How to calculate Target cost for the production order?

[Expert]

I understand the way system calculates Plan costs for every production order. It also shows in Plan vs Actual reports.But the column for Target costs is always blank. How do we get the target costs for the production order in S4HCE?Is there any different configuration or transaction required to calculate Target costs?

[LilingJia · Accepted solution]

it looks like the Target Cost concept is not so easy to understand. Hope i could use this chance to explain a little bit.

The target costs are calculated based on different target cost planning categories.

For how you could Calculating Variances, please refer to this document. please note, Only the variances calculated on the basis of target cost version 0 can be settled to profitability analysis.

https://help.sap.com/viewer/4032610758dc437089f0c28320eec93f/2005.500/en-US/a91a04533b8a8d4ae1000000...

hope this could help you understand the concept and also get the desired result.

best regards,

liling

[former_member132363]

Here are some SAP resources you may review based on your topic "calculate | target cost | plan costs | target costs | costs | production order | transaction"

Best Practices for SAP S/4HANA Cloud

Revenue is calculated based on quantity, and costs are matched with revenues ( posted as ... Real-time Production Cost Posting - This scope item updates work-in -process ... of recurring fees (billing plans) in the invoicing component in SAP S/ 4HANA ... Engineering) to a defined target usage type (for example, Production).

https://support.sap.com/en/product/best-practices-s4hana-cloud.html

2377246 - Successfactors LMS Glossary Terms

The unique code used to track charge back information of a transaction for the ledger. ... Associated costs are any cost of conducting a segment of an item that have ... statuses for the selected initiative: On Target, Behind Plan, and Ahead of Plan. ... The Policy is the set of rules used by the system to calculate what the user is?...

https://apps.support.sap.com/sap/support/knowledge/public/en/2377246

Analyzing Sales Commissions using KPI Design in S/4HANA Cloud

Nov 21, 2018 ... A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is performing in line with its target?...

https://blogs.sap.com/?p=544