PM Order Actual activity cost

[Former Member]

Hi,

Like to know what is the best way to book the actual Activity cost on the Plant maintenance order.

As per the client requirement general maintenance or preventive order, Activity cost is book with reference to confirmation. as the activity cost flows through secondary cost element.

when the order is settled the cost is transferred to Cost center, at the same time when you check the the actual cost on the cost center it flows through secondary cost element.

So query is as the activity coat either hours or any other units rate which is maintained KP26. How best the business can book the actual activity cost so that is can hit the General ledger with reference to the cost center. How does the actual activity cost should be posted or booked to reflect the general ledger.

With regards,

Babu K

[Former Member]

Hi Babu,

The one way to reflect the activity cost to general ledger is to carry out actual activity rate calculation and revaluate the order.

To explain it further, If you do planning for activity and cost for a cost center at the beginning of the month and allow the system to calculate the activity rate, then it will be a planned activity rate which will be used for absorbing the cost to cost center.

Now during the month, actual figures for cost (postings from FI ) and activity takes place which may not match with the planned figures. So , at the end of the month, you again calculate the actual activity rate which is based on actual postings of cost and activity to the cost center.This itself means that activity rate is reflecting the postings done to General ledger.

You will not come to know the actual activity rate unless the postings from FI and actual confirmation on order takes place.

Hope this clarifies your query.

regards,

Makrand

[Former Member]

Hi ,

I totally under stand on the production order, what ever you have written is correct. But with reference to the PM order ...Plant maintenance order. How this is done.

With regards,

babu

[former_member312411]

Babu,

May be you can try out below flow

1. Have the planned labour maintenance activity rate in the Maintenance Cost Center

2. Confirm the actual hours for the maintenance for each and every PM order worked upon. This would debit the order with planned rate * actual Quantity and credit the Maintenance cost center

3. Settle the PM orders to benefit receiving cost centers.

4. The actual primary costs for maintenance would be posted to Maintenance cost center as and when incurred and under/over absorbed costs in this cost center can be again allocated to respective benefit receiving cost centers on basis of maintenance labour hours in the Period End.

Thanks.