Labour hour costing for activity by salary in project

[Former Member]

Hi All,

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

Regards

Gajendra

[srinivasan_desingh]

Hi Gajendra,

Salary contains lots of parameters like

Basic Pay

Reimbursements

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.

Regards

Srinivasan Desingh

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

Thank you Srinivasan

[srinivasan_desingh]

This message was moderated.

[virendra_pal]

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

[Former Member]

There are diffrent persons having diffrent salary,

can we map through activity type?

can we do costing on employee basis?if yes then what will be the change in configuration.

Regards

Gajendra

[Former Member]

Hi,

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.

Regards,

Gokul