Activity Price shows differ in Std Cost Estimation & Production Order(comp)

[Former Member]

Hi PC Experts,

I am facing issue in Target & Actual price for Activity when my it remain same at Std Cost Estimate & Production order Confirmation.

Activity price in KP26 as below:

Activity price

Mach Hr 100

Labour Hr 100

When I did Std Cost Estm activity price deteremined as below:

Mach Hr 95.5

Labour Hr 95.5

When a production order confirmed:

Mach Hr 100

Labour HR 100

I have deleted the cost Estimation in CKR1 and re-calculated the cost in CK11N. But still getting same error. Please let me know how to fix this issue.

Thanks & regards

YJ

[former_member588855 · Accepted solution]

Check the plan and actual costing variant assigned to the order. How you have defined the variant.

Regards,

Divraj

[Former Member]

Dear Yoges,

In cases of MTO scenarios, the Target price is normally based on the Sales Order cost estimate.

However, for sure that the activity rates are picked as per the valution variant configuration in the respective costing variants.

Kind Regards

Umapathi G

[Former Member]

Hi All,

Thanks for your valid input, I have done the R&D and found out the root cause for issue in price that is because of:

In Activity Type master UOM is HR

In Workcenter Activity Type UOM is Min

I have maintained the value in KP26 as Rs 1000 for 1 Hr,

In routing i have input the activity unit for operation is 14 minutes, then result should be 233 (1000/60*14) but i am getting 200 means rounding off function is performing.

Can anyone faced this issue, if yes, please let me know the solution for it.

regards,

YJ

[Former Member]

Dear YJ,

Generally for Product costing three Costing variants are used.

1. Product cost planning which is used to update the Material master

2. Preliminary Costing which is used to cost the Production order once it is created.

3. Simultaneous costing which is used as and when actuals are booked to the production order.

So as per your mail, you are getting this problem when Standard cost estimation is done. Hence check the Valuation variant in the costing variant used for Standard cost estimation. I think the first strategy used should be the "Average for all the period" indicator. Hence 95.5 rs

Check and let me know.

Thanks,

Ravi