In this section you can create a valuation variant for the valuation of work in process and scrap at target costs. You define how the system calculates the target costs for the valuation of work in process and how it calculates the target costs for the valuation of scrap.
The target costs can be calculated as follows:
If you always want to valuate the work in process and scrap at the target costs calculated on the basis of a standard cost estimate, do not create a valuation variant.
Make sure that the cost estimate used as a basis for calculating the target costs fulfills the following requirements:
To be able to calculate work in process at target costs, the order must have the settlement type PER. That is, the default rule PP2 "PER" (periodic settlement) must be specified in the default values for the order type.
Define Default Values for Order Types
If you want to valuate the work in process and scrap on the basis of a version-specific cost estimate, make sure that the confirmations that affect simultaneous costing are also made on the basis of a version-specific cost estimate.
Check Confirmation Data for Repetitive Manufacturing Profiles
You must also have carried out the following steps:
The valuation of the work in process and scrap at the target costs calculated on the basis of the preliminary order cost estimate/version-specific cost estimate most closely approximates the true costs. If the quantity structure of the production order and process order is changed, or if the routing for the run schedule header is changed, the affected orders can be recosted. Future confirmations and the confirmations that have already been made in the current period are valuated on the basis of this new cost estimate.
For more information on the valuation of work in process and scrap at target costs, and for information on standard price calculation with a valuated sales order stock, see the document Cost Object Controlling.