Target cost is plan cost for a specific lot size of production. Target cost is calculated based on quantity of goods are delivered. For example, if a production order has lot size 100 pc. Standard cost estimate is 100 usd/pc. Number of goods delivered is 50 pcs. That target cost displayed on cost object collector is 50*100 = $5000.
Here is a example of Product Cost Collector detailed report.
Sometimes, when working with newly configured plant, company code and material, the target cost is not shown. In this case, the following checks should be performed:
- If there is any goods issue from the material of the product cost collector. Go to tcode CO03 to see how many goods are delivered.
If there is goods received, and target cost doesn’t come on reporting table, check if company code currency is the same as controlling area currency. If not, maintain “Additional cost component splits in controlling area currency” (TCode: OKYW) for current company code and Costing Type, Valuation Variant used in Cost Estimate of the product cost collector. . After that, delete current costing run (t-code: CKR1) and re-update standard price for the material with transaction code CK40N. Material price will be updated with currency of controlling area.
Now you can check target cost again.