SAP Tutorial – In SAP System you can analyze cost center with standard actual/plan cost center report S_ALR_87013611 this report provides sufficient information. but you can make advanced functionality to analyze cost center balance such as target cost and variance analysis.

Target cost allows for a more detailed analysis of cost center balance, because an increase in actual cost may be cause increase activities consumed.

target-cost-analysis-report

Target cost consists of two condition :

1.Activity Dependent Planning : You can carry out activity dependent planning by entering an activity type in the selection screen of transaction KP06.

2.Plan Activity Quantity and Prices : You need to enter plan activity quantity and prices with transaction KP26.

Target cost are continously calculated and reported on real time, you can view this report using transaction S_ALR_87013625

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