labour cost in a PM work order should not be settle to cost center.

[Former Member]

Hi

As per the settlement profile the cost accumulated in work order will be settled to the cost center .

PM work order contains different types of costs like labour cost , material cost,service cost, for all these types different cost elements are assigned in the allocation structure .

While settling a PM work order labour cost should not be settled to cost center but the cost should display in work order and other costs to be settled to cost center as per the settlement profile .

Please suggest

Thanks in advance

Gangadhar

[Former Member]

It sounds as though you might not fully understand how Activity Types work. Basically the Salary Expense from employees will be charged to their 'Home Cost Center'. When they perform work on the Maintenance Work Order a posting will occur through Activity Types/Prices which will Debit the Maintenance Work Order and Credit the Home Cost Center. When the Maintenance Work Order settles it will post the Labor according to the Settlement Rules. A posting will occur which will Debit the 'receiving' Cost Center and Credit the Maintenance Work Order. In this scenario there hasn't been any duplication of Labor costs at all. The only thing that has happened is that costs have 'moved' from the Home Cost Center to a Maintenance Work Order to a 'receiving' Cost Center. Hope that this helps!

[former_member182098]

Hello,

If you do not want to settle labour costs, then you should have that type in Allocation structure at all. Delete the cost type "Labour Costs" from the allocation structure.

Regards,

Ravi

[Former Member]

If I delete this labour cost will not displayed in work order.

I want the labour cost to be displayed in order but not to settled to the cost center .

Thanks

Gangadhar

[former_member182098]

Hello,

What do you mean by "will not displayed in work order". Are you talking about master data or transaction data.

Otherwise, if you keep the labour costs type in allocation structure, how would it be shown?

Please give me some more clarity.

Regards,

Ravi

[Former Member]

Hi Gangadhar,

Just revisit what you are asking for. You are different types of Costs onto the Order and you don't want to settle certain Costs at all...It's not the correct Business Practice.

When you are loading the Costs onto the Order, you will be able to see in the Order Analysis all the Costs seperately represented by respective Cost Elements.

Ideally, during the Period-End, all the Costs must be settled to required Cost Objects. You have the flexibiltiy to choose the Settlement Receiver Objects in the Allocation Structure. Even if you want to settle the Material Costs to one Cost Center, Labour Costs to another Cost Center etc, you can design your Allocation Structure accordingly.

But, once you loaded the Labour Cost and thinking that it should not get Settled, if you delete these Cost Elements in the Allocation Structure, at the time of Settlment of the Order in the Period-End, you will get an Error Message saying the "Complete your Allocation Structure : && Cost Element cannot be assigned"...etc.

So, there is no way that you can ommit certain Cost Elements (Labour Cost in your case) from being settled. When you say, you want to see the Labour Costs intact after Settlment...what do you mean by that? Even after Settlment, you will be able to see how much Labour Cost has been loaded onto the Order. If you mean, the Labour Cost should remain as a Balanace on the Order forever, It's not Best Business Practice and no Client will accept that.

Discuss with your Core Team / Process Owner once again about the exact requirment.

Revert back for further assistance...

Srikanth Munnaluri

[Former Member]

Hi Srikanth

Thanks for your replay

Why we require this is

1.In a PM work order differents costs are collected, like Material cost ( Spares), Service( by external people), labour ( Internal employes). If the cost collected in order for labour is 100 $ and spares is 10$ while settling 110$ will be settled to cost center. Each cost center will have budject limitation so this 110$ will influence the forecasting of the cost center.

2.As HR module is implemented all the internal employees labor hours will be settled to one cost center as apart of payroll run and for the same employees again we are posting labour hours to other cost center so here some amount is duplicating .

Can we settle labour cost to a seperate dummy cost center.How to set up this

Thanks in advance

Gangadhar

[Former Member]

Hi Gangadhar,

I feel there is some clarification missing ....

1. When you say that if you settle $110, it will impact the budget of the Cost Center....I guess you are talking about the Settlement Receiver Cost Center. See, if the budget is maintained for "Cost Center" but not only for Salaries / Labour Cost Element. If you want to restrict the budget at Cost Element level, you need to use Funds Management where in Fund Center and Committment Item concept will come into picture.

2. When you say, at the time of Payroll run, the Activities will be settled to one Cost Center and there will be duplication -- As per normal practice, each employee master will be linked to some Cost Center. So, if there is an employee working for Maintenance Cost Center, obviously, when you do the Payroll run, his activity hr are transferred to Maintenance Cost Center. And in the Routing of the Maintenance Order, you need to mention the Maintenance Cost Center from where the labour cost will be absorbed onto the Maintenance Order.

I don't see any duplication of Labour Hrs / Labour costs taking place in this scenario...

Revert back with comments...

Srikanth Munnaluri