How the SAP system calculates the Target Quantity for production Order?

[Former Member]

Dear SAP Experts

How the SAP system calculates the Target Quantity for production Order?

Thanks in advance for your help

[Former Member]

Hi all, thank you for your replies!

We can found "Target Qty" in COSP table, only one time the Variance calculation (KKS2 Transaction) has been executed for the production Order.

The Selection parameters in the table are:

·               Object Number = Production Order   (OR + number)

·               Value Type = 5 (Target)

The Target Qty is the field  “Total Qty (MEG0XX)” where XX = month of the production order

Regards & Thank you

Lesley

[kiran_kumar179]

Lesley,

I hope this thread would helpful to you to understand target quantities in production order

BR
KK

[Former Member]

Hi,

Find differences plan/target/actual costs

Plan cost = Plan qty * std cost estimate

Target Cost = Actual qty * std cost estimate

Actual cost = Actual qty * actual costs

for ex:

a production order is planned for producing 10 units of a material

Then plan cost on the order = 10 units * std cost

Target costs are calculated once production is confirmed.

suppose only 9 units were produced out of 10 planned

Then target cost = 9 units * std costs

Actual costs = 9 units * actual materials consumed and activities and overheads

Regards,

Ravi

[Former Member]

Hi Lesley,

The target quantity of the production order is determined by the demand(Independent or dependent requirement) or from the Customer/Sales order and based on lot-sizing procedure as well.

MRP considers all the above factors and determined the target/total quantity for the Production orders when MRP is executed.

Regards,

Shyam

[Former Member]

Hello R Kulkarni and Shyam

Thank you for your replays.

I would like to understand how the system calculates that "Target Quantity" for all components (BOM) in the Production Order.

For example: A Production Order for finished Product "A"

Planed Production Qty = 550.962 Kg

Actual Production Qty = 606 Kg

Planed Qty for Component X=  1.750 Kg

Actual Qty for Component X=   1.542 Kg

Then the Cost Analysis displays "Target Qty" for component X= 1.655 Kg

I have understood the "Target Qty of the components" is: BOM ratio * Actual Production Qty

and the BOM ratio = Plan Qty of Component / Plan Production Qty so:

Target Qty of component = (1.750 / 550.962) * 606 =  1.92

But in the cost analysis report is 1.65 !

Thanks in advance for your help

[Former Member]

HI Lesley,

When you are looking at the Target qty cost, it depends on the yield value. Kindly check that and revert back.

Regards,

Shyam

[Former Member]

Hi Shyam

Target Qty Cost? one alone thing?

Target Quantity y Target Cost are thing different, right?

In the cost analysis report we see Quantities (Plan, Actual and target) and costs (Plan, Actual y Target), but Quantities and Costs are different things.

In tables I can find Plan & Actual Qty but I would like to understand how the system calculates that "Target Quantity" because this is not in a specific table.

[Former Member]

Hi, basically it depends upon the demand quantity which is in the form of Sale Order or PI for your finished product. After MRP, system generates the planned order and it is been converted (partially of Full) to production order.

Planned order qty also depends upon the dependent requirements indicator set in MRP 4 view of material master.

Also planned order quantity is based on the stock available or the planned order / open production order exists for same material.

For example, demand is of 10 qty, stock available is 2 and , planned order(firm) already exist is of 1 and open production order is of 1, then new planned order is created for 6 which then converted to production order.

Planned order qty also depends upon the lot size maintained in material master.

If you create production order manually, then you can specify the target qty as much you required.

Hope this useful to u.