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Cost Center and res cost center

Former Member
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Hi team,

When i am going to settle the cost of PM Order , COst center pick from Equipment sonly. Then what is the use of assignemnt of cost center in work center.

thanx in advance

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Active Contributor
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Work Center is your resource used to do the job (work), the cost center assigned to the work center is its CO reflection for costing. So, whenever you work center is "working" that Cost Center is credited (provides activity output), basically has nothing to do with PM order settlement. By means of settlement you simply transfer the costs to the "end-object", normally it is a Cost Center whenever maintenance is not capitalized, or a fixed asset when it is capitalized.

Former Member
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How do I call you? SAPPM is not appropriate!...

You are attaching one cost center to your work center that supplies required resources (activity types) to perform the maintenance - in IR01. That cost center is to maintain the rate of the resource (Activity types) ie. Rs.500 / Hr or day - in KP26.

Whenever you are utilizing a resource from a work center, system refers the cost center / activity type combination to determine the cost. Based on no. of hours or days utilization, the planned cost / actual cost are determined from the Wctr, Cctr, Acttypes.

These are so called Source of cost center.

After completing the order, the cost incurred are with the maint. order. Now we need to settle to a cost object, it may be a cost center / WBS / Contract / PSEG etc.. depends on your business requirement. You may use a cost center as a Cost receiver / cost object to observe your maintenance cost of an Equipment / Func loc / or its group.

As a whole, the work center / cost center is used to determine the cost (Source). Equipment cost center observe the cost of maintenance(receiver).

Hope this description gives required clarification . If not, Revert back.