Planned Value in sap pm order

[piyush_potey]

Hello All,

Please explain me from where the planned value updates in refurbishment order in sap pm.

Thanks,

Regards,

piyush

[rakesh_mane]

Hello

Please refer the below thread

http://scn.sap.com/thread/3516638

Br

Rakesh

[sebastian_lenartowicz]

Greetings Piyush,

Generally, the planned cost for a refurbishment order will be calculated in a similar manner to any PM Order. The difference is that you have the "damaged" and "refurbished" Material, which can be at different values (via split valuation):

Value of "damaged" material + Internal labour cost from Operation activities + External cost from external Operations + Cost of any additional spare materials consumed - Value of "refurbished" material.

Therefore, if the value of refurbished material is high, you might get a negative planned cost.

At Refurbishment Order settlement, the cost is settled to adjust the value of the "refurbished" material stock.

[piyush_potey]

Hello Sebastian,

Thanks for your reply.

I have created one refurbishment order for material and planned cost updated for external services and for material. For external services cost is updating from kp26 ( cost center and activity type) but the material cost is also updating even though there is no cost defined in material master in accounting tab.

Also explain the split valuation concept.

Thanks in advance !!!

Regards,

Piyush

[sebastian_lenartowicz]

Split Valuation means that you can define various prices for a Material in the master data (Accounting1 tab) dependent on a certain categorization - Valuation Type. When you have set the Valuation Category for a material to 'C', you may create additional views in Accounting for the material, with a different price for each Valuation Type, e.g.

C1 - new part - €1000 (new purchased value)

C2 - damaged part - €10 (scrap value)

C3 - refurbished part -  €700 (value based on the cost of refurbishment)

Then with the Refurbishment Order you can take a C2 material & "convert" it to C3, adjusting the price & stock value for your refurbished parts.

Learn more about the Split Valuation concept at SAP Help & SCN:

Split Valuation - MM - Material Price Change (MM-IV-MP) - SAP Library

As for the other question, you are probably seeing the cost of the material you are going to refurbish, from the Order header (what is your price control & price for this material in MM03?)