How the SAP system calculates the Target Quantity for production Order?

[Former Member]

Dear SAP Experts

How the SAP system calculates the Target Quantity for production Order?

Thanks in advance for your help

[Former Member]

Hi Lesley,

The target quantity of the production order is determined by the demand(Independent or dependent requirement) or from the Customer/Sales order and based on lot-sizing procedure as well.

MRP considers all the above factors and determined the target/total quantity for the Production orders when MRP is executed.

Regards,

Shyam

[Former Member]

Hello R Kulkarni and Shyam

Thank you for your replays.

I would like to understand how the system calculates that "Target Quantity" for all components (BOM) in the Production Order.

For example: A Production Order for finished Product "A"

Planed Production Qty = 550.962 Kg

Actual Production Qty = 606 Kg

Planed Qty for Component X=  1.750 Kg

Actual Qty for Component X=   1.542 Kg

Then the Cost Analysis displays "Target Qty" for component X= 1.655 Kg

I have understood the "Target Qty of the components" is: BOM ratio * Actual Production Qty

and the BOM ratio = Plan Qty of Component / Plan Production Qty so:

Target Qty of component = (1.750 / 550.962) * 606 =  1.92

But in the cost analysis report is 1.65 !

Thanks in advance for your help

[Former Member]

HI Lesley,

When you are looking at the Target qty cost, it depends on the yield value. Kindly check that and revert back.

Regards,

Shyam

[Former Member]

Hi Shyam

Target Qty Cost? one alone thing?

Target Quantity y Target Cost are thing different, right?

In the cost analysis report we see Quantities (Plan, Actual and target) and costs (Plan, Actual y Target), but Quantities and Costs are different things.

In tables I can find Plan & Actual Qty but I would like to understand how the system calculates that "Target Quantity" because this is not in a specific table.

[kenneth_snyder]

Not true. He is asking about Production Order Total Target Quantity not the desired Total quantity which is entered when production order is created