Varying costs for labour work centre

[Former Member]

Hi

I have one particular work centre with WC categry as Labour that particular labour had a variable costing based on the complexity of the product. How do I capture this cost in the production order?. I have the option of maintaining the rate only once (activity type) for each work centre. The product wise cost for this work centre is fixed, as in I know at the creation of the product what will be the cost incurred for that particular product.

Please help me or get back witha ny clarifications regarding the query,

Thanks,

Ariel Desa

[Former Member · Accepted solution]

Why dont you try creating multiple workcenters in SAP for the same machine and assign different activity type.

hope this helps

[Former Member · Accepted solution]

Hi Sarvan

Thanks for the suggestion but this will nt work as I have the same resource assigned to too many different products I will have to keep creating new WC each time which is not feasible.

Thanks,

Ariel Desa

[Former Member · Accepted solution]

Hi,

A suggestion:

Create different activity types as per your need, i.e. with different rates.

Now in routing, go to operation details & change the activity type only as per your need. This way you don't need to create multiple work centers.

Do a test in your sandbox & adopt if it meets your need.

Regards,

Vivek

Added

Ensure you have the right values maintained in KP26 before you proceed with the above.

[Former Member · Accepted solution]

Hi Vivek,

Is it possible to change the activity type in the routing?

Thanks,

Ariel Desa

[Former Member · Accepted solution]

Hi,

Yes it is possible, just ensure that in the work center, costing tab, the reference indicator is not checked for the particular activity.

Regards,

Vivek

[Former Member · Accepted solution]

Thanks

[Former Member]

A slick way to do this could be the use of CAPP functionality. You can define the complexity as a standard value, and then calculate the rest based on a formulae.

Krishna

[Former Member]

Hi Ariel,

In Work Center you can assign standard values up to 6 so i think you can use this field for the different rate again one hint rule of maintainance will be no checking and then for the requred labor activity maintain actvity type and its cost

may be help you

with Best Regards

Anant

[Former Member]

In the costing data for a work center, you only assign the activity type / cost center for a standard value, and define the formulae for calculating the cost. How much activity you end up using, is defined in a Routing at the Material/Plant level. For example a Production work center uses labor activities for a cost center. You have assigned a costing activitiy 001 to the standard value labor, and also defined a formulae. In addition you have also defined a planned activity price in transaction KP26. Now in the Routing for Material A, you define that the planned labor hours are 10/Unit, and for Material B the planned labor hours are 20/Unit (since it's more complex). So the planned labor activity consumption will be more for Material B, based on Routing standard values.

Hope this helps.

Krishna

[Former Member]

hi Krishna,

Thanks for the useful advuce, I had already considered this prospect but the problem is in my scenario, the complexity of the job is not related directly to the hours it takes to omplete it. For ex. For Product A, that same labour is charging me Rs 100 for 1 hour of work because it is relatively simple, and for Product B:, he is charging me 200 Rupees per hour as it is slightly more complex. These rates are fixed for each product, how do i tackle this?

Thanks,

Ariel Desa