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Reg.Creation Of Formula in PP

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Hi all,

Please Tell me How to create formulas For Calculating Machine Time,Setup Time, Labour time in the Work Center.

My Calculation of Finding the Product cost which is manufactured Using CNC Machine is below

CNC M/c Hr Cost - Rs 300 ie.,Rs.5 per min.

If My Product Gets Completed in 5 Min Time in the CNC M/c means then My Product cost is 5 Min X Rs.5 = Rs.25.

How to create this Formula in Work Center.Pls Guide Me.

I have Gone through the Standard Formulas Available in the SAP R3.But I Can't Understand the logic how its created.

Thanks in Advance,


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Answers (4)

Answers (4)

Former Member
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Steps for creating the Formula for the Work Center.

- Goto Tcode : OP19 and define the Standard vale Keys if the standard keys won't suffice your reqt.

- Goto Tcode : OP21 and using the parameters you need to define the Formula.

- Create the Activity .

- Goto Tcode : KP26 and assign the the Activity Price to the Activity as Rs 300/Hr

OR you can use.

- Goto TCode ; CR01 /CR02 and assign the formula for the work center / Plant combination in Capacity, Scheduling, and Costing Tabs and also assign the activity Types in the Costing Tab for Setup / Process / labour etc .

- Pre-requisite valid BOM is existing.

- Run the Cost Estimate in CK11N for the material and release the the same in CK24.

Hope this will help you.


radhak mk

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Define the unit of measurement in the work center i.e. min or hour in the Default Values tab. I suggest Min (in your case) in the Machine parameter.

Then check the activity type and the cost center you have given in Costing tab of work center for Machine Activity.

Now go to KP26, enter the Controlling Area, Version, Periods, Fiscal Year, Cost Center and activity type, then goto overview screen.

Enter the variable price as Rs. 5 and Price Unit as 1 and save.

Now run the cost estimate and check for the costs for machining.

Check and revert.



Former Member
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The value like setup tome , labour time and processing time are maintained in routing.First you have to create three variables in transaction OP7B transaction or you can use the SAP created ones.Now you have to define standard value key in transaction OP19.The standard value key will be used in Wrk centers basic data view.Now you have to create formulas in transaction OP21.Which will be used in work centers scheduling and capacity and costing view.The parameters that you have defined in the transaction OP7B that will be used in formula creation.

Hope it will help you.



Active Contributor
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Hi Badri,

What's your scheduling formula for that work center?In most cases the same Scheduling formula is used for Costing purpose also.Cost of machine hour can not be maintain in Formula, but it is maintain in KP26.So you have to first define your costing parameters and then assign it in KP26 with price (5 Rs / 5Min).