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Jul 30, 2012 at 06:14 PM

Total Target Costs in Production order

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HI All,

In production order, Cost analysis shows production cost calculation. We are not much clear about Total target costs values. We can understand the Consumption(GI) and production order settlement(GR) cost, but how come system calculate Target cost for activity types(Machine/Setup/labor)? In what basis system calculate this value? from where system get the value for calculation except the activity price which we maintained in KP26.

And also we need the clarification regarding the cos calculation of overhead material and overhead production. kindly give me detailed explanation to check myself with real time data.

Thanks