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Former Member

Secondary Cost Element Configuration for Plant Maintenance Order

Dear Expats

We want to configure the Secondary cost element properly for PM order.

Required process

1) Secondary cost element is created

2) Activity type and rate maintained and link with Secondary cost element

3) Secondary Cost Element is link with Primary cost element Salary ???

4) When they confirm the activity in PM

in Cost Center impact will be during PM order confirmation

Primary cost element Salary Credit and ( Cost Center - 9000080)

Secondary Cost element debit (against PM order - 8000888)

Means Cost is transfer from Cost Center to PM order through secondary cost element.

When PM order is settle than

Secondary Cost element Credit (against PM order - 8000888)

Primary cost element Salary Credit and ( Cost Center - 9000070 - which is link with PM order through functional location)

Is my under standing is ok. if not pls give proper way.

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3 Answers

  • Best Answer
    Jan 23, 2014 at 05:30 AM

    Hi Tarek,


    Primary cost element values (Salaries in your case) will be posted to cost center debit side from direct FI postings. When you confirm activity (Labour) against an order, Salaries from debit side of cost center will be converted into secondary cost element – Labour.


    Here, entry would be, Dr. Order

    Cr. Cost Center


    Later, when you settle the PM order, based on settlement profile, either it will settle through the same cost element or a settlement cost elment.


    Entry would be:


    Dr. Cost Center

    Cr. Order



    BR, Srinivas Salpala

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    • Nr Tk Ajay Maheshwari SAP Trainer

      Hello,

      I have similar situation.

      Created Activity type

      Created secondary cost element for those activity types

      also, create KP26 line items for 0,00 value.

      Now when SD does billing document there is message no KI222 Cost center XXX/XXX doesn't exist on date.

      Please advice.

  • avatar image
    Former Member
    Jan 23, 2014 at 05:27 AM

    Hi Tarek

    I think you should go through following links to understand the process of Cost Center planning and Activity Rate Calculation. Hope many of your doubts are cleared there

    5 Steps to Understanding Product Costing- Part 1 Cost Center Planning

    5 Steps to Understanding Product Costing- Part 2 Activity Rate Calculation

    Hope it helps

    To reply on your query, yes your process looks fine except that I dont understand why you again want to settle the costs to salary cost element.

    Regards

    Mustafa Sakerwala

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    Former Member
    Jan 23, 2014 at 05:47 AM

    Hi Tarek,

    The explanation provided by Srinivas is very good.

    Coming to your queries (that you called as process), we no where link secondary cost element to primary cost element.

    So, when we see cost center report, we find the salaries debited as the result of the FI posting, but where as for credit we see the secondary cost element as the result of the confirmation of activities against the maintenance order (no credit happens with the primary cost element i.e. salaries). The entry will be .....

    Dr Maintenance order with secondary CE

    Cr Cost center with secondary CE

    Same way at the time of settlement also, there won't be any postings carried with primary CE. Entry will be..

    Dr Cost center with secondary CE (that may be the same secondary CE used for confirmation or settlement CE used)

    Cr Maintenance order with secondary CE

    Regards...

    Jose

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