Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Production Order Costing

Dear Experts,

I am new to SAP,

I want to know how the Costing of Production Order is done?

What is Total Target Cost / Total Actual Cost / Total Plan Cost?

And how these costs gets calculated.

Thanks in Advance,

Srinathan.

replied

Dear,

Please refer this link,

[How Costing takes place in Production Orders |http://www.sap-img.com/production/how-costing-takes-place-in-production-orders.htm]

In CO02 (From Menu Bar you can select Cost---> Analysis)you can check the cost of Production Order.

http://www.sap-img.com/financial/simple-overview-of-product-costing.htm

The actual cost is the Cost of the material after the Production Confirmation.

Plan cost is the cost of material before the production...

Target that means for this particular material the cost will be targeted eg:20 $ the after the production the cost of material should not exceed this cost. Genarally in CO we will define Target cost is getting calculated in the Production order based on the "Standard Cost Estimate" after GR. Planned costs are calculated based on the current costs.

The T.code KKBC_ORD for the Planned Vs Actual Cost is helpful report

In short:

Plan Cost = Planned Quantity X Planned Price

Actual Cost = Actual Quantity X Actual Price

Target Cost = Actual Quantity X Planned Price

Regards,

R.Brahmankar

0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question