Work Center Activities

[Former Member]

Dear Gurus,

I am facing a situtaion wherein a particular work center is out sourced to a vendor in the client premises to perform labour work on machines provided by the client. Now the client is proposing to use two activity types namely Machine time (Time based -unit Min.)and a fix rate activity to pay for the labour charges at Rs. 10 per kg weight basis).

How to map this with work center formulas. Thanks in advance for your valuable inputs.

regards

vikgup

Edited by: VIK GUP on Oct 18, 2008 10:10 AM

[Former Member · Accepted solution]

Hi,

For "Machine Time"(Time based) anyway we can use the Standard value.

In costing sheet we can add weight based cost. If it is ok with ur client, fine. Otherwise you have to maintain an activity as "Kgs. of material processed", and this value is to be entered in the order. Give Rs 10 as price/ rate for this activity. Like this also we can fulfill that requirement.

Kiran.

[Former Member]

Dear,

I hope the operation confirmation is done in KG i.e kg of material produced.

If that is the case,

Create a activity type called External operation cost in KL01. Activity unit should be hr,

KP26 and maintain the rate as rs 10 /hr.

Choose a formula SAP006 (in std SAP) and assign this formula in costing view of WC and assign the activity type in m/c line.

Now in routing give the relation for this operation as 1 kg of operation production = 1 hr of m/c.

Now when you create production order depending on Kg produced..it give that many hrs.

Even when you confirm, the KG produced = that many hr, when nultiplied by the rate in activity type, gives the actual cost of operation.

I hope you go it of not come back.