on 06-28-2015 2:22 PM
Dear Experts,
We are trying to procure Capex items through Plant Maintenance Corrective WOs.We will settle the Cost on Project WBS element.I would like to know your expert opinion whether this is a right way or not.If it is wrong please guide the correct way.Please focus the disadvantages of procurement of CAPEX items through Corrective Maintenance Work Orders,
Thank You,
With Best Regards,
Raj
Raj,
There are many ways to manage Capex projects in SAP - including using PM/CS orders, especially if you want to record work against equipment/flocs. If you do use PM/CS orders then it may be worth considering a specific order type for this type of work.
However I would suggest you first talk to you Finance Team first to ensure that you adopt the correct approach for your business.
PeteA
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Dear All,
Thanks for your valuable suggestions.Finance team have given the CAPEX Cost settlement reciever.And even by following Corrective Maintenance WO process we can settle the cost on appropriate Cost Center.As Maintenance team is struggling to set the appropriate business process to procure the CAPEX items, i would like to know the Best in class practices adopted across the industry.I have the following questions :
1.After the project handover if Maintenance team need some CAPEX Items what is the best way to procurement.We are try to procure CAPEX through Corrective WOs process so that maintenance team track the status of CAPEX items and book the hours spend on installing the equipment.Any how this cost will be not captured against the corrective Maintenance because the Cost settlement receiver will be different than the regular maintenance settlement receiver.
Appreciate your expert opinion on this.How most of the Industry manage their CAPEX items procurement.
Regards,
Raj
Raj,
I'm glad to hear you have a solution.
One thing to bear in mind when you use existing "Corrective WOs" is that you need to ensure you do not mix Capex and non-Capex work as this can make the settlement process a little more complicated (though not impossible). Future data selection/reporting using this method may be complicated.
Which is why some companies have a specific order type for Capex work, which simpifies data selection/reporting.
PeteA
Hello Raj,
My opinion
1. According to me this is not a very popular practice.
2. Usual practice of procuring Capital items does not touch PM (It is an MM or PS activity). Once the Assets are received they figure in PM as Equipments/Functional locations.
3. SAP gives freedom to have your own practices.
4. About the disadvantages: Any new practice is implemented to have some advantages. In the matters like this only one agency will be able to tell you the disadvantages and can even stop you to do so if any disadvantage is there. That is your Finance. If you are acting in the approved lines of your Finance department then what disadvantage can be there?
Let's hear from experts in this area.
Regards
KJogeswaraRao
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