using standing order for settling both to cost center and WBS

[Former Member]

Hi ,

We have mapped one equipment to one standing order . The standing order settles cost to equipment cost center . Whenever a notification is raised ,The PG person creates a PR through a java dynpro application which basically automates account assignment (F - equipment order ) to respective PR service/material line items based on equipment from notification. This process is working fine for purchase requisitions where account assigngnment is equipment standing order and periodic settlemnt happens to equipment cost center . With this process users are able to find revenue expenses incurred on equipments.

Now users say they want similar process for capital expenditure . Depending on nature of job that arises out of notification , they would like to create PR for either revenue or capital expenses . They want to capture cost initially in same standing order , but later the cost should get settled either to equipment cost center or to a WBS based on a indicator selected in PR creation screen .

The ultimate aim is to find both revenue expenses and capital expenses incurred against an equipment .

How to enable a single equipment standing order settlement to either to equipment cost center or to WBS ?

Thanks in advance

NPB

Edited by: Narasimha Bhat on Jan 23, 2011 8:18 AM

[peter_atkin · Accepted solution]

NPB,

Why do you use standing orders to collect equipment costs?

Why don't you use separate orders?

PeteA

[Former Member · Accepted solution]

Thanks ...

Our Engineers basically create PR (external service) directly in MM whenever they get notifications .They used to put account assignment as cost center and hence we could not get equipmentwise cost . As time and resource was a constraint , Insteadof teaching them whole PM cycle , we created standing orders and assigned it to equipments . Later we created a application to create a PR directly from notification/combining notifications . The application automatically assignes standing order as account assignment and thus our purpose of collecting cost for equipment got solved.

Yes you are right ... we may now have to create two different types of orders one for revenue expenses and one for capital expenses for same equipment and not assign it as standing order to equipment . Depending on what type of expense user chooses in application we will attach the corresponding order as account assignment object in PR .

Is there any simpler process you can suggest ?

NPB

[peter_atkin · Accepted solution]

You could settle all costs to an interim account. Then use an ABAP program to settle the relevant costs from the interim account to the CC or WBS as required.

PeteA

[Former Member · Accepted solution]

Thanks for the great insight ...

Can you please elaborate on "An interium account" ? ..I need to use order to get equipment cost ..How one single order can be used ?...

[peter_atkin · Accepted solution]

You would need to talk to your FICO team regarding the interim account.

If this is OK with FICO, then you would need to change the settlement rule on the standing orders to point at the interim account. All settled costs would then be posted to this account. You ABAP program would need to work out which of those costs (or proportion of the costs) would then need to be settled from the interim account to the CC/WBS

PeteA