can anyone explain me about "target cost version" pls

[Former Member]

hi experts ,

i am a sap-bi consultant . got to correct few sap-pp reports in bi. all are about target cost vs actual cost .

here i came across " target cost version"  i have tried to read multiple documents about this .but couldnt understand properly.

can you please help me by explaining this ??

i believe that target cost version used  to calculate target cost.it has got three values 0,2,1,3 and these values are used in  different situations

if my understanding is not correct mean pls correct me ...

can u pls tell me when we use 0,1,2,3 values for t.c.v....

thanks in advance .

regards,

hari

[Former Member]

HI Hari,

exactly how your 2,1,0,3 has been set up, is configuration, so we will not be able to help you with that.

However, in general terms, you have three concepts here: Actual, planned and target costs.

planned costs = planned quantities * planned prices, as per SCE.

actual costs = actual quantities (GR and GI) * actual prices.

target cost = using the actual GR, determines what *should* have been used to manufacture the qty that was GRed. These quantities of lower level materials and activities are then multiplied with planned prices.

Note: The actual  "buckets" can be filled with standard, depending on the requirements of the client. E.g., if backflushing is used, the actual quantity field will contain the standard to be used according to the quantity structure. Similarly, a standard price could be used in the material master. If there has been no change to the standard since the SCE was created up to the time the order was confirmed, the prices written into the planned, actual and target fields will be the same.

There is also a second meaning to "target costs". When you do a variance analysis, you have two sets of costs, one is the control costs, the other is the target costs. The comparison between the two sets of costs, yields a variance analysis.

[Former Member]

In OKEQ in the General Versions Definition you have general versions defined. From those versions you transferred versions 0, 1, 2 and 3 to "Controlling Area Settings" folder (these are kind of a planning versions). That is why you can have 4 target cost versions. Obviously, for actual postings you can use only one (version 0).

How you define your target cost version is another question - you do it in OKV6.

For control costs you can have planned or actual costs.

For target costs you can have planned costs, alternative cost estimate or current cost estimate.

Target cost version 1, 2 or 3 you will use for planning purposes but for planning in those versions. Actually, you can define your target cost versions in such a way that they will be identical to all plan versions.

Hope it helped

Cheers

J