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OPL1 new production order planned cost / target cost

Former Member
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Hi,

I would like to know the correct price system use in production order planned cost / target cost.

2012-09-01 there is a costing run and released according to OKKN. at this point, raw1 = $1 and raw2 = $1.20 in material valuation where strategy is 1std price 2moving average. now FG standard cost calculated.

2012-09-05 additional purchase of raw1 and raw2 and now raw material moving price have moved to raw1 = $1.30 and raw2 = $1.50

2012-09-10 there is a new production order created and planned cost calculated. in OPL1, material valuation strategy same as per OKKN material valuation.

1 May I know now planned cost of my raw1 and raw2 in production order is raw1 = $1.30 and raw2 = $1.50, correct?

2 which means now the planned cost of my FG is $2.80 whereas target cost is $2.20? as i know planned cost is referring to OPL1 and target cost is based on standard cost estimation which is costing run (OKKN). Correct?

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

venkatasatyakrishna_achan
Active Contributor
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hi

there are different costing variants, one will be for  standard costing variant, planned costing variant and actual costing variant. while calculating standard cost or planned cost or even actual cost the strategy of picking raw material prices depend on valuation variant attached to plant or valuation variant in the costing variant.

according to ur statement the valuation variant is having standard price as the 1st strategy, so the system even calculates the planned price based on the sequence. Standard price of the raw material will be considered first if it is available otherwise moving average price will be considered.

wat u said will be correct only if there is no standard price in material master of the raw material

krishna

Former Member
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1. yes(if no standard price in the material master)

2.Yes your understanding is correct.

Regards,

Ravi.

Answers (0)