Cost center/work cost center

What is the difference between work cost cneter and cost center(cost center capture the cost via cost elements).but what abour work cost centers,

Dear Madhu,
COST CENTER INFORMATION:
Cost Center (KS01 - Create, KS02 - Change, KS03 - Display)
Definition of a Cost Center:
Master data and Configuration settings found in Controlling...
"An organizational unit within a controlling area that represents a defined location of cost incurrence."
The definition can be based on:
Functional requirements
Allocation criteria
Physical location
Responsibility for costs
WORK CENTER INFORMATION:
The following is information on how to create a work center and use it. If you need further information simply hit F1 Help in the application to explain the use of the main fields.
Work Center (CR01 - Create, CR02 - Change, CR03 - Display)
Using the data maintained for a work center, you can
- Determine which machines or people are to be used in the operations
- Calculate costs, capacities and dates for the operations
Transaction: OP42 - Allows you to Configure the default value for Work Center during the initial creation.
After creating many work center in the Routing, the users might want to check what materials and components allocation have been updated with this work center. You can used this program [Work Center in Routing - Search through all the routing for the material and component allocation used (|http://www.sap-basis-abap.com/abap008.htm]).
The standard program transaction CA80, checks where the work center was used in the routing. However, it did not list the components allocation for the work center.
Pooled Capacity field - When a production order 1234567 has the capacity requirement on its work center Wxxxxx. It means it has the requirement on pooled capacity Pxxxxx. If more than one work center shared this pooled capacity, the requirement (transaction CM01) will be shown on all the work center with the SAME shared pooled capacity.
I hope this helps to clarify the purpose of the Cost Center and Work Center and how they can be used.
Kind Regards,
Brendan

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Project costing/ Net working Costing

Dear PS experts,
I have some doubts related to PS. Basically i m FICO.
1. Normally in Product Costing we have a option Product Cost by Order/Period/Sales Order. If we want
to Costing in in PS with Customer Project, which one is suitable.
2. For calcularting of WIP also we have different option. which one is better.
3. Settlement of the Customer project is which cost object (we r not going with COPA)
Regards
Raj

Hello
1.There are different ways of Cost Planning in a Projects. Manual Cost Planning, Network Costing, Detailed Cost planning (based on Cost Element and Activity types), Easy Cost planning and Unit costing. The cost planning approach depends on your client. Usually if its a WBS structure go with Easy Cost Planning.If you are having complex structure with networks,activites and materials go for Network costing.
2.The way to calculate WIP is Result Analysis. Assign RA key to your project profile.
3.Customer projects are usually settled to PSG. If COPA is not activated, you can settle to Cctr. There are many threads around Settlement of customer project--without COPA, just refer them for more details.
Thanks
Sarang

Cost Center, Work Center and Profit Center

Hi ALL,
Can any one please explain me the concept of Cost Center, Work Center and Profit Center.
And where and when do I assign the cost center???
Amit

Hi Check the following "
Cost centers represent areas of responsibility where costs are incurred or where responsibility for costs may be assigned. They represent the smallest unit of responsibility within the organizational structure of an enterprise.
A cost center can be pictured as a cost bucket such as a department, product line, production stage or geographical area.
An unlimited number of cost centers may be created.
All cost centers within on controlling area have to be assigned to a cost center hierarchy (standard hierarchy).
Costs originally posted to one cost center may be distributed and assessed to one or more other cost centers using allocations.
How are costs assigned/posted to a cost center?
External financial accounting documents created in FI, AM or MM that post to a G/L expense account can be configured to require a cost center assignment be entered at the time of transaction entry. The system automatically creates a parallel CO document that posts to the indicated cost center.
Cost elements master records can be configured to be posted to a certain cost center (automatic account assignment).
In addition, other non-financial activity (i.e., direct labor hours) may be posted directly to cost centers from within CO or via other modules such as PP or HR
chandra

Material cost charge to Production Order from Cost Center / Work Center.

In Production Order Environment, is it possible that goods are issued from Storage location to Cost Center / Work Center, and in turn charged to Production Orders.
Scenario. Transformer Manufacturing.
Production Order size : 100 Units
Steel (Kgs) per Transformer : 3 Kgs
Total Steel required for Production Order: 300 Kgs (100x3)
In the process of manufacturing of a Transformer Steel or Core winding is the first process step.
Even though the Steel required for above said Production Order is 300 Kgs, the minimum issuable lot size from stores is 2000 Kgs.
Is it possible in SAP ECC 6.0 that the Steel of 2000 Kgs is issued to a Cost Center / Work Center, and later charged to production order based on actual Consumption in the said Cost Center / Work Center.
Regards, Replies and Sugestions shall be appreciated
Madhu

Thank you for the reply,
However, the scenario that i had in mind was a bit different from what you had conceptualized.
Scenario - These transformers are basically for loading on to Inverters & UPS, The max weight of the transformer range from 15-30 Kgs. and they dont have an external casing of steel as seen on Indian Electricity Board transformers. Multiple production orders are processed at a single time in the Plant as per Customer specifications.
The general process followed for manufacture is as follows:
1. Core Winding u2013 This process takes place in the core winding department. Steel reels are loaded on to Winders and individual cores of approx 5 u2013 30 Cm Diameter are produced. (Multiple reels of Steel are stacked one on top of the other onto a pallet.) Usually issue of steel from stores happens pallet wise. The pallets of steel generally weigh in excess of 2 tons.
In the present situation (Non SAP Environment) the entire pallet of Steel is issued to the Core winding department and later the Output is charged to multiple Production Orders, based on the records of the Core winding dept. Since in general the steel content in the FG ranges from 3- 25 Kgs multiple Production Orders can be catered to from one Pallet of Steel.
2. Core Laithing. The wound cores are laithed so as to make the sides smooth.
3. Core Annealing u2013 Heat treatment process.
4. Core Insulation. u2013 Insulation of the annealed cores with insulating material.
5. Primary Winding. u2013 Copper is wound as per the BOM Specification. The issue like that of Steel also arises in the Copper winding process. Here also the Cooper comes in Spools which far exceed the requirement for any Production Order. The minimum issueable lot for Copper from Stores is one Spool. The current practice followed is that the Cooper is taken in the name of the Copper winding department and later charged to individual Production Orders.
6. Primary Soldering.
7. Mid Insulation.
8. Secondary Winding
9. Secondary Soldering
10. Shielding
11. Final Insulation u2013 Same issue with insulation too, since the insulating material comes in rolls.
12. Testing.
13. Potting & Drilling - Process of pouring a chemical compound in the center of the transformer, which helps the transformer to later be loaded on an Inverter. The same issue with like of Steel, Copper & Insulation arises here too, since the chemical compound comes in big containers capable of meeting production requirement for a week.
14. Packing
15. Transfer to FG Inventory.
One of the suggestions was to issue the entire 2000 Kgs to the Production Order and then return 1700 kgs after completion of the Production Order based on actual usage. However, in my opinion this option might not be practicable because, assuming that I get another / multiple Production orders in between the issue of 2000 Kgs and return of 1700 Kgs, issue to the new Production order will not be possible if the stock in stores was only 2000 Kgs initially. In case assuming that the material is available in stores for the next production order, the situation could worsen in case of receipt of multiple production orders.
Hope, I have explained the scenario & issue being faced.
Regards
Madhu

Cost element & work center

Dear All,
What is meant by cost element.any link between cost element and work center.how to configure this.Kindly give the steps to follow.
Regards,
Devi

Hi Devi,
Cost element is Classification of the organization's valuated consumption of production factors within a controlling area.
Each cost element corresponds to a cost-relevant item in the chart of accounts.
Primary Cost element & Secondary Cost element.
Primary cost elements are like materail costs, personnel costs, energy costs... where a corresponding GL account exists in FI..to allow costs to flow...
Secondary cost elements are like production costs, material overheads, production overheads, they can be created and administered in only CO. These are used in internal cost allocation, overhead calculation, settlement transactions., it does not flow to FI...
I don't think there is any link between Cost element and Work Center.
If useful reward.
Regards,
Santosh

Derivation of Funds Center from cost center for Asset PR/PO in FM

Hello Experts,
We configured new FM area and relevant BCS settings. It is working fine except PR or PO for Account assignment category A.
Issue: system is not able derive funds center from cost center in the asset master. cost center is not updated in EBKN table for Asset PR.
we have maintained the following;
1. Funds center is activated in Asset account assignments
2. Maintained derivation rule with function module: FMDT_READ_MD_ASSET
3. Derivation rule for cost center to funds center also maintained
If maintain funds center manually in PR it is working fine and consuming budget also.
Requirement: How derive funds center from cost center assigned in asset. I have verified all tickets raised in this forum, but nothing has answered my question.
Request you to provide solution for above issue.
Thanks in advance for support.
Regards,
Chalapathi

Hi Venkata,
You have two derivation rules, first related to Asset function module and second one is related to CC and FC combination.
You need to maintain the function module derivation rule first then you need to maintain the derivation rule related to combination of CC and FC. Because first you need to derive CC from asset master and then you need to derive fund center with reference to this CC.
Regards,
Ankit Agarwal

COPA derivation for thecombination of Cost center and Cost element/GL accou

Hi Gurus,
In COPA derivation using KEDR i am trying to make a derivation for the
combination of Cost center and Cost element. Here i got following problems
While posting FI document using t.code FB50 system not automatically
updating the fields Cost center and cost element in Profitability
segment. Hence system not posting COPA document. How can i make this
derivation? Is there any note should i apply regarding these.
How can i create cost element as characteristic.
If i configure derivation for the combination of Cost center and cost
element will it be posted with copa document for postings or automatic
postings from MM,HR and FI
Pls provide me solution at the earliest.
Thanks and Best regards,
Dhanumjaya.Ranga
Mobile: - 919940093579
Mail : [email protected]

Hi Murali
Thanks for update
I explain my req clearly
For me segment is Distribution channel field (EXPORT and DOMESTIC)
If GL account is 1000-2000     always                      Export
If GL account is 2001-3000    and Cost center is     X then Export.
If GL account is 2001-3000    and Cost center is     Y then Domestic.
Based on above REQ i am making derivation using KEDR T.code.
These postings should work for all modules postings such as MM, HR also.
Actually this should work automatically and after saving the transaction we should have copa document also.
But problem is in source fields of derivation we have GL account (HKONT) and Cost element (KSTAR). I am making derivation using either of these.
But after posting document system not giving COPA document.
I found the reason is at GL postings we are giving input to GL account (HKONT) but we took in KEDR source field as GL account (SAKNR). GL account (HKONT) is not updating GL account (SAKNR) field in PSEG screen in Fb50. Even i try with cost element (KSTAR), GL account (HKONT) is not updating this in PSEG screen in fb50.
If GL account (HKONT) updates either GL account (SAKNR) or cost element (KSTAR) at the time of posting FB50
Or
If we have the field GL account (HKONT) as source field in KEDR i hope my problem
Get solved.
If you want further info pls give me your mobile number then i ll call you

Responsible cost center vs Cost Center

I was wondering what cost center takes prevalence over the other when creating a maintenance order the Responsible cost center vs Cost Center. The Functional location has its own Cost center “Responsible cost center” as well as the Work Centers that are assigned to people “Cost Center”. When creating Maintenance orders I have orders that use the FL work center sometimes and other times it uses the Work Center. I really need the FL to take priority over the WC if that is possible. Any suggestions?

Hi Lynn,
There is a bit confusion in your query.
To make it clear, Responsible cost centre comes from work centre for operations, where the cost is calculated based on the activity / cost centre assignment in KP26.
Cost centre in Technical object will be responsible for settlement. When the settlement rule is created, it will be assigned as receiver object and work order cost is settled to this cost centre.
Hope this helps.
Thanks
Terence

Cost Center and Profit Center Planning

Hi,
I have one Co issue. Pls Suggest me the wiseful solution.
Cost Center and Profit Center Planning.
For F-2008 Planning data they have updated in the month of Aug, 07 for Profit and Loss Items and they have revised the plan data of some cost elements in the month of oct, 2007 (say 5% Increas). when comparing the cost center report to profit center report, both are not matching. the reason when i see and reconcile the document nos and values in between cost center and profit center reports i found out that there are some documents are missing in the profit center report.
wherever plan data had revised e.g for cost element Salaries they have updated 100000 Planning cost in the month of Aug, 07. In the month of Oct, 07 increased 5% i.e.5000. In cost center line items details i found 2 documents for Rs.100000/- and Rs.5000/- But in Profit Center Line Items i am getting only Rs.5000/- Value Document.
Note. As and when KP06 Plan data has been updated Profit Center line items are generating. It is not necessary to run any programme inorder to transfer Plan Data from cost center to profit center.
Observations From My Side:-
I tried to run the transaction code 1ke0. i have selected the cost object is Cost Center, version and had given Cost Center Parameter in development and quality clients and executed the same.By this time already existing data either deleting/ riversing and creating new documents fully except manually changed data in profit center through 7ke1.
My Question is
1.Upto what extent it will work.
2.will it be possible to transfer data from cost center to profit center only missing documents which are available in cost center, without disturbing of existing data in profit center.
3.suppose if i done this activity, there are some data which was already transferred from other cost objects like internatl orders & wbs elements to Profit Center. will the data get disturbed (deleted/riversed).
Pls suggest me the wiseful way to solve the

Hi
Try This
BAPI_COSTCENTER_CREATEMULTIPLE
BAPI_COSTCENTERGROUP_CREATE
BAPI_PROFITCENTER_CREATE
BAPI_PROFITCENTERGRP_CREATE.
Regards,
V.balaji
Reward if usefull

Cost Center and Cost Element Hierarchy and Actual Cost Center

In Bex - Right now I am displaying Cost Center and Cost Element hierarchy with 12 months of data. I want to display the actual Cost center number next to cost element hierarchy - Can I display in Bex?
Tried to with Structure creating formula variable for Cost Center using replacement path - didn't work. Can you please suggest me how i can achieve this?
The format should be
CostCenter H1 CostElement H1 CostCenter Jan Feb ...
Thanks in advance and appreciate for any help...

Let me explain it clearly and hope it is clear now...
Designed the report as like this - Cost Center Hierarchy by Cost Element Hierarchy for 12 months of data. But Business agian search in R/3 for actual cost center numbers based on above two hierarchy nodes.
I am trying to achieve this Bex instead of going back to R/3 - so that they can understand how the dollar amount is summed up on which major cost centers.
If I remove the hierarchy on Cost Center - it will display all the cost centers. They want to see the Cost center numbers based on CC and CE hierarchy node so that you are displaying only those cost centers. That's the reason I am trying to design the report with CC Hier, CE hier, Cost Center number and 12 months of data.
In my data model - have only one Cost Center, if i can create another ZCOSTCENTER same as 0COSTCENTER - May be I can achieve this. still looking for options with out changing the design.

Responsible Cost Center and Profit Center in a Maintenance Order

Dears,
I would like to know what's the real influence that responsible cost center and profit center located in the
"add. data" tab in maintenance order has when I confirm a labor (through the IW41) and settlement an maintenance order.
Best Regards,
D. Quint.

D Quintal,
When you perform a confirmation (IW41) the cost centre assigned to the work centre is credited, and the order debited.
This work centre cost centre may be the same cost centre as the responsible cost centre in the order...
PeteA

Difference between Cost center and profit center

I need to know what the difference is between a cost center and a profit center eg. A work center has both a cost center and a profit center. What do they collect for that particular work center.
Thanks

hi tefo
differenc is whatever the cost involved will be collected both to the cost center and profit center, when we settle the order it will be settled in the cost element for cost center. the cost will be reflected in profit center which is assinged to the particular cost center.in profit center you can cpature revenue also which is used to map the profit loss for the concern, where as cost center will only capture the expenses
regards
thyagarajan

Need to take cost center assessment cost to product

Dear All,
We have product costing activated in our system. We are taking Raw material , packing material cost from Material master. where as activity cost based on different activity type defined on relevant work center / resource based on certain formula.
Now for some other expenses like power / utility cost, we have created assessment cycle, through which we assess the cost to relevant cost centers based on certain base (SKF).
Now our business requires this cost to load on product cost which is laid on cost centers through assessment.
Pls suggest the way to achieve the same through product costing.
Thanks & Regards,
Taral Patel

Dear Ajay,
Thanks for reply.
As per my understanding below mentioned points I need to consider for costs which is coming on cost center through assessment (based on SKF) as I want to take them to my product :
I need to create seperate activity types for those expenses which I want to take onto my product.
I need to assign them onto my work center / resource.
I need to create a Splitting Structure in OKES and assign respective secondary cost element to the relevant above newly created activity type.... With this, the amount in secondary cost ele would be divided by the relevant activity type ONLY
(Choose splitting rule/method as "!2" i.e. Activity Qty in OKES)
I need to assign my production cost centers (through which I want to transfer cost to my product) to this splitting structure in OKEW.
I need to map sec. cost ele. of above created act. type to co. comp structure.
Suppose I have one power plant at my plant campus. I am distributing this power cost to my 4 different plant (existed on campus) on their respective cost centers Ctr1, ctr2, ctr3, ctr4.
Now as per above understanding when I can see this newly created activity cost to my product cost?
For that I need to assess power cost to all 4 plants and then running my product cost with these newly created activity types?
Pls correct me in my understanding.
Thanks & Regards,
Taral Patel

Cost Center and Profit Center in NewGL

Dear all,
We defined new customer fileld in the NewGL for spliting the document number. Everything works fine! We have only one problem.
Afer posting a new document we see the cost center and Profit center in the classic GL. When we change to NewGL is this fields empty. Is there any customizing to do here?
Thank you!

Thank you very much for the information. I allready had inserts this fields. Problem here is
we have a new customer field in NewGL ZZPMS. This field is not availible in table FAGL_FIELD_MOVE. Therefore I get a dump in RGIMOVV0.
Now my question: This customizing is only to assign a costomer field ZZPMS to a profit center or a cost center, ect. . This mean, I will get in the NewGL the value of my ZZPMS in the profit center and cost center incase of the original values. Is this right?
Thank you

Profit center in Cost center master data

dear sap expert,
I have cost center (1100) with validity period 01.07.2010 to 31.12.9999.
and a profit center (1000) with validity period 01.07.2010 to 31.12.9999.
User want to extend the cost center from 19.08.1982.
First, I change the validity period of the profit center so it became 19.08.1982 to 31.12.9999 .
But when I create cost center 1100 again (KS01) with different period which is : 19.08.1982 to 30.06.2010, system give an error message " Changing profit center from to 1000 is not permitted " when I fill up profit center field (which is 1000).
Can you help how do I deal with this error?
regards

Changing profit center from to 1000 is not permitted
Message no. FAGL_ORG_UNITS011
Diagnosis
You want to change the profit center from to 1000. However, this is not permitted because transaction data either already exists for the account assignment object or could exist at the time when the change takes effect in the system. Changing the profit center in this instance can lead to inconsistencies in FI.
Examples:
1. There are costs on a cost center (WBS element) to which profit center A is assigned. If the profit center in the cost center master record were now changed to B and the costs then distributed to other cost centers, the currently assigned profit center - that is, profit center B - would be credited. Profit center A, however, would still have a debit posting.
2. There are not yet any costs on a cost center to which profit center A is assigned. For this cost center, an additional time slice needs to be created for a future period with profit center B. However, there is always a chance that transaction data continues to be entered in the cost center until the time when postings can be made to the affected period. This can lead to similar inconsistencies as those described in point 1.
System Response
The action is terminated.
Procedure
If you want the change in profit center to be possible, you can convert this error message into a warning message. You do this in the IMG activity Change Message Control (work area FAGL_ORG_UNITS, message number 011).

Cost center/work cost center

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