Using Template Allocation for actual activity posting

[former_member195434]

Hi,

The scenario is that there are (lets say) 3 FG produced for which 3 Production Orders will be created. But we cannot enter actual labor (activity) hours used per material at the time of confirmation. We will know the total actual hours consumed at the end of the month only. We want to distribute the actual hours to all the 3 Production Orders in the ratio of the quantity of FG produced by each Production Order.

Example: PP Order 1 - 2 qty, PP Order 2 - 3 qty, PP Order 3 - 5 qty.

               Total hours consumed = 50 hours.

               Then PP Order 1 should get debited with 10 hours, PP Order 2 with 15 hours and PP Order 3 with 25 hours at month end.

               i.e  Actual Hours on and Order = Total Hours posted in the Cost Center * (GR quantity of that Order/Total GR quantity of all orders)

I have considered using CKMDUVACT but I could not find any way to create distribution with above logic.

So I am planning to use template allocation. The environment will be 001 - Cost Estimate/Production Order.

Can anyone suggest if there is any default function that can be used for above logic?

If not, can I create a function without ABAP help?

BR

Abhinav

[malay_vakil · Accepted solution]

Hi Abhinav,

There is no standard function is available to meet your requirement but you can you mix approach of Template allocation & CKMDUVACT.

1) Use Template allocation- with standard function of template allocation you can transfer actual quantity based on quantity confirm on production order. for example order 1 has 10 confirmation and order 2 has 20 confirmation then labour activity confirmed on order 1 & 2 will be 10 & 20 respectivity

2) Use CKMDUVREC- use transaction to book actual labour hours at cost center level.

3) CKMDUVACT- this will distribute total books hours on cost center to respective order based on quantity confirmed. If total hours is 90 then order 1 will have additional differential booking of 20 hrs and order 2 will have 40 hrs

Regards,
Malay

[former_member195434 · Accepted solution]

Hi Malay,

This looks like a good idea. But when I do CKMDUVACT I am getting error "

No data found for distribution. Processing was terminated"

There's obviously some config missing but I am not getting what. How do I generate the default distribution?

Another doubt - with template allocation, we can maintain different templates for different FG with the help of OH Key. Can the same be possible using CKMDUVACT?

BR

Abhinav

[malay_vakil · Accepted solution]

Before you use CKMDUVACT need to post actual activity through CKMDUVREC

[former_member195434 · Accepted solution]

Hi Malay,

I have got CKMDUVACT  working when I am posting the activity on the production order through KB21N.

But when I am posting the same through template allocation (based on your suggestion on quantity confirmed), CKMDUVACT  does not recognize it as 'Withdrawn Quantity'.

I guess this could be due to the business transaction

RKL   Actual activity allocation - KB21N

RKLT  Actual template allocation. - Template allocation CPTA.

CKMDUVACT  perhaps does not recognize RKLT as actual consumption?

Any suggestion? Or should I just give up and do ABAP coding in template functions?

BR

Abhi

[malay_vakil · Accepted solution]

Hi Abhinav,

Logically it should work but it is world of SAP so may be your observation is correct.

In this scenario you have two option..

1) Raise message to SAP and hopefully they can provide some solution. (DUV functionality has many notes)

2) As you told earlier..DEVELOPMENT

Malay

[former_member195434]

Hi,

My current idea is to do the below for the above scenario:

1. Use template allocation for plan activity values. This is possible because there is no distribution required for plan values. So we're simply replacing the activities from work center master data to template allocation method.

This will be used in both std cost estimate and preliminary cost estimate.

2. Use indirect activity allocation cycle for distributing actual activity values - This will be done by creating order sets (similar to order group) and placing them in the receiver side of the allocation cycle and marking the COGM cost element (total credits on the order) as the tracing factor. Total activity value will be entered in the cost center using KB51n before executing this cycle.

Is there any problem with this method? Is there any better way to do this?

Dear and SIr,

Your expert suggestion pls.

BR

Abhinav

[Former Member]

Hi Abhinav,

Considering your requirement and process suggested by Malay should work for you.

But to make it little simpler, if you wish to have actual activity quantity hours to be distributed based on FG receipt quantity on the order, I too have the same option with minor change as suggested below:

1. Fix 1 Hour per unit of Out put in the standard routing with auto confirmation of production quantity.

This ensures that 1 hour is booked for every quantity delivered by production order.

Further, this confirmation is considered for distribution of activity differences.

2. Update actual hours of each activity using transaction CKMDUVREC during month end.

3. Run CKMDUVACT to distribute difference hours with proportion to hours confirmed based on actual quantity confirmed.

Using this process does not require any template allocation and activity confirmation can also automated based on mile stone operation or any other operation suggested by PP team..

All this process works if your plant is ML activated as CKM* transactions are relavant for ML. I am not sure if these transactions work for non ML plants. Please test.

If your plant is non ML, you can use  indirect activity allocation approach. If you use COGM Value as tracing factor, it may not work as same as production quantity ratio which you are expecting. You can also explore use of SKF of production order quantity from LIS.  Create SKF using LIS so that production quantity automatically updated and no need to maintain.

Regards,

Santosh Varanasi

[former_member195434]

Hi Santosh Sir,

Thanks for the inputs.

1. We have more than 6 activities so cant depend on routing for plan values. We dont want to use multiple work centers for one operation. This was the reason I was using template allocation for booking of quantities rather than relying on PP confirmations. This was the most ideal solution otherwise.

2. CKM* works without ML, I tested that part. The only trouble is that if I use template allocation then CKMDUVACT does not recognize activities booked on production hours. (perhaps because business transaction is RKLT)

3. I had considered link to LIS, but unfortunately it appears that we cannot assign SKF to Production order from LIS the way we can assign them to cost center.

4. The reason I felt COGM value as tracing factor is because FG qty is not available as tracing factor. Also, there are co-products too, so the tracing factor will consider the co-product receipts too, which I feel is right for the distribution. Why do you think "it may not work as same as production quantity ratio".

BR

Abhi

[former_member195434]

Hi,

Any suggestions by experts?

BR

Abhi

[pavan_kumar18]

Hi Abhinav,

After observing your scenario, initially you are tracking only material cost through production order confirmation process.

You are missing the overhead confirmation part.

Best Practice:

It is required to know the overhead cost per material at least for planning.

( As you said you can get the track of man hours at the end of the month....so better to get the details of overhead from the history.)

By using the said data create a routing using the work centers ( Cost Centers /Activity) to track the overhead.

You can increase the operations as per the requirement

Confirmation:

Overhead cost tracking:  Planned Price multiplied with actual hours/ qty.

Then you need to re-valuate the order by following month end approach...

Regards,

Pavan Kumar Arvapally

[former_member195434]

Hi Pavan,

Thanks for replying.

1. It is required to know the overhead cost per material at least for planning - Std Cost Estimate will read the plan quantities for activities. There is no issue with this. Moreover, we have more than 6 activity per work center. And as you may know we cannot assign more than six activities in a work center. We dont want to use multiple work centers just to accommodate this shortfall.

2. Overhead cost tracking:  Planned Price multiplied with actual hours/ qty - This is the problem. We do not know the activity consumed per production order. So at the time of confirmation users cannot enter the hours. We only get the total hours consumed on a work center(cost center) at month-end. This is the reason i need to allocate them to all the production orders with the logic already explained.

I believe we can use template allocation for this although I have never used it before but I find a compelling reason to use it here. Pls let me know if you have any idea or if you can find a reasonable workaround.

BR

Abhi

[former_member388328]

Hi Abhinav,

Either distribution or template allocation are based in percentage or quantity split. In your case is this is going to change every month ?

Thanking you

Vengaiah

[former_member195434]

Hi Vengaiah,

The basis of allocation in my case should be either GR qty or total credits on an order.

Hours consumed per order = Total Hours posted in the Cost Center * (GR quantity of that Order/Total GR quantity of all orders)

OR

Hours consumed per order = Total Hours posted in the Cost Center * (total credits on the order / Total credits in all the orders)

This basis for allocation doesn't change every month. Of course the total hours posted in the cost center will change every month. Any pointers?

BR
Abhi

[former_member388328]

Hi Abhinav,

Please use SKF for your requirement.

Thanking you

Vengaiah

[former_member195434]

Hi Vengaiah,

As i said, it is impossible to post SKFs to production orders in our case because of the large no of prod orders. So it would help if you could elaborate.

BR

Abhinav