Valuated WIP at Target Cost or Actual Cost

Hi,
In a production order, how do we valuate it at target cost or actual cost?
Thanks,
Teo

Hello Sir ,
As per sap wip is valued at actual cost only.
Thanks & Regards
A.V.J .Krishna Reddy

Similar Messages

MESSAGE ERROR: WIP a target cost only possible with Product Cost by Period

I work with orders assign to WBS Element (Non-valuated stock).
If I enter confirmation to an order created, and then execute KKAX transaction to calculate WIP, the system shows this error message u201Cu2018WIP a target cost only possible with Product Cost by Periodu2019u201D, but actually the result has been calculated ok.
If WIP is executed collectively KKAO the error message is the same but the result is not calculated
Everything suggests that what we want is possible, but the error doesnu2019t disappear
Does anyone know what could be reason for the error?
Thanks

Hi
Check your RA key and WIP customizing... WIP at target cost is possible only in Product cost by period
Check your settlement rule in Prod Order.. I guess it would be FUL and not PER.. FUL settlement means you are in product cost by order.. There seems to be a mismatch between your settlement type (FUL/PER) and WIP config
Moreover, if your stock is non valuated, do you at all need to calculate WIP for prod orders? I dont think so
Ajay M

Wip to target cost

Hi,
I created a production order for 10 quantiity.
I have a consumption for a component but I don't delivered finish product.
When I calculate WIP, the system doesn't show the cost only for consumed component but calculates wip considering all the material and activity of quantity structure.
Could you help to understand me?
Thanks
Regards

Hi,
In transaction OKG3 - expert mode , please check your RA type for the RA key that you are using. It should be F for the REL status.
I think in your case , it is not the same. Please check and revert if it works.
Regards
Ranjan Kumar

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

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

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

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

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.
Please suggest how it can be populated.
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
Regards
Ajay M

Actual / Planned / Target Cost and Quantity

Hi Experts,
In the company that I am working there is the need of having a report with the following information:
Plan Cost, Actual Cost, Target Cost, Planned Quantity, Actual Quantity for diferent materials using the cost component split structure or with the different accounts.
Can anyone helpme with this need?
Regards
Edited by: DAG123 on Jun 30, 2011 2:59 PM

Hi
COSP: For External Postings (Target/Plan/Actual)
COSS: For Internal Postings (Target/Plan/Actual)
COSPD (Actual only): Settlement entries i.e. GR and GI upon confirmation, for Primary cost elements
COSSD (Actual only): Settlment entries i.e. activity confirmation
Target/Plan/Actual is differentiated by a separate indicator
br, Ajay M

Huge Variance between Target cost and Actual Cost

Hi,
In Product Costing,I am getting Huge variance between Target cost and Actual Cost.It is showing the Target Cost as ZERO.Why i am getting this target cost as Zero? what could be the reason? Kindly help me in fix this issue.
Thanks
Supriya

Dear,
First do the GR final DEV for Production 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. And you will get the Variance also right.
Please try and come back.
Regards,
R.Brahmankar

Target Cost and Actual Cost

Hi All,
When is the target cost and actual cost gets populated and from where does the data comes from liek labour,machine,overhead cost comes?
Thanks in advance

Dear Friend,
speaking from controlling point of view, target and actual costs will be flown from "costing variant planned" and "costing variant actual" respectively.In above mentioned varinats, whats the process has to be followed to calculate material costs,activty costs,overhead costs etc will be defined. These variants will be assigned in order type dependent parameters OPL8.
Target Costs - In standard cost estimate(ck11n),target cost will be calculated in the following way
                          -material cost from material master and BOM
                          - activity costs from routing( for this u need to plan the activity costs in KP26)
                          - other costs from the definitions of planned costing variant.
                   - after running the standard cost estimate,u need to mark n release(ck24).
Actual Costs - material costs frm goods issues (via goods mvmts thru MBIA,MB1B etc) against
                      production/process order.
                          - activity costs(as per the price u plannned in KP26)through operation confirmation in
                            COR6N/CO11N.
                          - any other costs like overheads,cost center issues etc as per the process defined
                            in 'actual costing variant'.
Hope this will clear your doubt.
Rams.

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

Target cost /actual cost /variance issue

hi
target cost as per cost component structure is appearing after production order is saved
but after production order confirmation T Code CO15 actual cost is appear but target cost disappeared and because of this variance showing full value of actual cost
why this is happening
what is the reason
please suggest to resolve the issue
Regards
Dharmendrar

Dear,
Once you do the GR of that Prod Order and the status will DLV then the Target will show. Run KKS2 and then check your result.In production order or KKBC_HOE
Regards,
R.Brahmankar

KKS2 ran for future periods; Target costs double the actual costs

Hi
Variance calculation was accidentally run for period 011/2012 and it affected several orders in that the target costs are showing double the actual costs (period 01 + period 11) of year 2012.
Is there some report in SAp that would give us a list of orders for which KKS2 (variance calc) was run for period 11 2012.
Best wishes
Raj.

hi
Thanks for your responses. But nothing has answered my question
Is there a report in SAp that could give me a list of all orders for which variance calculation was run for period 11 2012?
I used several reports including KOB3 and s_alr_87013140 but nothing gives me that list.
Thanks in advance for your replies.

Split valuation for Finished Goods - Target cost was not updated

Hi,
We are following split valuation for 'Finished goods'.
Valuation typte 1 is for 'manufacture' and
Valuation type 2 is for 'External procurement'
For production orders with this material, we are not getting target costs. It is showing zero.
We have done release of standard cost estimate before creation of production orders and goods receipt for these orders. But still it is not updating.
Pls guide me.
Regards
MadhuSekhar Gupta

Hi,
Thanks for your reply.
At the time of variance calculation only the credit part of target cost will update and at the time of goods receipt debit part of the target cost will update.
Our client has done goods receipt but debit part of the target cost was not updated. and the order status is DLV.
I simulated the scenario in QAS by creating new finished goods materials (Industry-Construction) one is with split valuation and another is without split valuation, then the debit part of target cost was updated at the time of goods receipt and credit part was updated at the time of variance calculation for both the materials. So this problem was not arised because of split valuation.
Was this problem arising because of the material master data, because for one material it is updating and for another it is not for the same configuration?
Regards
MadhuSekhar Gupta
Edited by: gms gupta on Oct 22, 2011 3:39 PM
Edited by: gms gupta on Oct 22, 2011 3:41 PM

Valuated WIP at Target Cost or Actual Cost

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