Skip to Content
Former Member
Oct 06, 2012 at 01:21 AM

target cost on component in prod order



I would like to know how target cost being shown in production order for BOM component.

I know planned cost getting base on OPL1-ppp1 valuation strategy.

I know target cost getting base on OKKN

I know actual cost getting base on OPL1-ppp2 valuation strategy.

Say to produce FG, i need raw1 and raw2 which are moving price.

2012-09-01 after costing run, FG is costed at $2 where raw1 = $1.20 and raw2 = $0.80

2012-09-10 additional purchase of raw1 and raw2 and now price have moved where raw1 = $1.30 and raw2 = $1.00 BUT FG standard cost of course still remained the same which is $2 since costing run on 2012-09-01.

1) on 2012-09-15 production order created. the planned cost which base on OPL1-ppp1 valuation strategy will be this? Correct?

raw1 = $1.30

raw2 = $1.00

and FG will be deriving from raw1 + raw2

2) actual cost which also base on OPL1-ppp2 will be the below. Correct?

raw1 = $1.30

raw2 = $1.00

and the FG will be deriving from raw1 + raw2

3) target cost, from what i understand from forum, it should be the costing run price where FG is $2.

may i know what about raw1 and raw2? what price are they as moving price already changed on 2012-09-10 and also during costing run, there is no way to lock down the raw1 and raw2 price some where.

FG =

raw1 =

raw2 =