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Jan 05, 2019 at 11:33 AM

Target cost & Allocated Actual Cost



I am running the KKS2 (Variance Settlement) and system has displayed the following costs:

- Target Cost (Std Cost x Actual Qty)

- Actua Cost (Actual Cost x Actual Qty)

- Actual allocated Cost

Variance is calculated as = Actual Cost - Actual Allocated Cost.

For may items, Target cost and Actual allocated costs are showing different.

I understand that actual allocated cost is nothing but the Standard Cost of the actual GR Value displayed in the cost report.

Why for many orders, the target cost and actual allocated costs are showing high difference ?

Please help.