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Former Member

Labour hour costing for activity by salary in project

Hi All,

Any body having idea about costing for labour hour for activity through salary of employee with in the project.



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3 Answers

  • Aug 16, 2010 at 12:14 PM

    set the rate via KP26 for the cost centre and activity type

    create a work centre and assign the cost centre and activity type to it

    assign the person to the work centre

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    • Former Member Former Member


      Maintain different work centers for employees having different salary structure. Accordingly create activity type and cost center combinations. Assign them to the work centers. Then assign the employees to the relevant work centers. This is the simplest and standard way of fulfilling your requirement.

      For the configuration that needs to be maintained to achieve the above functionality please refer SAP Help. If anybody knows a better way of achieving the required functionality please suggest.



  • Aug 16, 2010 at 05:46 PM

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  • Aug 17, 2010 at 04:29 PM

    Hi Gajendra,

    Salary contains lots of parameters like

    Basic Pay


    Payments if employee as vendors

    Deductions like taxes, insurance

    Etc.. Etc..

    Which one to select and which one to leave?

    Monthly or bi weekly or weekly the above parameters will change based on the payroll period. So, system should calculate dynamically for each and every employee. Security will be a major issue as salary information are very sensitive.

    If you know the cost of a person (eg. your manager) in the project, you can easily find out his salary. This will create problem within employees.

    Solution 1: To avoid the above situations, most of the companies follow this solution. Controlling guys will calculate group of person's (eg. all senior managers) cost to the company which includes his salary, deductions, overheads like electricity, phone charges etc.. and come up with an approximate blended rate. All the companies will have this rate card in hand.

    Using KP26 you can capture the planned and actual costs in your project. If you are selling service of a person, then you should have selling rate card (price card) which can be used in condition records.

    Solution 2: In the personnel master PA30 use the infotype 27 - Cost distribution. Here you enter the WBS and percentage of work performed / planned by the employee. you can distribute to many projects/orders.<br />

    After the payroll run, we need to post this to FI as journal entries using the transaction PC00_M99_CIPE and PC00_M99_PPM.

    By this way you can capture the actual salary cost to your project.


    Srinivasan Desingh

    Edited by: Virendra Pal on Aug 17, 2010 9:32 PM

    Thank you Srinivasan

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