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How do you allocate activity credits from an overhead cost center to a production cost center?

We allocate 100% of our overhead costs from our maintenance cost center to our production cost center(s). We also receive labor activity credits (using activity MNTNOR) on the maintenance cost center due to plant maintenance work order labor confirmations. We plan our maintenance cost center cost elements against an overhead activity type (named OVHD). We allocate all of the primary costs using indirect activity allocations on activity type OVHD.

After we perform the actual activity allocation, there is a balance remaining equal to the total labor activity credits.

How do you get this credit balance to allocate? The goal is to fully allocate the maintenance cost center.

Thanks

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  • Posted on May 03, 2014 at 03:49 AM

    Hi Matt

    1. You must calculate actual activity price for the maintenance CC and revaluate the maintenace orders. That will make the balance as zero in the CC

    2. Now settle the maintenance orders to production CC or anywhere you want

    Br. Ajay M

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  • Posted on May 02, 2014 at 09:27 PM

    Hi Matt. Your question dont give all the details needed to give you an advice.

    I recommend you read the following OSS, this explain possible causes of a remaining balance in a cost center, and the service flow.

    597159 - Price calculation seems to calculate incorrect values

    156563 - Settlement after activity allocation/revaluation

    Arturo.

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  • author's profile photo Former Member
    Former Member
    Posted on May 08, 2014 at 11:40 PM

    I have read the SAP notes above and they don't seem to apply.

    We settle the maintenance orders nightly and don't start the month end alllocations until everything is settled for the month. After we execute the overhead allocation (KSC5), we then execute the cost splitting job (KSS2) and then execute the actual activity allocations (KSII).

    I am not sure if I understand what "revaluate" the maintenance orders means. We have settled all of the orders in the month before we execute the allocation.

    Still going through testing on our own and trying to understand how to get this to work. Thanks.

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    • Hi Matt.

      If you don't re-valuate your PM Orders, the Sender Cost Center of the Activity is also don't re-valuated, so the Balance isn't '0'.

      I think Your Flow must be:

      1. KSC5: Indirect activity allocation. At this time, you post activities at plan cost to the PM Orders. At this time Activities Credit your Cost Center. You can see the efect in report S_ALR_87013611

      2. KSS2 / KSII: Calculate the Actual Activity Rate ($/h), based on Accounts that debit the Cost Center, and the qty of hours reported. Do you calculate the rate manually in order to confirm is correct? Report KSBT

      3. KON2: You re-valuate the activities charged to PM Orders, using the actual rate. At this time the sender cost center are also re-valuated, have balance 0 if everything is OK.

      check again S_ALR_87013611 and KOB1 in order to verify the new values.

      4. KO88: Settle Maintainance Orders their final destination.

      5. If the Service flow is trigger, (the balance in report S_ALR_87013611 changed, and is not cero) you must run KSII again. After that, evaluate again report S_ALR_87013611 and your Balance is Cero again.

      Arturo.

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