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Former Member

Production Order Plan, Target and Actual Quantity and Cost Calculation

Hi All,

I was searching on the net but I can't find the formula in computing the Plan, Target, Actual Quantity and Cost. Does below computation correct?

Total Target Quantity = (BOM Standard Quantity / BOM Base Quantity) x Total Target Quantity of Product

Total Plan Quantity = (BOM Standard Quantity / BOM Base Quantity) x Planned Quantity of Product

Total Actual Quantity = Actual quantity inputted during Goods Receipt


What about the plan, actual and target COST? What is the correct computation.

Please help us on this as we have a hard time in computing the cost manually.


Thank you.


Jesielle


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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jun 10, 2014 at 08:14 AM

    Hi

    Target quantity is generally based on BoM used in standard cost estimate, hence target costs are based on standard cost estimate.However this is based on the setting in Controlling whether to use standard cost estimate or plan cots or material cost estimate for target cots.Refer target cost version in customization for controlling under variance calculation

    Planned costs are costed for the production order, hence BoM used in production order is costed.

    Actual costs may contain both planned and unplanned components used in order.

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  • Posted on Jun 10, 2014 at 12:42 PM

    Hi Jes

    A small example is below:

    BOM of FG1 for 100Kgs is as under

    RM1 20 Kgs

    RM2 40 Kgs

    RM3 50 Kgs

    Prod Order made for 200 Kgs of FG1

    Prod Order confirmed 200 Kgs (planned output)

    Actual production 180 Kgs (actual output)

    Order will look like below:

    Unit Plan Actual Target

    RM1 Kgs 40 40 36

    RM2 Kgs 80 80 72

    RM3 Kgs 100 100 90

    Target quantity calculated as Plan input qty/plan output Qty x Actual output Qty.

    Cost always depend on the valuation variant used for order cost.

    Now coming to plan column. This comes as per latest BOM and routings. In my example I am considering that there is no change in BOM and routings from the date of standard cost estimate to the date of order.

    In actual column, quantity may change as per actual usage of materials RM1/RM2/RM3. I assumed that actual usage is as per standard.

    Hope to some extent I am able to make you understand.

    Regards

    Rajneesh

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