Activity based Costing

[Former Member]

Dear PM Guys,

I never done activity based costing through WC in previous proj.As a PM guy what is exactly my part and CO guy part in Customizing and while assigning of one or more activity types in Maint.Work center.If there is any detailed note .I request you guys to send it to my mail ISWARI_BABU@YAHOO.COM.Thanks in advance.

Regards

ISWARI

[Former Member]

Mr Thiyagarajan & Mr Vinay,

This may be my last query in this particular thread.

If I assign 2 activities to one cost center in KP26 and assign only one activity in workcenter with formula sap008(costing tab bottom fields),then also i can able to get labour cost for both activity if i use in operation of MO which contains the particular WC.

Eg

In KP26

Activity-TECH and Activity-TECHHELPER assigned to CC-20000

In IR02

WC-INTECH

Costing tab

CC-20000

TECH and SAP008 is assigned

In this condition Iam able to use both activity types in Operations of MO and in cost tab of MO, iam getting cost of TECH hours and TECHHELPER hours.

Is it correct.

Regards

ISWARI

[former_member187991]

hi iswari

what you are doing is absolutely correct,if you can able to calculate cost for both activity then it is fine.kindly make an cycle to findout whether cost is debited to the cost element specified in the activity

regards

thyagarajan

[Former Member]

Hi Thiyagarajan & Vinay,

I got it around 75% based on yours input .The issue is

My standard value key is SAP0,CAPACITIES tab other formula is SAP008,SCHEDULING tab other formula is SAP004 .

In costing tab if I assign ACTIVITY and FORMULA in bottom(ie single entry)

its working fine and its reflecting in the cost tab of MO.

Eg Activity-TECH(Technician) and Formula SAP008

The requirement is I want to specify 2 activity type in the same workcenter and while creating order,the user will select the activity type which they want.

(Eg ACTIVITY -TECH and TECHHELPER and both are assigned to same cost center and cost element and the diff is only rate/hour)

How to do this?pl help

regards

ISWARI

[former_member187991]

hi iswari

yes you can create 2 activity for one work center,but the problem is it will not be as selectable , it will ask to specify the work for the acticity( like in production order we specfiy as setup,labour and machine) .

for acheiving this you have to create standard values consist of your parameters in customization ( for parameter OP7B and standard value OIZ2) and specify in the respective work center and also formulas will be different. if you have PP consultant kindly consult with him regarding the workcenter

And plan for that activity

regards

thyagarajan

[Former Member]

Hi Iswari........

What Thyagrajan has written is absolutely correct....just follow that & consult ur PP consultant for help..........he will be able to clear you the things on screen..........

If clear.......close the thread..........

Regards...........

[Former Member]

Hi Iswari........

Is you question, most of the portion is related with FICO......

You have to first decide what are the activity cost you hvae to capture........mostly it is Labour Hour rate, Machine Hour rate, Set Up Time, but from PM point of view it is only Labour Cost. Then for these Activity types, your finance guy will create a Cost element which he will assign to your Activity Type & will give hour rate for this Activity.

After this you have to asssign this Activity type to your Work Center in Costing tab.......other than this you have to remember that Formula Key u r using is SAP008 for PM, here you can put the formula but generally in PM it is used as standard.

Hope this will help..........

Regards............

[former_member187991]

hi iswari

first create Activity type ( specify the cost element) and cost center

Plan for activity and cost center( KP26)

Create forumla and dependent parametes( customization)

Create work center( here you have to specify the activity and cost center and

formula)

specify the work center in equipment

then if you create the order fo the equipment cost will be calculated

regards

thyagarajan