Direct labour and material

Hi,
Overhead expenses are all costs on the income statement except for direct labor and direct materials.
May I know why direct labour and direct material not cost in income statement?
thanks

Hi:
Direct material and direct labor are the cost that can be easily identified in production process. Direct material and direct labor are termed as prime costs ,when combined with overhead costs makes total manufacturing cost. Overhead costs being indirect cost of manufacturing e.g indirect labor (administration ,selling and management payroll costs),depreciation, utilities cost can not be directly attributed to production process,hence planning is done and activity rate is determined for each cost area so that it can be given its share of cost based on the usage.
Regards

Similar Messages

Using Items for direct labour

I sell direct labour (service engineers etc) both as time & material jobs and as fixed priced jobs. As SAP B1 does not have any job costing my work around is to set each engineer as an Item master and book the number of hours worked on any job as you would if selling widgets i.e 5 hours work/5widgets sold.
I use 'sold only items (with no cost) for my fixed price sales and by posting, say, 5 hours to the sales order I at least get a sales invoice which shows gross profit after deducting 5 X item cost/hourly cost from the 'sales only' item.
It gets a lot more detailed with me having to journal the payroll and match it against all the items of labour I've posted but hopefully you get the idea.
What I'd like to know is there any one else out there that uses direct labour and needs to reflect their cost and sales value, gross profit etc and balance it back to the actual oayrol costs etc
Any help woulld again be gratefully appretiated and even bribey comes to mind. LOL

Martin,
As far as I know standard system functionality only allows for standards to be setup to track labor costs. If you want specific employee costs (actuals from payroll) you would need an ISV product. I don't know of any manufacturing add-ons that give this functionality but Enprise and Navigator's Project One give you this functionality for project-based companies.
Aaron

"product cost flow in direct labour CK11n"

Hi Gurus,
In Material cost estimate with quantity structure CK11n cost of goods manufacturing COGM direct material cost is capturing. But in cost of goods sold COGS is not capturing. What is the procedure for direct labour and expenses for individual costing. From FI to CO and how it will capture in cost sheet and CK11n.
Thanks in advance
jaya

issue closed

Activating Direct Posting to G/L Accounts and Material Accounts

Hi,
Can anyone plz tell me with some examples ,what is the relevance of this ,'Activating Direct Posting to G/L Accounts and Material Accounts'.
Link for this is as below :
spro/Materials Management/ Logistics Invoice Verification / Incoming Invoices / Activate Direct Posting to G/L Accounts and Material Accounts
Whether normally everyone will use this or not ?
regards,

Sandeep
In Logistics Invoice Verification, you can also post invoices that do not refer to a purchase order or a delivery. A typical example of this is a bill for expenses.
As in the case of an invoice with a reference, you first need to enter the header data and the vendor information.
In contrast to invoices with a reference, the system does not display any proposed values for the invoice items, since it cannot determine any purchase order items and posted goods receipts for this invoice. As a result, the system does not know which accounts are affected by the offsetting entry for the vendor line item. Therefore, you must specify which accounts the amounts are to be posted to. The SAP System provides the following options:
Posting to a G/L account
You post to G/L accounts if you, for example, want to settle small amounts for freight costs and similar items and do not want to add these to the material accounts or cost accounts for the invoice items.
Posting to a material account
You post to material accounts, if you, for example, want to debit or credit a material without using a purchase order reference
You can also combine these options by generating the relevant posting lines one after the other, or by generating lines with reference to a purchase order.
When you enter an invoice without a reference, you may find that a vendor has not been created in the system. You can post this invoice to a one-time account.
You can have activated this functionality if you want to post directly to GL account and material.
Hope this clarifies
Thanks & Regards,
Sridhar

Activate Direct Posting to G/L Accounts and Material Accounts

under configuration if we tick on "Activate Direct Posting to G/L Accounts and Material Accounts"
then what would be the impact?
Thanks & Regards
Nitin Gupta

Hi
When u tick "direct posting the material" material tab will be available in MIRO screen ( along with PO reference )
here u can post invoices w/o reference to PO directly material account
Check info Given by SAP
If you have activated posting to material accounts in Customizing, you can enter invoice lines without a PO reference on the Material tab page. These lines are then posted to the given material when you post the invoice
When posting directly to a material, no posting is made to a GR/IR clearing account. The system posts manually entered material lines directly to the stock account or a price difference account, depending on price control and stock coverage
Vishal...

MIRO: Activate Direct Posting to G/LAccounts and Material Accounts

Hi,
To which table does the following customising write to:
IMG/Materials Management/Logistics Invoice Verification/| Incoming Invoice/Activate Direct Posting to G/L Accounts and Material Accounts
Thanks
-S-

TCULIV
Regards.

Planned cost for int labour and non stockable material not visible

Hey gurus,
While creating an order with a material, ext service, non stock material, I am able to see the planned cost for materials in stock and ext services procured. But i'm not able to see the planned cost for non stock material and int labour. However i'm able to see the actual cost for all the items. I think I have missed some config. Please help.
Regards,
Abhishek

Hi,
As said by Pithan there is a problem in costing variant for planned cost which you have assigned to prder type at plant level.
Problem underlies within valuation variant assigned to costing variant.PM01 is your costing variant here.Check diiferent heads within valuation variant for this costing variant.There under activities tab what is calculation parameter you have selected.If it is blank you will not get any internal activity cost.You need to select at least one from dropdown like cost from previous period or avaerage cost etc.Then you will get planned cost for internal activities.SAmething applies to non stock material.
Check in OKP6 for all these and make sure that you have selected at least one cost calculation schema there for activities and material and external.
Regds,
atul

Direct labour cost

Hello all,
I want to capture direct labour cost and raw material cost in COPA where i can map the value field to capture it.
Suggest.

Hi Prem,
You have a seperate component in COPA where you can do this configuration and attach all the components of the cost component structure of the the cost estimate to be flown to COPA.
Normally we take COGS from VPRS condition type in SD and attached it to COPA condition type.
But when you need a details cost break up of the product cost, then you need to do this particulat configuraion
Menu path: IMG>Controlling>Profitability analysis>Master data>Valuation-->Setup Valuation using material cost estimate
The configuration steps are:
1. Define Access to Standard Cost Estimates
2. Assign Costing Keys to Products
3. Assign Costing Keys to Material Types
4. Assign Costing Keys to Any Characteristics
5. Assign Value Fields
Once you do this configuration, you will get the details break up that can be used for Contribution statement in COPA.
Best regards
Surya

Limit PO - Confirmation with Time and Material

To All:
We are in SRM 7.0 - Classic Scenario and ECC 6.0 EHP4.
We implemented the use of Limit PO in SRM to enable us to create a PO for Services that will give us the Value Limit and Expected Value functionality. In our scope the Limit PO can be confirmed in SRM for Time Entries and Material(s). Unfortunately we can only enter time and if we add material by clicking Add Item dropdown and choose As Free Description. We are getting an error message Inconsistent Parameter During Method Call after we enter the item type as material and the of measure as ea.
We did not implement SUS and if we do it in ECC through ML81N transaction, we can create Service Entry Sheet with time and materials.
Any direction on how to resolve this issue is appreciated.
Thank you all very much.
Mike

Hi
to understand SAP design funtionality . not to solve your issue
Note 502176 - Confirmation for mixed Backend goods/service purchase order
Symptom
1. When you enter a goods/services confirmation, the system displays the same purchase order several times in the search result.
2. When you expand the service purchase order item in the search, the system displays the material items.
3. When you create a confirmation for the "material portion" of the purchase order, the system proposes the services of the first service purchase order item.
Other terms
eCommerce, Enterprise Buyer professional, EBP, BBP, B2B, BBPCF01, BBPCF02, BBPCF03, BBP_CF, SAPLBBP_CF, Backend, service
Reason and Prerequisites
You enter the confirmation for an (R/3)-Backend purchase order which contains both material items and service items.
Solution
Ad 1:The display in the search result is correct!
An entry is generated in the search result for EVERY service item. In addition, ONE other entry is generated for the total of all material items.
Background:You cannot post any mixed goods and service confirmations in the R/3 system.
Every Backend service purchase order item can include one or several service items as well as a limit, however, which are NOT broken down in the search result.Ad 2 and ad 3:Implement the attached program corrections.
Muthu

MM02: Updating characterstics in PO text and Material description

Hello Experts,
I have a requirement wherein, I have to update the characterstics of a material
to the Po text and Material description as soon as they are changed in MM02.
At present there is a custom program doing the same,but I need to automate it,
directly from MM02.
Please help me with your views.
Thanks,
Sumit Mittal.

Try using the customer exit EXIT_SAPLMGMU_001 for this purpose.
Good Luck!
-D

Direct posting to material

Dear all,
I have actived Activate Direct Posting to G/L Accounts and Material Accounts in Spro --> Materials Management --> Materials Management --> Incoming Invoice --> Activate Direct Posting to G/L Accounts and Material Accounts --> Dir.posting to matl = active.
when I use tcode miro --> subsequent credit --> enter material A, plant, valuation type into MATERIAL TAB, the system only suggests the quantity in the stock but I want it suggests the total of quantity of material A which was procured, For example:
I procured A 100 pcs and sold 60 pcs, quantity in stock 40 pcs. When I input in material tab, the system only displays quantity is 40 pcs but I need it is 100 pcs. How can I do that?
PLEASE HELP????
Edited by: Luong Kieu Thi on Jul 11, 2011 1:03 PM

Since only 40 is stock, only for that quantity subsequent credit can be posted otherwise, you cannot have a balance in FI postings. So if you need to post on 100 PCs, then the only choice for you is to cancel the issue of 60 PCs, then post the subsequent credit on 100 PCs and then redo the issue of 60 PCs again.

Oracle equals_path condition NOT working with table and materialized view

The user i am using is xdb with dba role.
1.When i try to use the statement
SELECT PATH FROM xdb.path_VIEW
WHERE
EQUALS_PATH(res, '/home/OE/PurchaseOrders/2002')=1
the result is
/home/OE/PurchaseOrders/2002
2. When i drop the path_view and recreated it like materialized view with statement
create MATERIALIZED view path_view as
select /*+ ORDERED */ t2.path path, t.res res,
xmltype.createxml(xdb.xdb_link_type(NULL, r2.xmldata.dispname, t.name,
h.name, h.flags, h.parent_oid, h.child_oid),
'http://xmlns.oracle.com/xdb/XDBStandard.xsd', 'LINK') link,
t.resid
from ( select xdb.all_path(9999) paths, value(p) res, p.sys_nc_oid$ resid,
p.xmldata.dispname name
from xdb.xdb$resource p
where xdb.under_path(value(p), '/', 9999)=1 ) t,
TABLE( cast (t.paths as xdb.path_array) ) t2,
xdb.xdb$h_link h, xdb.xdb$resource r2
where t2.parent_oid = h.parent_oid and t2.childname = h.name and
t2.parent_oid = r2.sys_nc_oid$
then the equals_path condition STOP working !!!
3. The same experiment, but i recreate it like table
create table path_view as .... using the rest of the statement ...
Can someone help me to understand why equals_path is NOT working on table and materialized view !

Thanks Jonah. I was under the impression that I already had it but seems like it has to be a direct priv - thru a role doesn't work.
I granted the reqd privs and then it worked fine. Thx for your help!

Direct procurement and Indirect Procurement in SAP AFS

Hi,
Can you diffrentiate between Direct procurement and Indirect Procurement in SAP AFS.
thanks
Aki

Hi Aki,
Direct Procurement
Raw Material and Production Goods
Order Qty: Large
Value: Industry specific (Like shirt in apparel industry)
Direct procurement supports the conversion of planned requirements to purchase orders.
Primary Processes-Direct Procurement
1. Determination of the materials and services required.
2. Create requisition.
3. Request for the quotation.
4. Quotation Management.
5. Vendor selection.
6. Create Purchase Order.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
Indirect Procurement
Maintenance, Repair and Operating (MRO) Supplies
Order Qty: Low
Value: Generic (Machine Spare Parts in any industry)
Indirect procurement supports the purchasing of indirect materials and subcontracting.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning and the handling of internal deliveries.
The cross-plant, internal procurement of materials can be carried out within one company code (intercompany) or by using several company codes (cross company).
Primary Processes-Indirect Procurement
1. Requisitioning
2. Purchase Order Management
3. Receiving
4. Financial Settlement
Hope it helps.
Regards,
Anirban Roy

Direct Purchasing and Indirect Purchasing in AP ?

Hi Experts
Please let me know what is direct purcdahsing and Indirect purchasing inlcuding the T codes and what are the implications in both cases on FI?
Thanks in advance and points assigned accordingly.
Meenakshi.N

Dear Meenakshi,
We can relate indirect purchasing & direct purchasing to PO based material procurement & with out PO based procurement resp.
In case of indirect purchasing, a procurement cycle starts from generating the PR -> PO -> Goods receipt -> Invoice verification.
Where as in direct purchasing no PO is generated & invoicing is done directly in FI.
Hope this of help to u.
Regards,
Ajay

Direct Procurement and Indirect Procurement

Please explain the different between direct procurement and Indirect procurement??

Hi,
Direct Procurement
Raw Material and Production Goods
Order Qty: Large
Value: Industry specific (Like shirt in apparel industry)
Direct procurement supports the conversion of planned requirements to purchase orders.
Primary Processes-Direct Procurement
1. Determination of the materials and services required.
2. Create requisition.
3. Request for the quotation.
4. Quotation Management.
5. Vendor selection.
6. Create Purchase Order.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
Indirect Procurement
Maintenance, Repair and Operating (MRO) Supplies
Order Qty: Low
Value: Generic (Machine Spare Parts in any industry)
Indirect procurement supports the purchasing of indirect materials and subcontracting.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning and the handling of internal deliveries.
The cross-plant, internal procurement of materials can be carried out within one company code (intercompany) or by using several company codes (cross company).
Primary Processes-Indirect Procurement
1. Requisitioning
2. Purchase Order Management
3. Receiving
4. Financial Settlement
Hope it helps.
Regards
KK

Direct labour and material

Similar Messages

Maybe you are looking for