Cost Flow is Work Order - Responsible Cost Center

[Former Member]

Hi,

I have a question regarding the cost-flow in a maintenance work order in a scenario where the costs in consideration are internal labor costs.

I am attempting to explain the scenario in our system

(1)Every equipment/FL record has a cost center associated.

(2)When a maintenance work order is created (iw31) for an equipment, the settlement rule gets the cost center of this particular equipment

(3)The work order also has a 'responsible cost center' that is (in my opinion) getting populated from the costing tab of the work center.

(4)When an employee does time confirmation for internal labor(iw44), the order gets updated with the actual costs.(costs are based on the number of hours * internal_labour activity rate)

(5)On settlement of the work order (ko88) the costs get transferred to the equipment cost center (based on the settlement rule).

So far I hope all is fine.

Question :

(1)What is the role of the 'responsible cost center' ?

Is it standard SAP that the home-cost-center of the person-who-confirmed-time (plumber/electrician) is equal to the responsible-cost-center ??

(2)What costs hit the resposible cost center ?? (How is it/can it be typically used?)

(3)Please explain usage/role of responsible cost center from the 'person_doing_time_confirmation' prespective?

Please explain..

Thanks,

KF

[former_member187991 · Accepted solution]

hi

As you said responsible cost center in most cases would be the cost center for the persons involved ,you can also create an external workcenter and cost center for doing external operation.

since your planning activity only based on the activity and respondible cost center only.

for detailed usage of responsible cost center kdinly refer here

http://help.sap.com/saphelp_46c/helpdata/en/5b/ae39d04b8611d182ba0000e829fbfe/content.htm

regards

thyagarajan

[Former Member · Accepted solution]

Thanks for your replies..Still a bit unclear

In my scenario,

(1)Responsible cost center = cost center from costing tab of main work center

(2)Main work center = work center on every operation in the work order

(3)Settlement rule cost center = cost center of equipment/FL that is repaired

(4)Technician who does the repair work (internal labor) has cost center lets call it..(home-cost-center of technician)

(5) The home-cost-center of technician NOT = cost center on costing tab of the work center

So,

When time confirmation is done, the costs get subtracted from the responsible cost center (cost center in main work center) and get added to the work order

On Settlement, the costs get added to the equipment/FL cost center and get subtracted from the work order.

Final Result = Costs got subtracted from responsible cost center and got added to equipment/FL cost center

Question :

(1)Should the costs get subtracted from responsible cost center?

OR

(2)Should the costs be subtracted from the home cost center of the technician who does the work ?

OR

(3)Should the home_cost_center = cost center in workcenter?

Please advice

KF

[Former Member · Accepted solution]

Dear

You are explained all scanario is correct.In all business scanario the settlement will goes to Location of Equip/FL cost account assignment cost centers.

If u wants to settle against the responsible cost center what will be the requirement for your business? I think better discuss with CO team.

But if u are wish to setlle against the responsible cost center you can do, while settlement rule creation at order you can define. This will be answer for your all questions

Thenna

[Former Member · Accepted solution]

Hello,

On time confirmation by work center, the maintenance order get an debit for cost of maintenance labor. For this debit , the cost center assigned to work center gets an credit( which may be an Maintenance work center).

The maintenance work center gets the debit for the salary expenses of the technicians.he final figure of + & - entries of maintenance cost center is distributd over all the PRD orders .

Hope this explains ur query.

Thanks

[Former Member · Accepted solution]

Vinay, Thenna,

Thanks for your respone.

Vinay, you explained that on time confirmation the cost center in the maintenance work center (which appears as the responsible cost center in the work order), gets credited with the appropriate amount. (Amount would depend on cost center & activity rate set).

Question : Is this standard SAP behavior that the responsible cost center (maintenance work centers cost center), gets credited with the amount...OR is it configured somewhere in PM or FI/CO ?.

Is it possible to have the amount credited to the cost center of the technician who actually does the work (instead of crediting it to the work centers cost center to which this technician belongs).

Please let me know

KF

(Note: Thenna, I do want to settle the costs to the EQ/FL cost center...I do not want to change that...)

[Former Member · Accepted solution]

Hi King

The maintenance work center gets crediting the activity cost while doing the confirmation.

This will be SAP standard as per standard business scanario in industries.

Please note that this will working thro activity cost allocation against your cost center at KP26 T code.

If you want to get the crediting of costs for technicain work center, you need to assign the activity at KP 26 against thier cost center.

Then you have to put the particular work center against the Operations. Then while confirmation you able to get the same.

But these all costs you can settle partially to differecnt costcenters as % wise or you can put the settlement rule as only one cost objects

[Former Member]

Dear

The work center is playing role with cost centers. We find the two cost centers. 1. Location cost centers- This is come from location work center(where your equipment is located)

2. Resp work center (cost center) which is coming thro the who will be response to do the maintenance work.

In costing process i will work in two ways.

The expenses are settled against the location cost center(it means that getting credit(dumping) the costs)

The same way that orders cost budget are deducted from the respective cost center.

The activites also created at respective cost center , since they are doing the job. that particular activities with unit of hours will be booked thro order confirmation. that costs will go to order and the location cost center will acts as settlement receiver .

Time confirmations sending the activity actuals costs thro responsible cost center to location cost cnters

You can find these all at various codes like KKBC_ORD, ksbt, KSB1

the responsible cost center will get the profits thro thier profit center

tHENNA

[Former Member]

hi,

As u know, the activity type in Work Center is used to calculate the actual labour cost of that particular work center based on IW41.

Once IW41 is done, actual cost is calculated and will be TEMPERORILY at Responsible Cost Center (of W/C).

So, after time confirmation cost/expenses will be assigned against the Order (W/C cost center)

While carrying out KO88 (settlement), the actual cost of Order will be setlled/assigned/debitted against the Cost Center of Technical Object.

Sam