Hi Karthikeyan G,
Regarding your question:
"As per above posting, target cost is northing but standard cost estimate cost and "actual allocated cost = coming from goods receipt production order (101)" which also I think will post based on standard cost estimate only right?"
In "ideal" world your statement would be correct. But in real world there are several reasons for standard cost estimate not beeing equal to GR value.
Just to list a few:
1. Mixed costing scenario
GR posting is done at mixed costing value while target costs are calculated according to standard
cost estimate per production verssion in production order. They are so called "Mixed Cost
Variances" (output variances).
2. You have lot size independent costs - fixed quantity of components or activities regardless
of quantity of produced material. Standard price (GR value) is based on costing lot size but target
costs are based on order lot size.
3. You haven't released your latest standard cost estimate.
Regards,
Szymon