Target Cost view in the Target/Actual Comparison - Production Order Cost Analysis

[former_member218048]

Dears

We have many production orders (make-to-order scenario) and processed with confirmation and Goods receipt.

After doing the goods receipt, when we display the Target/Actual Cost report in CO03-> Cost Analysis, all target cost are appearing zero.

We have not done the Variance Calculation yet. If we do the KKS2, it wil be appearing. We are having the target cost version 0 only.

I guess, the target cost can be seen in the Cost Analysis after posting a Goods receipt on the production order.

Please advise and guide me.

[VSNGupta]

Dear Nikki,

Target Cost is nothing but Standard Cost for Actual Production. Unless you tell the system the Actual Production is completed by having the status of the order either DLV or TECO, the system cannot give you the target cost and you also need to run variance calculation.

[Eagle1]

what happened if the order is giving you DLV status but still no Actual Cost for labor and OH?

[former_member218048]

Ok, thx.

Hence I assume that actual GR confirmation on the Order will not help to display the target cost for information purpose also.

[former_member259539]

Dear nikki saju

Please note that there are two conditions to calculate variance

1 Full settlement rule is required

2 Status DLV (Delivered) or TECO ( technically Completed ) is required.

In your case if order is 100% Delivered or assigned TECO status manually then only after running variance calculation, system will compare target and actual cost and assign variance categories.

[former_member218048]

Thank you Ajay.

But Variance Calculation can be done only after the order gets the status 'TECO' or 'DLV', right ?

So, no target cost display possible in the Cost Analysis (even for information purpose to the user) even after GR done ?

(Target cost = cost incurred on the actual quantity produced). So after GR, the Target cost should appear logically, I guess.

[rajneesh_saxena]

Hi Nikki

Logically target cost should be calculated when no more GR is expected against the production order. With the status DLV or TECO system understands that no more GR is expected against it. And when you do variance calculation, system calculates target cost for the GR quantity with TECO or DLV status of order.

Rajneesh Saxena

[ajaycwa1981]

Nikki

That’s perfectly fine. Target costs appear after variance calculation