Internal Processing activity

[Former Member]

Hi,

Is there any way we can plan cost for internal processing activity manually? Our requirement is, there are different location employees booking time on same activity. Since the cost rate is different for different locations, planned cost is not so accurate. Right now we are planning cost with reference to activity type and planned hours. Is there any different way to solve this problem? We don't want to create separate activity for different locations.

Pramod

[ravi_ekambaram · Accepted solution]

Hi Pramod,

This is more like resource based costing what we do in PPM Projects, It would be better if you create activity elements for each location under the internal processing activity and assign the activity elements to different employees.

Regards,

Ravi

[ravi_ekambaram]

Hi Pramod,

The details provided by Ken would have clarified your query. It is basically you create 2 activity elements for each of the location(USA & China) under the internal processing activity.

You can also refer the below post also for further clarifications.

http://scn.sap.com/message/7141544

Regards,

Ravi

[Former Member]

Thank you all for your suggestions

We may use activity elements. There are some other constraints because of customization but I am just making this thread as completed.

Regards,

Pramod

[Former Member]

You can have SAP do the calculation for you in 2 ways:  1.   Use Network activity elements, or 2. Use Unit costing.

1.  Under the Network Activity create a series of Network Activity Elements.  NWA elements are very similar to network activities except they adopt the dates of the NWA.

Plan your different Activity Type/Work Center combinations (locations) with correct work quantities on each NWA element.  This will give you the exact number you wish.  Using NWA elements allows you to use them for workforce planning and to track actual charges agianst them.

OR

2.  Make the network activity a General Cost activity (key PS03) and click on the calculator icon next to the value.  On the Unit Costing screen you can list the cost center/activity type/qualtity combinations.  SAP will do the math for you.

[former_member209919]

Hi,

Yes, the rate of the activity type is planned on KP26 transaction by cost center, then you can have different planned costs for the same activity and different cost centers.

Regards

[Former Member]

Thanks Clara and Ravi for your reply,

Clara, I am failing to understand your suggestion. Though we can plan activity type for different cost center, how we can plan different rates with same activity. I can plan cost with respect to only one activity type so the only rate.

Ravi, I am not sure about act. elements. Can you please elaborate more with reference to below mentioned example.

e.g. total planned hours 100 = 50 hr (USA resource) + 50 hr (China Resources)

Total planned cost $6500 = 5000 (50 x $100) + 1500 (50 x $30)

With this example, how can I plan 6500 cost and 100 hours to one internal processing activity.

Pramod

[Former Member]

Hi,

You have two options here, one is create activity elements and assign the work center. In work center you must be aligning the Cost center and Activity type.

1. create a two activity element for USA and China.

2. Define Activity types for each location wise resource with different rates (activity types)

3. Assign the Work center and for each activity element. Here you need to have set up multiple WCs.

4. To see the actual hours, you need to book your time at Activity element level instead of network activity level.

all the planned cost will roll up at activity level and also at WBS level also.

Thanks,

Sudhakar