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Production Order and cost center

Former Member
0 Kudos
2,070

Hi Gurus,

I have a workcenter and there is no cost center put in it, no costing information maintained for this.

I use this work center in my routing.

Say I create a production order for this material.

What is impact of this production order?

What will happen if there is no cost center in the work center, used in Production Order.

It will stop which activity like?
Will it stop confirmation? Settlement? Doing GR?

Can anyone explain me on this?

Your reply is highly appreciated.

Regards,

Srini

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

When there is no cost center maintained in a work center system will not stop you create and execute production order.

You can easily create, release and do the GR for that order.

But when you try for order costing then you are surely will end up getting error message, cost centers not maintained.

Also you will not able to do the operation confirmations.

Settlement is possible but there is one very basic error here.

When you want to do the settlements, system will refer to master data for material price & identify the differences. This difference is variance. As you will not maintain any cost centers in the work centers, you are again end up getting error message when you want to do the cost estimation run. This should be done even before you create your first production order. So it is always the wrong entries you are posting from the beginning if you miss cost centers in work centers!!

In simple terms, cost center is an object which accumulates all costs incurred.

I hope it clears your doubt on cost centers.

Pavan

Answers (6)

Answers (6)

Former Member
0 Kudos

Hi,

When there is no cost center maintained in a work center system will not stop you create and execute production order.

You can easily create, release and do the GR for that order.

But when you try for order costing then you are surely will end up getting error message, cost centers not maintained.

Also you will not able to do the operation confirmations.

Settlement is possible but there is one very basic error here.

When you want to do the settlements, system will refer to master data for material price & identify the differences. This difference is variance. As you will not maintain any cost centers in the work centers, you are again end up getting error message when you want to do the cost estimation run. This should be done even before you create your first production order. So it is always the wrong entries you are posting from the beginning if you miss cost centers in work centers!!

In simple terms, cost center is an object which accumulates all costs incurred.

I hope it clears your doubt on cost centers.

Pavan

rupesh_brahmankar3
Active Contributor
0 Kudos

Dear,

What will happen if there is no cost center in the work center, used in Production Order.

It will stop which activity like?

Yes It will stop confirmation not GR you can do it through MB31 or MIGO
Settlement yes .

Please test the same same and come back.

Regards,

R.Brahmankar

Former Member
0 Kudos

Hi srini

If you have not maintained the cost center in work center, your operation cost cannot be accounted.

But still you can do the confirmation and GR.

Santhosh

svs_sap
Active Contributor
0 Kudos

Hi Srini,

If you do not assign cost center to work center then activity carried out in that work center are not accounted. To capture activity cost we need to maintain it.

Regards,

Sharat

Former Member
0 Kudos

Hi Srini,

You can still do the confirmation but the thing is you should maintain the standard text key on your routing in order to incorporate your costing calculations including all claims. We had same scenario, we didnt maintained any costing details in our workcenters but we do very strict in terms in the ROUTING. You can define each of your production operations for example a designated standard text/value key.

Furthermore, to your other concerns of GR - yes can proceed. For us, GR is done in EWM system. But for you I think is easier if you only used WM managed.

Cheers!

Former Member
0 Kudos

Hi Srini,

In order to cost the activities performed in a work center, you must assign the work center to a cost center - Ref to SAP help doc on this -

http://help.sap.com/saphelp_40b/helpdata/en/b1/c0373c439a11d189410000e829fbbd/content.htm

Any business reasons for this requirement/issue?

When there is no Cost center assigned to the Workcenter, we hit an error with Cost calculation of the order during Creation, Release and Confirmations - and obviously, this is going to hit the Settlements.

Did you test the same scenario, and observed something different?

Please refer to the screen-shots below -

Regards,

Senthil