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PM Order Confirmation create actual posting in Cost Center, with CE type 43

Former Member
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Dear Expert,

I would like to know the business flow of Plant Maintenance that impacts cost center reporting.

During PM order confirmation, it will create an actual posting in Cost Center from Cost Center Reporting (No FI posting), say CC Operation, with Cost Element type: 43, which is attached with the activity type of Labor Cost assigned the the PM module.

Example: Cost Center: CC Operation, Cost Element: 840001 (CE type: 43), Amount: USD 100- (negative sign)

My Question:

How does this posting (currently is in controlling only) in cost center Operation with Cost Element type: 43 be reflected in my FI reporting?

Let say there is an FI posting of labor cost in CC Operation, amount USD 100, then from Cost Center Reporting, it actually offset both amounts, and this cost center become 0 in amount.

Kindly advise the concept of Plant Maintenance.

This seems like same with the concept of KB21N.

Thanks.

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Answers (3)

Answers (3)

Former Member
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Hi Chin,

Did you get some clarity about your issue now or still have doubts?

Reg

Karthikeyan G

varshal_kachole3
Active Contributor
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Hi,

Did you try the Transaction "FAGLCOFITRNSFRCODOCs"?

Hope it helps!

Thank you and Regards,

Varshal Kachole

Former Member
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Hi,

Whenever PM order is confirmed with activities, normal system behavior is it will debit that respective Order and credit the cost center with activity Value.(i.e. that is the reason why you find cost center with Negative sign because of credit).

System will pick up this cost center from the work center master data in which it is attached. While confirmation of activities, there will be only entry in co module and there should not be any entry in FI Module. Because in FI module actual entry will get posted for labour (while processing the salary) and for power (while booking Electricity charges).

If entry gets posted in CO module also, then it will lead to duplication of entries in FI Module. This is the case not only with PM order but also with production order or process order.

Regards

Karthikeyan G

Former Member
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Hi Karthikeyan,

My Further question:

What do you mean "debit that respective Order and credit the cost center" for PM order is confirmed with activities?

My second question is .. Let say we have an FI posting to that particular cost center (charged t0 that cost center) ... what does this mean?

The total value in the cost center will be add / minus.

From Cost center perspective, what does this mean?

Thanks.

Former Member
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Answer for first question:

if you analyze your order in 'costs' tab in IW33 you will find that same amount in positive value (debit)which found in negative value in cost center (i.e. credit) meaning that  activity cost is posted with reference to that particular order. This is only at CO level 

for second one:

when you make FI posting to same cost center (CC) which will come as debit to that CC, difference between this plus/minus is under absorption of cost or over absorption of cost for that particular CC. This is both at FI and CO level.

Hope this clarifies you.

Karthikeyan G

Former Member
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Do you still have doubt or got some clarity..

Karthikeyan G

Former Member
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Hi Karthikeyan,

My issue and concern is similar to the issue raised as follows:

Secondary Cost Element Configuration for Plant Maintenance Order

http://scn.sap.com/thread/3488730

In this forum, it says that the posting in CO, during PM order confirmation is ...

+10 for Order and -10 for cost center A

After PM Order settlement:

-10 for Order and +10 for cost center A

From the cost center and PM Order CO report, they are 0 in value ...

Is this the correct way?

Thanks,

-Chin

Former Member
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Hi,

Yes. Now your understanding is correct. As mentioned above during PM order Confirmation, Order will be debited (10)and cost center will be credited (-10). This cost center will be picked up by system based on work center master.

Then Again at the time of PM order settlement, Order will be credited and debit i.e. Settlement will go to either Cost center (this cost center can be different from cost center which got credited earlier) or any Receiver depending up on the Settlement rule defined in order type. You can change the settlement rule in order itself as well.

The bottom line is cost incurred in the PM order can be settled to various receivers which can be a Cost center, or GL account or Fixed Asset or PA depending up on the requirement. But Generally  it will be settled to a cost center.

Hope this will make you clear. Let me know if you have further queries.