Actuals for labor and machine time

[Former Member]

I had a client ask me about planned versus actual on labor and machine time. They are currently implementing SAP and have a legacy manufacturing system that gets very granular when it comes to tracking machine and labor time with rates. They are struggling to accomplish this within SAP. They have 50 different plant workers that could work in several different work centers but they all have different labor rates and there are multiple machine rates. Does anyone have an idea on how to record this information with in SAP to get actuals per job?

ALLEN SULGROVE

Director of Client Services

ASUG DFW Chapter Chair

<private information removed by moderator>

[Former Member]

Hello,

Yes, assuming you are using Activity Type Rate planning you can support this most commonly using Production Orders and then time confirmations.  I doubt you would want to support 50 different rates though for every individual.  General best practice is to group your Resource Pools into logical lumps for rates and skills that would closely align.  You can alternatively just use Internal Orders or WBS to capture these costs simply by using a Direct Activity Allocation. 

To accurately solution what would be the best option, there are of course many questions to give the correct path forward.  Please let me know if you would like to discuss further.

Thanks,

Joe

[Former Member]

Thank you for your response.  I don’t think internal order/wbs  supports all the functionality with production orders.  Am I think correctly or does it have the functionality?

[Former Member]

As I mentioned, it is hard to determine what the best Object would be to use with out knowing the requirements better.  Production Orders do have functionality available that is not immediately inherent with WBS/Orders. 

We have resources that have experience in this area, that would be happy to help.  Please take a look at www.altavia.com and contact us or me and we can discuss.

[Former Member]

Thank you for the reply.  We are holding off on moving forward till we do some more scoping.

[former_member753037]

Hello- can I ask what solution you ended up going with? We are in process of migrating to SAP from a previous ERP system and have this exact scenario going on currently. We are concerned of changing our strategy too far due to accounting/controlling and audit concerns that could come up if we change how we calculate COGS too strongly may go against Generally Accepted Accounting Practices, GAAP.

[Former Member]

I saw your posted comment. Please raise a new question and follow our rules of engagement: https://community.sap.com/resources/rules-of-engagement. I suggest using the "I have a similar question" option under the question to get started. Feel free to take our Q&A tutorial at: https://developers.sap.com/tutorials/community-qa.html. With these tips you'll be able to prepare questions that draw responses from our members.

Best,

Your SAP Community moderator