How does the flow of costs works in SAP PM?

[Former Member]

Dear Experts,

I just wonder how SAP PM handle the flow of costs from the point the maintenance order is created to the point of completion.

And also where do all the costs pre-recorded such as man-hour rate, is it in the "work center" master or somewhere else?

Regards,

Abraham

[peter_atkin]

[SAP Help 1|http://help.sap.com/erp2005_ehp_04/helpdata/en/3c/abbe9f413911d1893d0000e8323c4f/frameset.htm]

[SAP Help 2|http://help.sap.com/printdocu/core/print46b/en/data/en/pdf/PMISREP.pdf]

PeteA

[Former Member]

Just one more last question about cost transfer

[Former Member]

Hi,

first of all, let me wish you all a blessed new year..

As far as I know, there are 3 types of costs, estimated cost, planned costs and actual costs. When and where all these 3 types of costs recorded in SAP PM?

regards,

Abraham

[peter_atkin]

Do you mean where in the order, or where in the database tables?

PeteA

[Former Member]

Hi,

1. estimated cost : You can enter this cost manually in order Header , In Header Data >>> Costs while creation of Order.

2. planned costs : After Confirmation of operation, service etc cost will reflect

3. actual costs : After settlement actual cost will appear

These cost can be viewed at Costs tab of Order.

Hope this will help you.

Riyaj

Edited by: riyajmaner on Jan 1, 2011 1:52 PM

[Former Member]

Hi Riyajmaner,

thanks for your reply. I'm a bit confused here as I couldn't see the flow. As far as I know, the estimated cost could be entered upon creation of maintenance order (at the cost tab). But as for planned costs, I couldn't find where to key in at "confirmation completion". I guess the "completion" is where I supposed to key in all the actual costs which one of them is the "settle" function.

Do you have any link that shows clearly about the flow?

Regards,

Abraham

[Former Member]

Cost flow in maintenance orders:

I am summing up the answers already given.

1. Estimated costs: This is an approximate value, entered during creation of maintenance order. This value is for information purposes only and will not be validated any where.

2. Planned costs: When external procurement of spare(non-stock)/services are required, they are entered in the maintenance order. The spares will have cost in material master. Service cost is entered manually while creation of maintenance order. These costs are calculated when the order is brought to u2018Releaseu2019 status, and appear as u2018planned costsu2019 in the costs tab.

3. Subsequent purchasing activity u2013PR to PO conversion is done and when the material is inwarded, the actual cost as per PO, flows to maintenance order u2013 and populated as u2018Actual costsu2019. Same case happens when service entry sheet is created for external services.

4. Now the cost sits with the maintenance order. This must be settled to a cost center, assigned to the equipment, for which maintenance order is processed. When actual settlement is done for the order, the actual cost moves to the cost center and the order value becomes zero. This activity is required from FI Controlling point of view, to accrue the total expenses done on the equipment and adding them to the production cost incurred, using that equipment.

JP

[Former Member]

Thanks JP..

Now I can see a better picture.. the rest of the details, I'll explore further on my own..

Regards,

Abraham

[Former Member]

Hi JP,

Just to clarify on the item 4, about the "cost transfer" from maintenance order to cost center. Will that be happen only upon settlement of order (T-code KO8G) or Closing the Order (T-code CO99)? And what will happen upon TECO?

Regards,

Abraham

[Former Member]

You are right.

KO88 is the only way you can do the actual settlement.

TECO as name implies, is technical completion of the order and associated notifications.

hence you will be able to do KO88 even after TECO.

JP

[Former Member]

What about the IW41 or IW42 at Completion Confirmation?

[Former Member]

IW41 & IW42 are used for confirming the task/operation with the time. This will accrue the cost of internal operation to the order.

[Former Member]

I see.. Should we do the IW41/ IW42 first before TECO or rather before order closing via CO99?

[Former Member]

As said by riaz Maner,i dont think actual costs get posted after settlement

Planned costs are posted after the realease of the order

Actual Costs are posted after the confirmations(goods issue,service entry sheet,time confirmations etc.,)

Costs are settled in the settlement to the respective cost center mentioned(reference technical object or work center cost center).these costs are credited to order and debited from the costcenter

[virendra_pal]

All debits to the orders can be posted once the order is released.

This includes time, material consumed, material procured etc.

Once the order is completed the debits (costs) can be settled as required

Please read SAP help for more details

The man hour rate is stored in activity pricing for combination of activity type / cost centre. The cost centre is stored in the work centre to provide the link

[Former Member]

Abraham,

In PM Cost which is @ PM order , after TECO , Order has to settle (KO88) , Now Cost is @ Order After settlement depends on settlement rule cost post against cost centre of work centre ( Company ) or Cost centre of reference object. and then Cost on PM order will be Zero , now u can CLSD that order with Zero value.

Hope this will help you.

Riyaj