Labor Cost - PM Order

Question

Hi PM Gurus,
For my PM Orders Operations I use employees to report time. I just need to know where and how to set the automatic account posting for the labor costs. Please explain.
Cheers
Deee

Answer 1

Hi Andrew/Kedar,
There are two things we are talking here the labour cost posting happening to Order and the final settlement to G/L. Both things are totally different from FI and CO perspective.
For labour posting to Order:
1.Define a Cost Center  - KS01(which is assigned to Work center)
2.Define a Activity type  - KL01
3.Define a Cost Element - KA01. This CE is secondary CE of type 43 - Internal Activity Allocation. You assign this CE in Activity type defined above.(Usually you dont have one to one relationship between CCtr and CE, so you dont assign Cctr on Cost ement)
4.Using KP26 you define the rates of Cost Ctr and Activiy type combination.
5.Whenever time is confirmed, the rate is picked up from KP26 and cost is posted on Order. If you see the Cost element report, this cost will be reported against the CE of type 43, defined above.
FI/CO postings
When you confirmation the Cctr on Work Ctr gets credited and the Order gets debited with the cost.
For settlement to Cctr from Order
1.This is a CO settlement. We are transferring Order cost to an Cost center, which is CO posting or internal posting
2.In this case we need a  secondary Cost Element of type 21 as a settlement cost element, which is defined in your allocation structure of settlement profile. The settlement cost element could also be debit cost element, in this case you dont need to specify settlement CE.
3.When you do the settlement the Order gets credited and the Settlement Cctr gets debited with that cost.
Kedar - For your question
1.If Settlement Cctr and Work Cctr Cost ctr are same
In this case , since the source and trget Cctr are same, the Ccts gets credited initially and Order is debited. When you settle from Order to CCtr again the Order is credited and Cctr is debited. So the same is CCtr is credited first and then debited.
2.If Settlement Cctr and Work Ctr are different
In this case, the source CCtr (Work ctr Cost Ctr) is credited and Order debited with labour cost. During settlement Order is credited and Settlement Cctr is debited.
Hope this clears your doubt.
Thanks
Sarang