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Former Member

Cost Centers & Profit Centers in PM Order Settlements

Dear All,

Can anyone please explain me the exact use of following Fields in the PM Order?

Additional Data Tab - Responsible CCt , Profit Center , Object Class

Location Tab - Account Assignment u2013 Cost Center

Settlement Rule - Settlement Receiver (When category is CTR-Cost Center)

Also would appreciate if the explanation can be given on the impact on above in settling the Orders.

(CAPEX Orders as well as OPEX Orders)

Thanks & Regards,

Thushantha

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2 Answers

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    Former Member
    Mar 04, 2009 at 12:19 PM

    Hi,

    Order is a Controlling Element , When u work through Maintenance Order all the Expenses occured shd be taken from user department for which u work , so the cost of order is settled to the receiver for which work is done. CTR is the category for Cost Center Receiver.

    Moreever u dont hv to worry abt Profitcenter as the Cost Cenetr is always linked with Profit Center when it is created.

    When u mention the cost center in the Location TAb , the settlement rule for order whose reference object is equipment is created automatically with settlement receiver as the same cost center.

    narendra

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    • Former Member Former Member

      Hi,

      Responsible Cost Center is the cost center which is attached to ur Maintenance Work Center. Which is working against Maintenance Order and always get credited if some expenses occured.

      Location Tab cost center is the cost center attached to the Production Workcenter for which Responsible work center (Maintenance Work Center ) is working. It is get debited when Maintenance Order is settled.

      In short Resposible cost center is credited as it has given service and Location tab cost center debited as it has availed the service.

      naren

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    Former Member
    Mar 11, 2009 at 02:03 PM

    Hi,

    Additional Data Tab

    Responsible Cost Center: - The responsible cost center is the responsible area for authorization check on internal orders.

    This does not have to be the cost center to which the order settles its costs.

    (ex The cost center "site office" is the responsible cost center).

    Profit Center:- Operating results for profit centers can be analyzed using either the

    cost of sales approach or the period accounting approach.

    By analyzing the fixed capital as well, you can expand your profit

    centers for use as investment centers.

    Location Tab

    Cost Center:- which belongs to Equipment Master or Functional Location. This cost will be comes under Account Assignment Category

    Settlement Reveiver:- Its the set of cost elements which receives the Actual cost from the work order & transfers to the cost center.

    regards,

    Venkatesan Anandan

    Edited by: Venkatesan Anandan on Mar 11, 2009 3:03 PM

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