Target Cost Calculation for activity in process order

[Former Member]

Dear All

I had Create on Process order and done the activity Confirmation i want to know how the system Calculate the Activity Price of Target Cost in the process order  i had maintained KP26 : price as 4.45  as per below Screen shot

During activity confirmation in the operation of process order i had confirmed as per the below screen shot

in Process order Activity Traget Cost is showing me as Rs.641 i had showing in blue in colour

And Actual and planned Qty of the process order is   as follow

[jason_shao · Accepted solution]

Hello Trinath,

The fomula should be based on the material cost estimate of CK13N
.

taget cost =target qty * price(=plan qty*price/lot size*yield->plan value in cost estimate/lot size*yield)

You can compare if it is correct or not.

Best regards,

Jason

[Former Member · Accepted solution]

Hi Jason

Thanks for the formula I will check and revert you back

thanks

Trinath

[Former Member · Accepted solution]

Hi Jason

Please explain with some example as i mentioned in above table

thanks

Trinath

[kamalkumar_biswas2]

Hi

It will calculate based on planned usage of power

planned power qty/planned prod qty * act prod qty * std rate of power

Kamal

[Former Member]

Hi Kamal

Please correct me if i wrong as per above formula my i am getting  following Answer which is not matching with the target amount from above screen shot as i mentioned as arrow button

Thanks in Advance please assist further

Thanks

Trinath

[kamalkumar_biswas2]

Hi

Logic seems to be right..but can you tell what is your act consumption of power for 85 qty of actual prod...then we can some clue..but will match because target cost is "plan cost at actual prod"

Kamal

[Former Member]

Hi Kamal

I am not able to understand  act consumption of power for 85 qty of Actual prdn please elaborate more

Thanks

Trinath

[kamalkumar_biswas2]

Hi

You are consuming Power through activity consumption. right? so at the time of activity consumption of power , you have confirmed some qty of power for actual production..in cost tread layout you can get actual qty of power pl see that

kamal

[rajneesh_saxena]

Hi Trinath

Have you done variance calculation on order. If not, do it on test mode and then see the target cost.

Regards

Rajneesh