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Kp26 planning

Former Member
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211

Hi,

In the production cost center my client has posted direct cost (eg. labor, machine) and indirect cost (eg. telephones and guest house expenses). In kp26 we can plan for labor and machine activity. How can we exclude that indirect cost while executing actual activity price calculation.

As per my understanding we need to say the system for labor activity consider only labor related exp and for machine related activity consider only machine related expenses.

Please suggest how to do it.

Thx

Rajesh

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi Rajesh,

  1.  If you are following CC Independent planning method you can go ahead with Mr. Guido Boni suggestion. In that just you select Splinting rule as "No Splitting" and apply the same rule to your indirect cost (eg. telephones and guest house expenses).

2. If you are following CC dependent Planning method you can go ahead with Mr. Srinivas suggestion.

     In this method Actual Activity price calculation dependent on Planning methods (KP26 and KP06).

Regards,

LN

suryavarma_co
Contributor
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HI Rajesh,

Do Activity Dependent Planning in KP06 for the Combination of Machine Activity and Machine Act Related Exp, similarly plant for Labour Activity and Labour Related Exp. In KP26 just give the Machine and Actvity Quantities.

Best Regards

Surya Varma

Former Member
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Hi Surya,

Is it works for actual price calculation at the month end?

Thx

Former Member
0 Kudos

Hi,

If you are using dependent planing no need to do splitting because in KP06 you will have combinations of cost center, cost element and activity type. Here maintain required cost elements and cost center with labor activity. In overview maintain values for cost elements and activity. Here make sure that you have given labor related  cost elements for labor activity. Do the same way for machinery.

Before doing KP06 do KP26 for the same cost center and labor activity. After that, run plan price calculation through KSPI. Now come to KP26 and check plan price per unit.

The same will apply for actual activity price calculation through KSII as part of month end activity.

Hope it's clear.

Regards

Srinivas Salpala

suryavarma_co
Contributor
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Hi Rajesh,

What i said holds good only in Plan Price Calculation. If you want exclude them in Actual Price Calculation, you need to follow what Mr.GUIDO BONI has suggested. However, in my opinion, there are some important questions you need to get answers for like,

Where will these Indirect Cost go?

How will they get absorbed into Product Cost?.

Best Regards

Surya Varma

Former Member
0 Kudos

Hi Srinivas,

If i maintain the values in KP06 as you said, the system will calculate the cost like total plan cost planned in the cost center/total qty. But coming to actual, how the system will behave?

is it calculate on total cost posted to that cost center/total actual qty confirmed?

or is it calculate the cost posted against to that particular planned cost elements at the cost center/ actual qty confirmed?

thx

rajesh

Former Member
0 Kudos

Rajesh,

Plan price per unit you can derive by

= total plan cost in cost center (KP06)/total plan qty (kp26)

When it comes to actual cost

Total actual cost in cost center (comes from FI postings) /actual qty confirmed in the order through CO11N.

Hope its clear....

Regards

Srinivas Salpala

Former Member
0 Kudos

Hi Srinivas,

As i said earlier, my client is posting the expenditure like direct labour, machine and other expenses also. In this case how the system will behave? at the time of KSII, is the system will consider only labour and machine or all expenses?

Thx

Rajesh

Former Member
0 Kudos

Hi Rajesh,

Let me explain you with a simple example:

Direct labor:  Plan/Actual = 10000/12000

Machine: 10000/15000

Other exp: 20000/30000

total = 40,000/47000

Activity: Hours = Plan hours/Actual hours = 100/120

Now if you want to consider only Direct labor and machine cost elements for your planning, give only these two cost elements in KP06 planning and maintain activity measures in KP26.

In our example, when you run Pln price cal (KSPI) = (10000+10000)/100 (plan hours) = Rs.200/hour

As part of your month end activity, when you run Actual activty price cal (KSII), it will consider your actual cost = (12,000+15000)/120 (actual hours confirmed through CO11N) = Rs 225/hour

Hope you got it..

Regards

Srinivas Salpala

Former Member
0 Kudos

Hi Surya,

They are posting indirect costs directly to production cost centers.

Present in the legacy, they are apportioning indirect cost to different products based on some percentage.

They are not interested to restructure the existing cost center structure. So i am exploring the ways to capture this cost to the product.

Thx

Rajesh

Former Member
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Srinivas,

Thanks for your immediate response,

At the time of KSII, if the system omits the other expenses, then it will be fine. It should omit the other expenses, this will be allocated to product through costing sheet on pct base.

I will check and come back to you.

Thx

Rajesh

Former Member
0 Kudos

Dear Rajesh,

if you wish to exclude particular costs from activity price calculation you can make use of

a splitting scheme, with rule "no splitting".

Please also check notes 772794 and 721487 carefully.

Additional info:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/66/bc73cc43c211d182b30000e829fbfe/frameset.htm

br, Guido