Total target cost

Hi...,
I want to know the formula or table-field for"Total target cost" for activity type for production order.
For exm. - Tcode CO02 - goto - cost -analysis ,.. here system gives activity wise production cost.That target cost I want to give in zreport.
Thanks in advance.
hemant

Target cost is calculated field during runtime as i am aware of.
but how to calculate that which i can share with you
Total target costs = Target cost debit + Target cost credit
Target costs are the planned costs adjusted to the actual operating
    rate.
The target debit on a manufacturing order is the sum of the
    activity-independent planned debit of the order and the
    activity-dependent planned debit of the order multiplied by the actual
    quantity of the order.
The target credit of a manufacturing order results from the goods
    receipt postings to stock. The delivered actual quantity is valuated
    with the planned price according to the price control.
The total value of the target costs is the sum of the target debit and
    the target credit.
The target costs are calculated during variance calculation and updated
    to the database.
The target costs cannot be shown until you have performed variance
    calculation for this target cost version. The target credit for the
    calculation of the total variances and production variances cannot be
    calculated until an actual quantity for an order exists after a goods
    receipt posting.
For the calculation of variances, the target costs are compared with the
    control costs.
The system uses the operating rate to adjust the plan costs of a period to the actual activity
Operating rate = (Actual activity  Plan activity) X 100
Total target costs = Fixed plan costs + Variable plan costs X Operating rate
example -
The system uses the operating rate to adjust the plan
costs of a period to the actual activity. The operating rate is based on the following formula:
Operating rate = (Actual activity / Plan activity) X 100
Targeet qty is ac alculated qty = BOM ratio * actual production qty
i.e. A product X is the componet
A production plan 10
Actual prodution = 12
Component qty plan = 1
component actual qty = 2
cost of compnent = 1$
target qty = 12*1/10= 1.2
I hope it will help you

Similar Messages

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

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,

Total Target Costs - Factory Output showing "0"

Hi,
We have repetitive manufacturing at our location here. After the backflush has been posted I am unable to see any factory output updates under target costs in my "costs" under cost collectors. We dont have std cost estimate for our materials and our material prices are periodically updated through material ledger through the monthly costing runs. All FG's have preliminary cost estimate and our target cost versions point towards this estimate. Could you please let me know what could be the reason behind not seeing any costs under the "factory ouput" under "Total target costs"?
thx,
CN

Hi
Please Transfer the source Cost Components to the Target Cost component structure ( Ex. Cost Component Structure 01, updating all the source CCS ) in T.Code : OKTZ
Please check and get back to me.

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 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
Supriya

Dear,
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

Target costs not updated timely when order TECO'd

In June 27 I displayed process order xxx in COR3 - Cost analysis report with the status of TECO but the column Total target Cost has no values. In June 29, I again displayed the same but already find an entry in the Total Target Costs. Please advise why there was a delay in populating the target costs.

Hi vijay,
Is it normal that the variance calculation will take 2 days to finish the activity? Will you please specify what activity you mean as well.
Thank you so much.

Target Cost was zero in production order

Hello,
We are experiencing every 1st day of the month target cost was zero for those production order which basic start date was on the 1st day of the month, this happen last march and this april it also happening but in january and february we did not experienced this issue. we wonder how this happening to us, since as we check those production order which basic start date was on the 2nd date and prior all has values in its target cost, this is for same finished material. How was this happening to our plant? how can we check and resolve this issue? am on a PP guy, as i have check the data of those order nothing peculiar for me, and it those material has cost estimate ok, this was released on the 01.01.2009 in this costing run will last untill of the year this was also been seen in the material master data current cost estimate.
As we have search for the performance assistant in SAP it thus tells us:
Total Target Costs
Total value of the target costs.
Calculated with the following formula:
Total target costs = Target cost debit + Target cost credit.
Use
Target costs are the planned costs adjusted to the actual operating rate.
The target debit on a manufacturing order is the sum of the activity-independent planned debit of the order and the activity-dependent planned debit of the order multiplied by the actual quantity of the order.
The target credit of a manufacturing order results from the goods receipt postings to stock. The delivered actual quantity is valuated with the planned price according to the price control.
The total value of the target costs is the sum of the target debit and the target credit.
The target costs are calculated during variance calculation and updated to the database.
The target costs cannot be shown until you have performed variance calculation for this target cost version. The target credit for the calculation of the total variances and production variances cannot be calculated until an actual quantity for an order exists after a goods receipt posting.
For the calculation of variances, the target costs are compared with the control costs.
Dependencies
The calculation of target costs depends on the selected target cost version.
But still we don't know how to check the issue and fixed it:
Please help us and guide us to resolve this issue
Thanks

Hi,
in some more details i have found out on our issue, one of the prerequisite for our variant calculation is Variance calculation at the manufacturing order level requires that the order is fully delivered (final confirmation is done) and technically completed ( except order pass through the mid night of period end ). Those informations can be displayed in the manufacturing order status.
order should be TECO right? but as said on this order pass through the mid night of period end can be have variance calculation, thus am right? this could be affect why the target cost was zero?
Thanks

Target Cost of KKS2

Dear SAP Guru,
I want to know the calculation procedure of "Total Target Cost" for Labor in KKS2.
In the KKS2 "Total Target Cost" of Labor is showing 72.91/=. But I cannot understand how it is come from.
Please advice me.
Best Regards,
Shoyeb

Hi,
The planned costs in target cost version 0 are taken from the material cost estimate.
The planned costs itself are not standardized or changed in the variance calculation but shown as they were updated.
In order to compare planned costs with actual costs planned costs are standardized to the output quantity and updated as target costs.
For variance analysis only the target costs shall be compared with the actual costs but not the planned costs.
regards
Waman

Total of actula product cost to total of target cost

Hi
all
Total of actula product cost to total of target cost .... How can we get data for this report plz provide me , is there any standard report available for considering this data
Many Thanks
MvNr

guess..........due to lack of full information in your thread, it is not answered.
Total of actual product cost to total of target cost...........??
which object ?? production order?? sales order?? wbs element??.......can u clarify?

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

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

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

Total target cost

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