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Settlement - statistical to cost center

Former Member
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Dear all, hope you can share your wisdom

We implemented cost center accounting to reflect cost responsibility perspective, so cost center structure is the same as the organizational chart structure with a cost center per manager.

We are starting to use PM orders, and we want the order to be settled to maintenance cost center, which is in charge of the costs. But we also want a profitability perspective so we want the PM order costs to also be sent (statistically I suppose) to a secondary cost element in another cost center, the one where the maintenance activity occurred.

Any ideas on how to get this done? Points will be awarded!

Thanks,

Katia

Accepted Solutions (1)

Accepted Solutions (1)

kamalkumar_biswas2
Active Contributor
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Hi Katia

   Your requirement is to post the PM cost also to PC for profitability perspective...

   1. If you have Profit center accounting active then you can directly link your Profit segment as a receiver where data will post statistically at the time of settlement   of PM order.

   2. You can't use another CC as a statistical receiver where your actual receiver is CC  and this is not right way. You should post the data to Prft seg during settlement.

   So..if you require any thing more pl revert back

Former Member
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Dear Kamal, thanks for your reply. You got the requirement right - the idea is to have 2 perspectives, ones for cost responsibility and one for profitability.

I understood we have to set up the profit segment as a receiver - where is this done? tcode?

thanks!

kamalkumar_biswas2
Active Contributor
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Hi

I think already Prft Center accounting is active and you have defined all settings of PC in your system

You have also defined PC to CC master data

Under the above pre-requisite...

When you define settlement rules at the time of order creation in IW31, you can define protf seg as an additional assignment

Settlement rules > CCtr > click on line item CCtr > settlement rules distribution > Settlement receiver > more

Former Member
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Thank you again.. following the path you mention we don't see any means to include an additional assignment to profit segment - the options we have are:

- asset

- trans. type

- cost center

- order

does that mean we need to edit the settlement rule?

*waiting eagerly*

Katia

kamalkumar_biswas2
Active Contributor
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Hi

Yes...you have to change the settlement rules ...

suppose your receiver in settlement rule is CCtr...click on that it will go to screen where you will find "More" and if you click on that will find addition assignment

Former Member
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Kamal, thank you so much for your valuable input.

I found that I have to edit the settlement profile, to enable "Profit Segment" as a valid receiver. Do I also have to tick the "Variances to Costing-Based PA" checkbox at the indicators page?

I will be able to perform settlement tests on Monday to see if I get the desired result, and I'll let you know!

Katia

Answers (4)

Answers (4)

Former Member
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Guys, you have been most helpful indeed.

I have decide to dwell a bit more on how to best approach the company's requirement, testing your suggestions to make a more mature decision.

I will reply back with the outcome, I very much appreciate your valuable input. The approaches I will be testing are:

1. posting to profit segment and cost center

2. posting to internal order and cost center

3. using standard posting to cost center and follow-up using reporting tools

It should take some time now with the year-end proceedings but I'll let you know.

katia

Former Member
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Hello Katia,

What I understood is,

You are collecting the maintenance cost in one order

and

you want the cost to record in two cost centers 1) one who consumed the resource 2) one who done the work--maintenance activity occured (cost center - statistically)

You mention the statistical cost center in order so it will record all the cost recorded in order but not with secondary cost element with the same cost element of order

Then you settle the order cost to the cost center you want (original posting not statistical) here again you can settle with the same cost element are with settlement cost element

Thanks and Regards

V.S.Natarajan

Former Member
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Hi Katia,

Your requirement is not to post any actual cost in the requesting cost center in CO.

Instead you would like to post the maintenance cost in the requesting Cost center statistically.

Statistical postings to a cost center are possible provided there is an Actual Cost assignment in the posting. In your case, this object would be an internal order i presume.

One scenario would be to

1- settle the maintenance orders both :

- on an "Actual" internal order MAINTENANCE.

- on a cost center. in that case, the posting on the cost center will be statistical only.

This is possible Goto/Details in the settlement rules of each maintenance order.

2- settle the internal order MAINTENANCE the cost center MAINTENANCE.

This is not very lean (manual maintenace of settlement rules is not nice) and not the standard process (as stated previously by Paulo), but that would meet your requirements it seems.

Alternatively i would just maintain the field (Requesting) Cost Center ILOA-KOSTL in the maintenance order and usr the reporting functionalities in PM module.

Kind regards

Paulo_Vitoriano
Active Contributor
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Hi Katia,

You cannot settle twice to the same type of object (Cost Center), even if one is actual and one statistical.  Also Cost Centers executing the work should get a cost reduction (or revenue), while you suggest to settle it as a cost.

If you need just reporting perspective you can use Responsible Cost Center field in the PM order master record (Additional Data tab).

The standard flow is to use Work Centers that are linked to Cost Centers and perform the work, while you will settle to departments that are "customers" for the maintenance.  By confirming hours on PM order you will allocate the cost from Service Providers to PM orders and next to Service receivers (after settlement).

Regards,

Paulo

Former Member
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Paulo, thanks for your reply.

I understand how the normal flow of costs should work, however, the business is not at that point yet. The client cost center manager cannot be held responsible for these settled costs, as he does not manage them.

What Kamal mentions above is very much the scenario we need: the managing department, which is the one providing services, has to answer for costs incurred, whereas the client department should be charged with the bill only at a profitability perspective.

How to get this done is the challenge, but I think we're getting somewhere.

Katia

Paulo_Vitoriano
Active Contributor
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Oi Katia,

I am afraid you do not understand what Kamal is saying, neither I do.  Implementing COPA is not an option for you.  You can address it with statistical postings, but it should be quite a different setup.

Cumprimentos,

Paulo

kamalkumar_biswas2
Active Contributor
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Hi Katia

    No no..don't be afraid ..Paulo just assuring you the concept...test it in your Testing/Q server and if you find it's working as per your requirement go ahead...

    If any other help required we are here to share our knowledge..

    Best of luck