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Set up cost in repetitive manufacturing

During product cost planning, setup costs of 1 EUR are planned. The costing lot size is 1000 kg.

During the period, 2 confirmations for 1000 kg are posted on this product cost collector. Actual setup costs are 2 EUR. In target cost however, the setup cost is 1 EUR. As a result, a lot size variance is calculated. This variance isn't wanted.

Is there a possibility to adjust the target cost calculation?

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2 Answers

  • Posted on Oct 15, 2019 at 12:32 PM

    Hi Pierre, is it possible for you to change manually the planned price through material master?

    What's the version you're running?

    Regards,

    Renato Netto

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  • Posted on Oct 16, 2019 at 07:56 AM

    Hello,

    It's a S/4 HANA 17/09 system. A manual change of the planned price is out of topic.

    My analysis of 328156 makes setup cost irrelevant for the majority of scenarii in repetitive manufacturing:

    Solution

    The lot size variance is calculated according to the following formula:

    • Lot-size-independent target costs * (1 - actual quantity/lot size)

    A comparaison between the lot size and the output quantity is too narrow in REM. X confirmations should give X * setup costs. Any thought?

    Pierre

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