SAP ABAP IMG Activity SIMG_CFMENUORKKOKV6 (Define Target Cost Versions)

Hierarchy

☛ SAP_FIN (Software Component) SAP_FIN
   ⤷ CO-PC-OBJ (Application Component) Cost Object Controlling
     ⤷ KK0C (Package) Customizing for Cost Object Controlling

IMG Activity

ID	SIMG_CFMENUORKKOKV6	Define Target Cost Versions
Transaction Code	S_ALR_87008060	IMG Activity: SIMG_CFMENUORKKOKV6
Created on	19981222
Customizing Attributes	SIMG_CFMENUORKKOKV6	Define Target Cost Versions
Customizing Activity	SIMG_CFMENUORKKOKV6	Define Target Cost Versions

Document

Document Class	SIMG	Hypertext: Object Class - Class to which a document belongs.
Document Name	SIMG_CFMENUORKKOKV6

In this step you define how you want the target costs to be calculated.

Target cost versions are used in the following ways:

• In variance calculation:
• To control which variance (total variance, production variances or planning variance) is calculated
• To valuate unplanned scrap(scrap variance)
Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap.
• When you are using a cost object hierarchy with active distribution, you use the target cost version to control which cost estimate the system uses to calculate the target costs, which are used as the basis for determining equivalences for actual cost distribution.

  The actual costs collected at the level of the hierarchy are distributed across the orders in accordance with these equivalences. This distribution is proportional to the target costs for the cost element under which the actual costs are written. Actual costs for material costs are distributed in proportion to the target costs for the origin group, such as for the material, if you have entered an origin group in the costing view of the material master record and have set the indicator Material origin, for example.

  If no target costs were calculated under this cost element, enter a cost element group in the target cost version. The actual costs are distributed in proportion to the target costs for this cost element group. This cost element group should be complete. If costs were updated under a cost element that is not in this cost element group, no distribution is possible.

You can calculate equivalences on the basis of SAP standard target cost versions 0, 1 and 3.

The standard system supplies the following target cost versions:

• Target cost version 0 (total variance)

  The amount of the total variance generates a posting in Financial Accounting during settlement.

  For this version, select actual costs as the control costs and standard cost estimate as the target costs.

• Target cost version 1 (production variance)

  For this version you choose actual costs as the control costs and planned costs as the target costs.

• Target cost version 2(planning variance)

  With target cost version 2, the costs from the preliminary order cost estimate are interpreted as control costs.

  For this version, select planned costs as the control costs and current cost estimate as the target costs. You cannot calculate planning variances for the product cost collector.

• Target cost version 3 (production variance of the period)

  You compare the planned costs of the period calculated on the basis of an alternative material cost estimate (such as a modified standard cost estimate) with the actual costs of the period on the basis of the yield delivered to stock in the period.

  The base quantity for variance calculation is the yield.

  For this version, you choose the actual costs as the control costs and the alternative material cost estimate as the target costs. To determine the alternative material cost estimate, enter a costing variant and choose a costing version.

The target cost version specifies which data is to be compared. The target cost version also specifies which variance variant is used and therefore which variance catagories are calculated. You can define a different target cost version for each controlling area.

Requirements

You must already have processed the following steps:

• Implementation Guide for Controlling general: Maintain versions

  Here you maintain a version in Maintain Versions and in the Settings in Controlling Area. Only the versions created there can be defined in this step as a target cost version.

• Create controlling area
• If you want to use the target cost version for variance calculation, you should perform the following steps:
• Define Variance Keys
• Define Default Variance Keys for Plants
• Check Variance Variant
• If you are using a cost object hierarchy, you should do the following:
• Under Define Cost Object Categories for Cost Object Hierarchies, check the cost object categories regarding variance calculation and distribution
• Under Check Cost Object Profiles for Cost Object Hierarchies, check the cost object profile regarding the variance key (if appropriate)

Standard Settings

The standard system contains predefined target cost versions that you can copy into your own controlling area without having to make any changes.

• Target cost version 0

  Target cost version 0 is the only target cost version that is relevant to settlement. That is, only the variances calculated with target cost version 0 can be settled to Profitability Analysis.

  Only in target cost version 0 can you specify a valuation variant for the valuation of scrap and work in process.

• Target cost version 1
• Target cost version 2
• Target cost version 3

Actions

1. Check whether the predefined target cost versions meet your requirements.
2. To create your own target cost version, proceed as follows:
1. Choose New entries.
2. Enter the controlling area, a number, and a name for the new target cost version.
3. Enter a variance variant.
4. Select the control costs.
5. Select the target costs.
6. Specify a cost element group if appropriate.
7. Save the target cost version.

Business Attributes

ASAP Roadmap ID	204	Establish Functions and Processes
Mandatory / Optional	1	Mandatory activity
Critical / Non-Critical	1	Critical
Country-Dependency	A	Valid for all countries

Assigned Application Components

Documentation Object Class	Documentation Object Name	Current line number	Application Component	Application Component Name
SIMG	SIMG_CFMENUORKKOKV6	0	HLA0009426	Product Cost by Order

Maintenance Objects

Maintenance object type

C

Customizing Object

Assigned objects
Customizing Object	Object Type	Transaction Code	Sub-object	Do not Summarize	Skip Subset Dialog Box	Description for multiple selections
V_TKV09	V - View	OKV6	9999999999	☐	☐	Target Cost Versions: Production Orders / Run Schedule Hdrs

History

Last changed by/on	SAP	19981222
SAP Release Created in