Labor COsts

Hi all,
In a make to stock product costing scenario :
1) How does the labor costs and material overhead costs reflected in FI side.?
2) Do we need to run any specific steps for these secondary costs to reflect in FI ?
We collect these costs using Activity types and then how does this flow in to FI.
Thanks,
Sai.

Dear,
WEmake cost elements/value categories for your requirements(like internal labour, external labour, overheads etc.) Also he will make activity type for ur requirement like: activity type : Labour hours.
U can also try this with T-code Ka01, Ks02, Kp26, Kl01.
The assign cost element to value categories...in SPRO.
Also assign this activity type in ur work center(cost center tab).CR02
And in order cost tab , u will see the labour cost.
Then we calculate variance WIP and settlment .
Regards,
R.Brahmankar

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Settling Labor costs

Hi Experts,
How do you settle any labor costs. I have created a secondary cost element and tied it an activity type. In the work order I enter 2 hours of this activity. Can I settle these costs from a secondary cost element to a primary one?
Thanks

HI,
once it is secondary cost you cannot bring it back to primary cost.
Best regards, Christian

How to handle labor cost?

Dear All,
Scenario:
I have a finished component ;an assembly of 3 items,how to handle the labor cost i am paying for assembling in SBO.
could you all please write in detail .
Thanks,
Nandakumar

Hi Nandakumar,
you could have a look at this Expert Empowerment Session:
PDF:
[18.05.2007 - Moving Average Price calculation - effects of Rounding|https://websmp203.sap-ag.de/~sapidb/011000358700000418832007E/KP_MAP_in_BOM.pdf]
Recorded Webex
[18.05.2007 - Moving Average Price calculation - effects of Rounding|https://websmp203.sap-ag.de/~sapidb/011000358700000415572007E/CW20_FIN_moving.wrf]
There is an example involving a BOM with integrated labout costs.
& also this Wiki:
[How to include labour cost in a BOM. |https://wiki.sdn.sap.com/wiki/display/B1/Howtoincludelabourcostina+BOM.]
All the best,
Kerstin

Material & Labor Cost separate in Report

Hi Experts,
i have some list of orders now i want to track the Material and labor cost separately.
Is there any standard report for the same.
Regards,
Kavvya

Normally cost analysis is done by order type wise, plant wise & palnner group wise with respect to technical object(FL/Equipment). If you club all order then you will not have any meaning ful analysis. As such one report for material consumption(goods movmt in order) is there -IW3M.
You will have to develop customise report (use table PMCO)
Shakti

DBM labor cost in the pricing

Dear Friends,
We plan to use DBM Time Management . When the technician clocks in time, the labor cost hits the internal order correctly. But, the same cost doesn't hit my labor cost condition type in the pricing. Due to this, my profit center in the billing is wrong.
What am I missing here? Couldnt find any documentation regarding this
Appreciate your help
Best regards,
Shafi

Hi
if you want to have your profit margin on the SD order 100% accurate this is the only way but this will have a big impact on performance. As normally labor rates don´t differ so much I would recommend to create a condition type where you maintain the average labor rate. This gives you a profit margin as well but not as accurate.
In CO PA you get the right figures but normally you don´t do this order level
regards
Stephan

How to export material/labor/non-labor cost?

When I import a xer file to another computer, the cost of the material and labor cost were zero.@

Hi Ryan,
Please see: Budgeted Costs Are Not Imported Correctly When Importing An XER Into A Different Database (Doc ID 897284.1)
Regards,
Pablo
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Actual labor cost

Hi
how system calculate actual labor cost in product cost by order?
i am sure i entered actual activity quantities to the production order but it is picking planned price to calculate labor cost of an operation
thanks and regards
somashekara

Did you calculate actual activity prices in TC KSII?

Project closure - labor cost from WIP to COGS a/c upon closure

Dear Projects experts,
We are implementing v12.2.3, In Oracle PA, for a specific project type, our business users want labor cost first charged to a WIP Cost a/c, and upon closure of the project, the cost should be moved to a designated COGS a/c. Is there a way to achieve this? Do we need to do any extension/customization? Can this be done in SLA custom rules? Thanks a lot for sharing your ideas/suggestions.

This is CLR exception. You cannot just LoadLibrary the managed library. The error code is the generic well-known code and means, again, CLR exception.
There is no easy fix (options are hosting CLR (I would not recommend), etc.
- Sergei meleshchuk

Labor cost

Hello ...I'm Jun from Korea!! I use to get some useful information through your advice~~~
Again ~~~~ I would like to ask someting to you ~~~
we use P000 condition type as a purchase price~~~
and I want to konw, is there a condition type for labor cost ?
I want to control the labor cost by Material~ (Purchasing Material Case)
(but It should not be effected to PO) only for some specific Roport for calculation someting ...
So, If it is, I'll register all labor cost by material and make some Report for our purpose.....
Please give some advice for me~~~
Thanks ~~~

Hi,
You can use standard condition type 01BE - Gross Price Contract or 01CT- Price (Contract/Bid) and same you can configure in Pricing procedure (M/08) while creating PO you can use these condition type.
Or you can copy the stand P000 and rename and configure in Pricing procedure (M/08) it will works.Hope this helps you
Regards

Labor Cost - PM Order

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

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

Hide Labor Cost

Hi, I hope somebody can point me to the solution: in 7.4 with the old GUI enabled, how can I hide the hourly labor costs? Goes without saying, it's thoroughly unprofessional for individual hourly rates to be visible to team members (it's a violation of standard HR policy, also).
(Please don't point me to an old plugin, thanks.)
This topic first appeared in the Spiceworks Community

Thanks for reply. However, they are not using standard cost. They are using Moving average cost for every items, but it's not calculated by warehouse. See my first posting for the setting we made.
I tried: in the authorization setting -> inventory -> price list -> "price in the price list: %s, will be up" configured as "no authorization". It works (item cost displayed as *** in the item master) but SAP inventory reports e.g. inventory status report cannot be run after configuring this.
Understand it can be masked off using SDK Add-on. Any idea of doing it without running additional add-on?

Revenue, Labor Cost and Hours

Hi All,
Does anyone know which extractor(s) will give me the info about Revenue, Labor Cost and Labour Hours. These numbers are posted thru PS and eventually landed in CO tables.
Does anyone know about these?
Thanks in advance.
Alex.

resolved.

PM Labor Cost

PM Experts,
Pls explain to me where can i input the labor cost of a plant maintenance order in such a way that it will reflect in the cost center once i settled the order.
Thank you

hi
you dont want to input the labor cost,it will be automatically calculated based on the hours you mentioned and the cost of the activity you maintained in KP26
regards
thyagarajan

Reconciling labor costs with GL

Hello,
I have an issue reconciling labor costs with GL.
The report "Generate Cost Accounting Events Report" shows the total amount for labor cost transactions as $10M
wheres after running the "PRC Create accounting" the journal posted in GL is only $9M.
How do i find out the discrepencey of $1M. Are there any reconciliation reports available to compare the transactions between GL and PA.
Note: There is no data in gl interface and there is no exceptions reported in distrubute labor costs ,and cost accounting event reports

Looks like there might be $1MN not accounted, check for expenditures labor and trying to do a export from expenditures inquiry screen for a date ranges and then compare with the report data
also looking for any exceptions, run the exceptions report detail request
Thanks
Krishna

Missing Labor Cost during distribution

Dear Dina,
Oracle HRMS is not tracking the Contingent workers salary info.OTL not in picture.In this scenario, in oracle projects Contingent labor hours being updated.
Rate schedule does not contain contingent labor hourly cost....
How to go about it....is it advisable to stop entering contingent labor hours from projects or Supplier cost interface wud get the cost to projects...Pls help me...
Thanks a lot in advance...

Hi
It is not clear what is the exact scenario and what are the requirements.
Oracle does support a solution that integrates HRMS, Purchasing (service procurement), OTL and Projects. With that solution, the labor hours are costed based on the hourly rate defined on the purchase order. The labor transactions are the source for automatically creating a supplier invoice, that you have to pay. The generated supplier invoice should not go back to Projects.
If you don't have OTL, you might mimic the solution by some customizations. If you are not using the service procurement of Purchasing designed for contingent workers, then you would need to build an entire custom solution.
Dina

Labor COsts

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