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Issue with calculation of planned cost.

Former Member
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Hi,

Can anybody explain me the s_alr_87013127 report. I am going to implement the PP orders process in plant.

After creating and releasing the order the planned price in the report is displayed as per below

In the above screen shot SMH cost is getting update in plan cost debit and material cost maintained as per in material master is getting update in plan cost credit. Please explain me why it is happening so that further analysis can be done.

The material type is HALB and it is not going to be sale to customer. The settlement category against the order is also maintained as MAT as per below screen shot.

Hence, the order is not settled through KO08 instead of that it is direct issue from stock through MVT Type 901 and against that cost is booked to its respective cost center as per below screen shot.

Please explain me why only plan credit cost is captured instead of considering the both plan credit & debit cost.

Regards,

Samrat

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi Owen,

SMH stands for standard man hours i.e. basically the labour cost activity which is calculated under work center.

Regards,

Samrat

Former Member
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Hi Owen,

Thanks for reply. My problem is that i am producing a semifinished material but not selling it and even it have no BOM & routing. Producing and capturing all its material cost and  SMH cost in plan cost, then issuing it from Sloc. & settling its cost to cost center through 901 mvt. type.

Hence, when i am going to settle it then only the material cost is getting settle in the cost center. Also, please explain me that is it a standard scenario where always plan cost credit will considered material cost & SMH cost will considered as plan cost debit.

As per my study the calculation of plan cost credit & plan cost debit is as per below.

Plan Cost Credit = Actual qty. X Standard price

Plan Cost Debit = Plan qty. X SMH hour booked in routing X Activity rate

Please explain

Regards,

Samrat

OwenLiu
Product and Topic Expert
Product and Topic Expert
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I'm sorry, may I know what is SMH for?

OwenLiu
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Samrat,

The plan cost debits are calculated by BOM and routing and other overhead costs and so on. For those you can consider all the inputs to the order. The plan credits are calculated according to the standard price of the order material for which you can consider them for order goods receipt.

I'm still not very clear about your question...

Best Regards,

Owen