Floc Cost centers vs Cost center in work center

[nureya]

Hello guys,

Good Morning.

I am having some issues in understanding the concept of cost centers in Flocs.

When i go into the Floc master data (organization tab) there is cost center XXXXXX, but when i go into the work center's cost center in organization tab (IN THE SAME FLOC), i am seeing different cost center YYYYYY and activity type.

1) I was assuming the cost center in the organization tab (floc master) will be same as the cost center in the Workcenter and we settle the order to that cost center. But i find out we are settling our work orders to the cost center in the FLOC org tab and not to the cost center of the the work center. Can you explain me what difference does it make?

2) we have seven level flocs and all levels have different cost center in the org tab. Why is that?

Nureya

[Former Member · Accepted solution]

Hi Nureya,

                  in the screen shot you can see that you have a Cost Center in the Account Assignment TAB, that is the soct center to which actually settlement is done at the time of settlement.

Account assignment itself means that this is the cost will be assigned to the same.

Cost center in work center is used to calculate the manpower cost  (also machine cost in PP Module) with referece to activity type maintained in Controlling (KP26).

Hope it helps you.

Regards,

Yawar Khan

[nureya · Accepted solution]

Yawar,

1) What doyou mean by account assignment tab? do you mean org tab in Floc master?

2) Sorry to ask basic question..but what is man power cost. I thought when we create a work order , the labor +material + overhead cost are all settled in that order to the corresponding cost center (which is the Floc cost center)...Can you throw some light about this?

Thanks,

Nureya    

[Former Member · Accepted solution]

Hi,

Maintenance order is a basic cost collector of the maintenance cost. The cost can be a planned cost or actual cost.

The various costs that can be collected are like Spares cost, Services cost, labour cost, Overhead cost etc. depends on the business requirement.

The spares cost is derived from the material master, the price of the material

The Services cost is derived from the Service netry sheet, service cost for the service performed

The labour cost shall be derived based on the discipline and per hour rate. The discipline is linked with the discipline cost center and a CO (Controlling) activity type is created for each craft of labour and the per hour rate also be created.

All the above costs are collected in the maintenance order spent on maintenance. However, this maintenance cost has been incurred to produce certain production. Thats the reason the maintenance cost is finally settled to the facility or functional location which is a facility cost center.

So discipline cost center is used only to derive the labour cost and can't be used for settlement.

Similarly functional location cost center is used only for settlement and can't be used for cost derivation

Regards,

Raj

[Former Member · Accepted solution]

hi Nureya, cost is settled to the technical object cost center if opted either on equipment's or floc's.

this is purely organization decision to decide about floc's cost center assignment. so no wonder that your seven level flocs and all levels have different cost center in the org tab.

cost center can be same for all or it can be different also as per the company decision.

it will not change any business process, it is only to tell the system to settle the cost on particual cost center.

hope it helps.

Regards

Mohammad.