Diagnosis
You are attempting to do the following:

• Calculate work in process at target costs


• Calculate variances

You may also be attempting to calculatescrap variances duringvariance calculation on the basis of the confirmed operations orreporting points.
The work in process or scrap is valuated in accordance with thevaluation variant for work in process and scrap (WIP) as definedin Customizing for Cost ObjectControlling. If you have not defined a valuation variantfor work in process and scrap, valuation is based on thestandard costs for thematerial being manufactured.
Variance calculation compares the actual costs with the target costs.The target cost version determines which cost estimate is used as thebasis for calculating the target costs. Target cost version 0calculates the total variance. Target cost version 0 explains thedifference between the debit and credit at the order level. The creditis made in accordance with the price control.
The cost estimate that is relevant to the valuation of work in processand scrap must be based on a routing so that thesystem knows the cost of each operation.
The system calculates the target costs on thebasis of the cost estimate relevant for variance calculation and forthe valuation of work in process and scrap. The scrap and work inprocess are valuated at target costs. This valuation is separate foreach operation.
The error occurred because the routing for the confirmation in theactuals was made for reporting points or milestones
that do not match the structure of the routing for the costestimate relevant for target cost calculation. This had the followingconsequences:

• No work in process could be calculated


• No variances could be calculated


• No scrap could be calculated

This may have happened for any of the following reasons:

• You want to valuate the work in process and scrap with the target costs
calculated on the basis of a standard cost estimate, and you have useda cost estimatewithout quantity structure (
unit costing) to calculatethe standard price for the material being manufactured.

• You created a production order or
process order and then added operationsmanually.

• You specified a repetitive
manufacturing profile inrepetitive manufacturing for thematerial being manufactured that does not allow reporting pointquantities to be entered.

• You changed the reporting point structure in repetitive manufacturing,
but weren't using flexible reporting points (see also:Flexible Reporting Points).

• You defined a production version for the
material being manufactured that specifies a different routing thanthat on which valuation is based.

• You are using the routing on which the relevant cost estimate in the
actuals is based, but you modified it.

System Response
Processing is terminated.

Procedure
Check to see which cost estimate is being used to calculate thevariances and to valuate the work in process and scrap.
If you want to valuate the work in process and scrap atstandard cost, check to see which quantitystructure was used when the standard priceof the material was calculated. In non-order-related manufacturing, youdo this by looking at the costing view of the material's master record(see: Display material master record).
Check the information in this standard cost estimate:


• If the standard price was calculated in a cost estimate without
quantity structure, you cannot calculate work in process or scrap onthe basis of a standard cost estimate for the material (see:Display material cost estimate). You can stillcalculate variances, however.

• If the number of operations in the cost estimate is not the same as the
number of operations in the order, or if different operations aredefined as milestones or reporting points, you must create, mark, andrelease a new standard cost estimate (see: Creatematerial cost estimate).
In sales-order-related manufacturing, standard costs are calculated onthe basis of predefined valuation variants. For detailed information,see the document Cost Object Controlling.
In repetitive manufacturing, check the repetitive manufacturing profileand the production version in the MRP view of the material'smaster record.

• If the repetitive manufacturing profile does not allow reporting point
quantities to be entered, you cannot calculate work in process orscrap. Check the control data of the repetitive manufacturing profilein Customizing.

• If the production version specifies a routing that does not match
routing used for the standard cost estimate, you must do one of thefollowing:
Change the production version accordingly.
Create, mark, and release a new standard cost estimate on the basis ofthe routing in the production version. You can enter the quantitystructure in the costing view of the material's master record.
If the valuation variant specifies that work in process and scrap arevaluated on the basis of planned costs, thismeans that the valuation should be based on apreliminary cost estimate for theproduction order orproduct cost collector.

• If the valuation is to be based on a
preliminary cost estimatefor the manufacturing order
or for the product costcollector, you must do the following:
Make sure that a preliminary cost estimate has been created for themanufacturing order or product cost collector.
Make sure that no changes have been made to the quantity structure.
Make sure that flexible reporting points are being used in repetitivemanufacturing.
Read the documentation on flexible reporting points in thedocumentation Product Cost by Period.
If you want to valuate on the basis of an alternativematerial cost estimate (such as amodified standard costestimate or current cost estimate), you must do the following:

• Make sure that the production order uses the same routing, or that the
process order uses exactly same master recipe
.

• In repetitive manufacturing, make sure that the production version uses
the corresponding routing and that no changes were made to this routingafter the cost estimate was created and production began.
If you are using a valuatedsales order stock or avaluated project stock,check the valuation strategy in the requirementsclass.
If you don't want to calculate scrap, turn off the Scrapindicator in the variance key.
Consider using the user-defined error management feature. When you areusing a product cost collector, this allows you to output the relevantvalues for the product cost collector as a whole, even if it is notpossible to determine the values for all of the logistical ordersassigned to the product cost collector.