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WORK center Activity types

Dear Expert

kindly i have an issue during assigning the activity types for the work center

i have one work center -- Technician001

and my customer want to assign 6 activity types as following : MEchanic - Electric - work shop charg hand - G.b Tech - H.D - Field service Mang

till now this ok and can be done but the problem .. that the ( work shop charg hand - field service Mang. ) will never working in maintenance order so i will not assign these activity types to an order and according to this i will not make a confirmation which will cause to not calculate the cost of these activities

and my customer want to charge every maintenance order with the cost of these activities what is the best solution i can do here

Thanks in Advance

regards

Hossam Ghanem

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3 Answers

  • Best Answer
    Posted on May 11, 2015 at 12:34 AM

    Hi Hossam

    Will this be a correct understanding of what you wrote:

    1) Some of the labor costs will be charged immediately on the work order by time confirmation.

    2) Some of the costs (like management, office rents etc) should indirectly be shown on the work orders.

    Is this a correct understanding of what you want?

    Regards

    Savas

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    • Hi Hossam

      This is a good example of overhead cost calculation. So you can add a percentage (say 5% of labor costs) or a constant amount on top of your labor costs. The calculation is configured by Finance in the costing sheet and applied to different order types. It is obvious that you will need some approximations/assumptions for this. For example, your manager's and other office resources' (engineers, reliability team etc.) costs was 100K last year. And your total maintenance order costs was 1M. Therefore 10% Overhad Surcharge will be logical for this year.

      The following site has all the detailed information you may need:

      Overhead Cost Controlling (CO-OM) - SAP Library

      The SAP PM/CS side of the story is pretty much the same but you need to run one more transaction before cost settlement in order to calculate the surcharges: KGI2

      What I suggest is get some Finance Help to set up the Costing Sheet for the surcharges. Ihope this helps.

      regards

      Savas

  • Posted on May 10, 2015 at 04:00 AM

    Hi Hossam,

    Sorry I am bit confused with your request.

    Can you please confirm whether work shop charg hand - field service Mang these activities should be costed or not.

    If you want these activities not to be costed, then you dont maintain KP26 value.

    Your statement says, you will not use the activities, but your client wants to use it ???? What does it mean...

    Regards

    Terence

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    • Hi Hossam,

      Unless you confirm in the operation you will not get the cost calculated for the order.

      Also you can setup overhead cost (costing variants) for cost related to manager etc.

      Also you can check with FI, whether they can post a entry against this Manager for this work order, i dont see any other options available to calculate the cost of the person who does not work on the work order.

      Regards

      Terence

  • Posted on May 13, 2015 at 03:41 AM

    if you want to see a breakup of costs including the workshop charge hand, then you must confirm hours against the work order with that activity type.

    you do not need to assign the activity type to the work order, you should be able to change it in the confirmation screen of IW41 at the time of confirmation.

    Other than that you could journal costs to the order under that activity type, but a confirmation would be much easier.

    Someone will have to do something, or it cant get there.

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