cost estimate)
Actual cost = Actual qty X Actual price
Target Cost = Actual qty X Planned price (std. cost estimate)

Differentiate Planned Cost, Actual Cost & Targeted Cost

Hello Friends,
I am searching for job and went for interview in Wipro. They asked me the difference between Planned, Actual and target cost..... I tried to search on Google and SAP Blog's but couldn't find the appropriate or understandable answer yet, So it would be great if you you can guide me a bit on this......
Thank You,

Hi,
Any PP related queries you can search in Forum ERP: Manufacturing.
Pls refer the link.
planned cost and actual cost
Thanks,
nandha

Planned cost/target cost/control cost

Dear Expets,
Ps guide me on the below.
Difference between - planned cost/target cost/control cost and Plan qty/target qty/control qty in MTS or MTO.
your response will be highly appreciated.
regards
Raman Rana
Moderator: Please, avoid asking basic questions

Dear Raman,
planned costs:
The costs anticipated for a particular undertaking (such as an order).
Target costs:
The costs expected to be incurred when a specific quantity is produced.
In Cost Object Controlling, the target costs are calculated on the basis of the planned values of a service unit (such as the planned cost of a production order) and the control quantities (such as the yield delivered to stock).
Target costs can be used for purposes such as:
u2022     To determine variances
u2022     To valuate work in process
u2022     To valuate unplanned scrap
Control costs:
The costs that are compared against the target costs when the variances are calculated.
In Overhead Cost Controlling (CO-OM), the control costs are always the actual costs.
In Cost Object Controlling (CO-PC-OBJ), the control costs are either the actual costs less the work in process and scrap or the cost calculated in the preliminary cost estimate for the order, depending on the target cost version.
br, Guido

Diff between Planned Cost - Target Cost

Hi all of you,
Could you please explain me the difference between Planned Cost and Target Cost. Why do we go for the settlement of Variance (Diff between Actual cost and Target Cost).
Please give me your valuable suggestions regarding.
Thanks & Regards
Ramki

HI,
Let us say, for the product X, my planned cost through standard cost estimate is 100 Rs. This has been found through executing the t code Ck40n or Ck11n.
One more assumption is, We have created production order with quanity 10. Did Goods receipt 10 nos.
Now ,,
Planned cost is = Std cost estimate cost x Qunaity=100 x 10= 1000
Target cost: This is being used for comparison purpose. You can have many versions of cost using target cost. let us say, I want to have target version price should be equal to priliminary cost estimate instead of std cost estimate. This can be achived through customizing in t code OKV6. And production order will pick up the target cost value as per the target cost version.
This target cost field in Prod. order gets updated once you run variance calculation.
Actual cost:
Standard cost * actual qty= 100*10=1000
Settlement:
While doing GR/GI to order, the cost is captured under the production order. if there is a difference between actual and plan, that should be posted to Price diffference account.That activiry is being done at the time of settlement.
vijay

Difference between the planned cost and the target cost

Hello guys,
I am really confused between the planned cost and the target cost.As Per the sap help target cost is cost required to produce certain quantity of material.And planned cost even carry the same definition.
So is there any difference between these two cost.Are they same?

Jitendra,
Genarally in CO we will define Target cost is getting calculated in the Production order based on the "Standard Cost Estimate" after GR. Planned costs are calculated based on the current costs.
Example:
Assumption: Assembly Material A with Standard Price, Component B and Component C is maintained with Moving average
Material A Cost 1EA = (component B = $10 + Component cost C = $20+ Activity Price $1) = $31, this is the standard cost estimate for the material.
Now I create a production order on 15th of the month, and the Moving average price for component is now $20 due to subsequent GR with higher price. Now the planned cost for the order would be (20201)=$41, whereas the Target cost would be still $31.
Hope I was able to clarify,
Regards,
Prasobh

Target/Actual/Planned Costs inProduction Order

All,
Can any one explain with example how planned, target,actual cost are calculated for a production order. and also when exactly these are recorded.
Thanks in advance
Sivaram

Hi Sivaram
Target Costs is Std costs for actual goods delivered
Actual Costs are for actual cost of material and activities for actual delivered stock
Here, delivered stock is same in both only the costs consdiered are diff
The diff between target and actual costs is posted to variance.
Goods movement is done with actual price of raw material generally. If u hv price contrl S for RM then it is at standards and all variances are only related to quantity.
Actual costs are compared with standard costs of goods delivered to stock and varainces are calculated for the production order
Regarding scrap costs - it should be separate line item. It depends on many other settings in BOM, Routing, MM and Cost comp structure. Depending on where the scrap is defined calculations are done
If u have defined planned scrap, and is part of cost comp structure, u can get plan vs actual scrap costs
You can also have scrap as not part of cost comp structure and record only actual scrap costs.
Please assign points if the above clarifies further as a way to say thanks

Diff erence between target cost and plan cost

what is the diffenece between target cost and plan cost , in product cost controlling?

Hi
Plan cost is some thing anticipated cost i.e cost estimates here we can say the standard cost.
Target cost is the cost of (yeild) of the production at plan cost.
Ex: Standard cost for X product is 10
      production lot size is 100
      production yeild is 90
then your plan cost will be = 1000
and target cost will be       =   900
and the variance of 100 of 10 units will be as variance.
Regards
Laxmiprasad

How I can map "Sales Target Planning" in SAP?

Hi All,
I am working in Sales & Marketing in a Logistic Service Provider Company.
Our Product is Container (in which RMG & other commodities are transported
via ship from/to all over the world). Our Sales Target is planned in yearly
basis on Quantity of Containers, Number of Buyers, Different Corridors,
Different Commodities etc etc. How we can map our Sales Target Planning in SAP?
Regards,
Syed Waseem Reza

Sir,
Can you please let us know the high level process flow you have already mapped? I am facing the same problem.... I am here delivering my existing process flow.
We didnu2019t go for any other special module of SAP
The General modules of SAP including
u2022     SD(Sales & Distribution),
u2022     MM(Material Management),
u2022     WM(Warehouse Management),
u2022     LE (Logistic Execution),
u2022     FI(Finance), CO(Controlling),
u2022     FA(Fixed Asset)
Basic Process Mapping:
u2022     SO(Sales Order) may create directly or against Qut(Quotation)
u2022     All SO line item will create the PR (Purchase Requisition)
u2022     Warehouse does the GR (Goods Receive) against PR indirectly SO.
u2022     Empty and Laden Container enters to Warehouse as a material received.
u2022     TO (Transfer Order) of Goods to the Bin Location
u2022     Creates the Outbound Delivery against GR.
u2022     Picking of Goods from WH Bin to Deliver Place
u2022     Packing of Goods to the Container as per Shipment.
u2022     Outgoing Invoice for collection against Outbound Delivery
u2022     Incoming Invoice for payment against Shipment Cost.
Management wants to give one sales target such as...
Year -SO-----Material Group---Material Group
--(20' Container)-----(40' Container)
2009-----10,0004,000--
2,000
and in the end of the year, Management wants to see the see the following report.
Year      Targeted      Achieved     Target(20') Achieved(20') Target(40') Achieved(40')
--SOSO-----
2009-----10,0008,0004,0002,0002,000--
1,500
For this I have to store my sales target in any of SAP document, because i have already all the Achieved information in my existing system, because material groups are keeping in the Shipment/Packing phase of the process, So i can easily make the report, but i cant get the Target as I don't have any place to store the same.
Can anybody help me to proceed?
Rgds
Farhad
Edited by: Farhad Islam on Jan 31, 2009 6:49 AM
Edited by: Farhad Islam on Jan 31, 2009 6:49 AM

Actual Costs , Planned Costs and Variance

Hi,
I know that there is a standard function module that gives the actual costs , tha target costs and variance, K_KKB_KKBCS_ORDER_REPORT. But is there any Funcion Module for calculating the Actual and planned costs and variance? or could the same FM be used for the purpose?

OK

Planned Cost Table

Product Costing - Planned Cost & Target Cost.
Can you pls let me know the table in which the Planned cost & Target Cost appearing in CO03 --> Go to --> Cost --> Analysis gets stored especially when Production order created against WBS?

Look at the following tables
AUFK
COBRB
COSP
COSS
COSL
COSB
when you goto CO03 --> Go to --> Cost --> Analysis, SAP transfers the control to the transaction code KKBC_ORD , so if you're writing an custom ABAP program I suggest you study the code of that program and use the function modules used in it. Or else you can directly use the SUBMIT command and get the values of from the memory ( you need to search for this in ABAP forums if you want go this way)

Planned cost in REM

Hii experts,
Can we have planned cost in REM? If yes, how?
regards
kapil

Dear Kapil,
For your Understanding
1.Target costs are the planned costs adjusted to the actual
operating rate.Target costs can be used for purposes such as:
To determine variances
To valuate work in process
To valuate unplanned scrap
2.The Target cost will be your Planned Cost which you have
used during Cost Rollup---this generally given for Raw Materials.
3.The actual Cost will be the price of the consumption that has
happened for 261 moevment materials.
4.Moving average Price of your Raw materials gets varied as
per the GR & its value,So whenever production confirmation is
done for the HALB or FERT materials,you can see the actual
cost getting varied for your RAW materials.
5.So Variance will be of +ve value if Actual Costs is greater
than Target Costs & variance will be - ve Value if Target Costs
is greated than Actual Costs.
6.So during Period end closing as per the Business
requirements varinace is calculated,then settled against some
Cost Objects.
7.For the Items which were not present in the BOM of a HALB
or FERT item during Cost rollup and later on added,for these
items you can see the Target cost will be Zero and only actual
costs field gets updated.
I hope this will be sufficient to get a better understanding.
Revert back in case of any queries.
Regards
Mangalraj

Report for extracting the actual and planned cost from service orders

HI all
we are creating a report in BI for Module - Customer service . LIke , the report is all about how many complaints created in the system and how many completed technically and what is the cost involved for each complaint .
Like we want the comparision between the planned cost and the actual cost .
Now to give the logic to the BI Team for planned cost and actual cost , please suggest the flow of logic or table flow to arrive the planned and actual cost
thanks in advance

Hi Marthand,
I am not sure which datasource your are using. In this case, you can use the 0VALUETYPE to differencitae between th eplan and actuals. Normally Plan which is budget will have value 050 and for actuals will have 010. For costs, you will have one key figure and at the reporting level, you will have the costs restricted by the value type for plan and actual to make comparisons.
Hope this helps.
Regards,
Srinivas

Target & Planned Cost

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