Analyzing Costs on Production Order

[former_member530044]

Dear Experts, When analyzing costs on a production order ( go to=>Cost => Analysis) On the column “Total target Qty” how the system gets this value? In other words where can i see how the system takes this values from “Total target Qty’ , “Total Plan Qty” and “Total Actual Qty” ? Thanks in Advance, Regards.

[former_member530044 · Accepted solution]

Dears,

Thank you all for the prompt replies, My issue is that the column "Target Qty" shows exactly the double of "Planned Qty", do you have any idea what data should i check? or where can i find the customizing which makes this "double" value?

Thanks in advance,

Regards.

[Former Member · Accepted solution]

Dear Leandro,

Let me explain you in simple terms...

Target Cost : Current Standard Cost (once a cost estimate is released at the period end it sits in material master as standard cost. This standard cost is based on structure of BOM & Routing which was existing at the time of calculation of Standard cost. So Production orders which are made after this date & before the date of next update of Standard Cost would calculate target cost based on the structure of Standard cost estimate which was last released.

Plan Cost: During the Production order it might happen that you change anything in the structure from which standard cost is calculated or you use an alternative to the structure of Standard cost Estimate. Plan Cost & Actual Cost calculation is based on the configuration as I highlighted in my previous post & is very dynamic in nature & not static as target cost. It means, anything changes in the structure would be immediately reflected in the Plan Cost.

Now while production, if you change anything in the structure, the change would be highlighted as an variance.

In your case, the target quantity is double from Plan quantity might be because of in Routing of the material the Base quantity used for calculation of Standard Cost might be double & after the cost estimate has been released it was reduced to correct figure Or the Alternate routing was used while calculating standard Cost & in actual production.

Please check....

Regards,

Akhil

[Former Member]

Hi Leandro - We are running production orders and we are getting 0 values in the Total Tgt field on the Co03 transaction. The standard was in place before the production order was run. Any ideas what might be causing this?

Let me know and thanks,

Joel

[Former Member]

hi,

Meaning for target cost :

Standard price for the Actual quanity.

Standard price what you have estimated using ck11n will be considered for the actual quantity for the said production order.

Say Std Price for Material A is 10 for 1 unit as you have estimated using ck11n.

Production order created for the 100 units of Material A.

Then IF you go for cost analysis " Target cost will show Rs.1000" ( 100/1 * 10)

Dear experts plz advise me if I am wrong.

Thanks

[former_member183818]

Hi,

KIndly go through the blog "Understanding Production Order Variance Part 1"

http://scn.sap.com/community/erp/manufacturing-pp/blog/2012/03/13/understanding-production-order-var...

[Former Member]

Dear,

First of all look at the IMG tcode: 0kv6 in relation to your COntrolling Area & target cost version. There you will see what makes up the Target Cost. Usually for Target Cost version '0' the target cost is Current Standard Cost. It is only from this version from which variances are calculated.

For Target Cost version '1' the target cost is Plan Cost.

In case of standard cost the BOM Routing used in the standard cost estimate is what is reflected in a cost analysis of Production Order.

For Plan cost analysis the following configuartion is required or checked:

1. OPL1: Costing variant for manufacturing order

2. OPN2: Valuation Variant for manufacturing order

3. OKZ3: Define cost accounting relevant field for order type & plant. (here you assign the above variants)

On the basis of above configuration you have to check in the individual Production order whether the values are getting correctly or not as stated in above thread.

Thanks & Regards,

Akhil

[Former Member]

Hi there,

Actual Quantity shows your confirmations on order

Target Quantity shows quantity that should have been confirmed according to standard cost estimate for actual units received, i.e. if your order is of say 300 units, and you have received 130 of them, then target quantity will show quantity of material and activity required for 130 units (check active cost estimate, ck13n) .

Planned Quantity shows quantity for whole order, i.e. in above example this will be showing required quantity for 300 units (check cs12 or cs03, explode bom for total units of order)

Br,

Tayyab

[former_member530044]

Hello Tayyab,

Do you know where can i find this field "Target Quantity" ? I mean where is it? on the production order? on the routing? The input you know.

Tks in Advance

[Former Member]

Hello Leandro Vargas Gandarillas

Target quantity is just the planned quantity used in Standard cost estimate which is defined in Routing.

Regards

[narasimhulu_konnipati]

Dear,

It takes values from Production order only. CO03, You can check this.