Skip to Content
avatar image
Former Member

production order and cost

Hi,

I need advice on target vs actual in production order.

give simple scenario.

say costing run on FG on 2012-06-01 which costed at $3 per piece and the BOM is raw1 = $1, raw2 = $2.

on 2012-09-01, same FG now costed at $3.50 per piece and the BOM is raw1 = $1.20, raw2 = $2.30.

output to produce 1000 pieces.

1) raw materials issued to production order is considered as actual cost or product produced received from production order as actual cost OR

2) raw materials issued to production order is considered as target cost or product produced received from production order as target cost.

thanks

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

3 Answers

  • Best Answer
    avatar image
    Former Member
    Oct 01, 2012 at 11:42 AM
    11

    Hi Srina,

    Raw material issued to production is consider as actula cost.

    Target cost = Your std cost multiplied with deliverd qty.

    Eg; Rm issued toproduction order is $ 100

    G/R from production order = 5 qty

    Std cost estimation for 1 qty = $10

    Actula cost = 100

    Target cost = 50 ( 5 * 10 )

    Hope you under stood .

    Regards,

    Ram

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member Former Member

      Dear piet,

      May i know what is the use of configuration in OPL1 transaction and also please see the attached screen shot of display order in control tab.

      I thought as per the plan and actual variants system will calculates the plan and actual costs in order level also.

      Regards,

      Ravi

      untitled.GIF (23.8 kB)
  • Oct 02, 2012 at 03:05 PM

    Hi,

    Piet has given a clear understanding on the queries. Kindly go through the below documents alos for better clarity.

    Post Implementation Challanges Part 1

    Post Implementation Challanges Part 2

    Production Order Variance Part 1

    Production Order Variance Part 2

    Regards

    Ranjit Simon

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Oct 01, 2012 at 11:37 AM

    At the time of actual goods issue as per the costing price strategy sequence defined in costing variant actual system will pick. Actual Goods receipt always consider standard price in material master. In your example GR cost for 1000 Quantity for month of September production order is 1000*3.50=3500$

    Add comment
    10|10000 characters needed characters exceeded