OKG3

[Former Member]

Dear forum,

In OKG3, I see there are

WIP Calculation at Actual Costs

WIP Calculation at Target Costs

May I know what is target cost?

Thanks

[nico_dewaele]

Plan Cost: Planned Qty of the materials consumed for Planned Qty to be produced * Cost of BOM

Target Cost: Planned Qty of the materials consumed for Actual Produced Qty * Cost of BOM

Actual Cost: Actual Qty of the materials actually consumed for Actual Produced Qty * Cost of BOM

[Former Member]

Hi,

In terms of a Production Order:

If you have manufactured 10 quantity of goods and sent to stores out of 100 quantity of goods planned, then you would like to know what is the standard cost supposed to be for these 10 quantity. Then you will take the quantity structure supposed to be used for these 10 goods(ie raw material, activities, overhead) multiplied with the planned price, you will get the target price.

Kind Regards

Umapathi G

[Former Member]

Hi

Please go through the below mentioned link

WIP Calculation at Actual Costs

http://help.sap.com/saphelp_45b/helpdata/en/90/ba6a93446711d189420000e829fbbd/content.htm

WIP Calculation at Target Costs

http://help.sap.com/saphelp_470/helpdata/en/90/ba6609446711d189420000e829fbbd/content.htm

Hope it will help you

Regards

Praveen PC

[former_member588855]

Kindly check the link below whether this could be any help for you.

Regards,

Divraj

[Former Member]

Dear Divraj,

Thank you.

May I know target cost is similar to planned? Why it is called target?

Thanks