Labour cost calculation

Hi friends,
Can anyone telll me how the labour cost is calculated in a production order.
Regards
Vivek

HI
First of all Labou is to be defined in SVK in Work center then as the activity type that is assigned to cost center which finally assigned to the work center. Now the cost can be defined for labour hrs as the activity price maintained in KP26 for tha activity labor multiply by total labor.
The total labor hrs can de defined in formula as labor*operation qty/ base qty
Check and revert
Regards
Anupam Sharma

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Actual labour cost calculation

Hi Gurus,
IN KP26, we have fixed lab hrs.From Table S027,we are getting lab cost for a particular production order.My user do not want lab cost and they want to delete it and lab hrs should be remain as it is
in configuration.
Pl advise how we can remove labour cost from our configuration.I there any T.code for that.
Regards,
Samar

Hi,
In KP26, Do not maintain Fixed and variable price, But maintain only labour hours. U can go directly to KP26 and remove the fixed and variable price.
Regards,
Sreekanth

Settlement of labour cost from sales contract order to CO-PA

Hi Gurus,
Could you please explain how the calculation is made while settling the labour cost from sales cotract order to CO-PA.
Thanks and Regards
RC

Hi,
Basically the labour cost will be contained in a cost element. When you settle the sales order to COPA your settlement profile will contain the PA transfer structure where the cost elements are mapped to the value fields. Accordingly the labour cost will flow into the value field in COPA.
regards
Waman

How to bring the labour cost into costestimate

Hi friends,
How to bring the labour cost into costing run, please let us know. i have given the configuration settings but i am not able to get the accurate result. so friends please help me on this.
where were i have to give the config settings and the links please tell me.

Dear,
The cost sheet format is,
1. Material cost,
*2. Labour cost -
SPRO -> Controlling -> Product Cost Controlling -> Product Cost Planning -> Basic Settings for Material Costing -> Overhead -> Costing Sheet: Components -> Define Calculation Bases*
1. Here just check whether you have assigned the Labour cost Cost elements with Labour group or not.
2. T Code - OKTZ : Check whether you have assigned the Cost elemnts here or not
3. Labour cost is based on : Activity types and Cost center figures updation in KP26
Let us know if you still need any help
Thanks
Edited by: nkonnipati on Feb 15, 2012 4:01 PM

How to calculate labour cost ?

Dear All,
              In my scenario one operation i.e. winding. in winding operation i have take set up time 12 hr. , machine time 48 hr., and labour time is 48 hr.as per calculation system show correct cost for that order. but in that operation i have used three (3) labour but in production order cost view only one (1) labour cost showing. how the three labour cost is showing.
         Thanks ,
          Parag

Hi Parag........
Is your per hour cost for labour is fixed?
Regards,
Rahul

Labour cost for Assembly

Dear my friends,
Please advise me in below case :
We do assembly service ex : from PC + Windows into PC with Window installed.
I need to manage labour cost for assembly job, please help to show me the way (step by step).
Thanks

Hi,
First of all you need to calculate the labor timings required for the Job to be performed.
You need to create cost center in KS01, Secondary cost element for labor in KA06 and Activity type for labor in KL01. Assign this Activity type to cost center with proper rate per unit in KP26. Ex. If your unit of labor is Minute, and your rate for the labor is say $1 per min, then assign it in KP26. You can take help from your CO consultant
Now you need to create the Work Center with Labor Category in transaction CR01. Then assign proper standard value key, which contains the labor as a parameter. Assign newly created Cost center and Activity type with proper other parameters in Work center Costing tab.
Create Routing for that material in CA01. Assign this work center to it with proper operation timings.
When ever you confirm the production order, enter the actual timings required for the job. system will do the calculation in the background. Ex. If you required 30 min. for that operation, your cost of that job will be $30. This will be post in the system after settlement.
Hope this will clear your doubt. If further assistance required then please revert.
Regards,
Hiren

Labour hour calculation in confirmation

Hi,
I have a scenario where one employee is assigned common to two capcities of one work centers.
While taking up production of two products in a same work center in two capacities how the labour hour would be calculated. Example:
Work center : W001, No.Of Individual Machine Capacities -2
No.Of Individual Labour Capacities -1.
Two Production orders released in work centers for the same time. One order is run for 6 hrs in a shift,another order is run for 8 hrs in the same shift(Means upto 6hrs both were in parallel,then last 2 hours only one order was ruuning),Labour performs both the orders in parallel as he manages both machines. How much is the labour time to be entered in CO11N confirmation for each order.

Hi,,
U can see the labor cost.But prior to that u have to mention the workcenter in the order and in work center u have to mention capacity of work center and mention the formula for cost calculation cost.all this have to first configure in work center prior to use in any order then order give u cost of the Labor according to Ur Order time confirmation your timing should be 6 hrs and 8 hrs as there are two order we want to calculate the cost of each order.
Regards,
R.Brahmankar

Bom Component qty & WIP Quantity differ at Trget cost calculation

Dear gurus,
i am facing the problem with WIP at target cost calculation in REM.
My issue is
BOM Component qantity is 9.524 TO and price is 2000 then total cost is 9.521*2000=19048.
but in WIP Report kkas in WIP explation it takes input qty 9.52 T0 and price 2000 then total price is 19040.
Difference is 19048 - 19040 =8
and also when i am issuing actual qty i.e 9.524 in BOM then my price is 19048.00 ant at time of variance calculaton then quantaty variance as 9.52.0-9.524.0=-0.04 then 0.004*2000 =-8
Please suggest solution for this.
Any OSSS NOTE Required
any Quires please revert back
REGARDS
Avinash.pegarlawar

Hi
Rounding differences between target and actual values and quantities are not unlikely to occur and cannot always be avoided but can be minimized.
Small prices and price unit of 1 are likely to cause more of these rounding differences..
The actual credit is simply calculated as price * quantity. The target credit however is calculated during the variance calculation
and based on the sum of all items in the itemization/cost components of the cost estimate and therefore more accurate.
To avoid this I suggest to store the material price with a larger price unit, i.e. 1000
Std cost release stores price upto 2 decimals and target cost calculation goes upto 3 decimals...
Please check also the note 1265918 for more information to this topic.
Regards
Ajay M

How to create the generic data source for Labour costs report in BI (actual& plan costs)?

Hello Guru's
My requirement is to get the total labour costs in BEx analyzer.So i need to create custom DS for that. But i am not sure about the FICO tables which are having the Labour info..
I'm having the GR10 report from R/3 sidepls look at the document. But i am not sure about the report, how that built,and giude me on the report.
Please help on this to going forward.

Hi,
There are COOM data source which may suits your needs.
please check data source
0CO_OM_WBS_6
0CO_OM_WBS_3
Base tables are COSP and COSS.
Check about coom data source, if not suitable then go for custom data source.
About table cross verify with your source team.
Thanks

Report to display Mat Cost Planned Labour Cost and Over head cost

Hi Abapers,
Greetings of the day..
I need a Report that Display Material Cost , Planned Labour Cost,Actual Labour Cost and Over head value
where do i start from and what are the tables involving in this report..
if already done this A code snippet is more helpful...
Thanks In Advance...
Thanks & Regards
Sathish

Assuming you are talking about Maintenance Order.
Use table: PMCO.
Here the line with field VORGA having value KPPS gives the Planned Costs of the Order in the field WRT01.
Similarly, the line with field VORGA having value RKL gives the Actual Costs of the Order in the field WRT01.
Also have a look at Tcode KKBC_ORD.
Jogeswara Rao K

Actual Cost Calculation in Process Order

Hi All,
I updated Standard cost of a raw material through a cost estimate and also ran cost estimate of the FIN that is using this raw material but when I am creating a Process order, it is taking the cost of this particular raw material from the previous estimate not the recent one to calculate the target cost. Can any body help me with this.
Thanks
MKR

Hi Ashok,
My Valuation variants for the Costing Variant of Cost Estimate and Production order (Actual/Plan) cost calculation are in Sync to get the prices according to the price indicator in material master. But when it calculates cost for a production order, it is picking up cost from the previous period for that particular raw material. I have updated the standard cost by running the cost estimate but still its not working.
Any lead on this. This will be really appreciated.
Thanks
MKR

Target cost calculation in Process Order based on Variance Calculation

Hi all,
I have a question on Target cost calculation in Process Order. My understanding is, the Target Costs gets calculated when the confirmation and GR is made for the Process Order.
But if the confirmation/GR is not done, whether the target costs gets calculated for only the activity types after the Variance Calculation (KKS2).
I have two scenarios. In one, the target costs got calculated for the activity types without the confirmation/GR after the Variance calculation.
In another scenario, the target costs are not getting calculated for the activity types without the confirmation/GR if I try to do the variance calculation in KKS2.
SO i want to know which scenario is correct?
Can anyone answer this question?
Thanks and Regards,
Brijesh

Hi,
In general, the target costs are calculated once you deliver the order.
Target costs for the components and the activities are updated only once you deliver the order and the target cost for the finished product gets updated when you do the variance calculation.
Consider your scenario number 1 - you said the target costs got calculated for activity types without confirmation / GR after variance calculation.
Now, if the order is not having any status like PDLV, DLV or TECO it will not calculate the variances in the first place.
Your second scenario is correct - without GR the system does not calculate any target costs. Also it will not calculate any variances because the order status is still not DLV.
Best Regards,
Sameer

Shipment Cost Calculation

Dear All,
I know that tariffzone plays a role in determining the price for the freight/Service Agent condition in case of outbound shipment cost calculation
I have the following query in Shipment Pricing.
Can anyone please explain whats the role of the 2 postal code columns in the tariff zone assignment?
Also how & where I have to maintain the data for determining the tariff zone which I have assigned to the above combination.
Please help.
Regards,

HI Dave,
Thanks for the response.
Please note that I have maintained postal codes in my Shipping point also in my customer master.
For the combination of TP Point, Service agent, Shipping type & Country I have made the following assignment.
I have given my shipping point Postal code in both the Postal code columns of Tarff zone assignment (say Tariff) & my customer master Postal code in both the Postal code columns of Tariff zone assignment (say Tariff1).
Now I have maintained the condition records in TK11 for the combination of Depart. Tariff zone/Destn.Tariff zone/Service Agent i.e. Tariff/Tariff1/Service Agent
But my condition record value is not getting determined & when I simulate my shipment cost I am getting the following error message.
Shipment costs not yet calculated
Shipment costs item 000001 w/ ref. to doc. $0001 item 0001
Message no. VY104
Goods types directory could not be determined
Message no. VW803
Please help to reolve this issue.
Regards,

Weighted avg Unit Cost calculation for COGS

Hi friends,
Has any body done weighted avg unit cost calculation for inventory valuation and COGS calculation. In a way we need to mirror ECC material ledger functionality based on the APO data in side the planning tool.
Any ideas on the above!!!
Kind Regards,
Krish

Hi Jerry,
Thanks for the tip. I actually needed to clean the spreadsheet up and put bogus values in to comply with company policy. Anyhow, here is a sample of the spreadsheet
http://dl.dropbox.com/u/7499586/junk.png
Just imagine about 100 products and several hundred raw materials, a dozen types of labor and about 30 types of packaging. It's a monster spreadsheet.
The "units" under each product is the number of units per batch. You can see each product has two columns. One where you put in how much of a raw material, package type, and labor type go into each batch, the next calculates the cost for each item. Then it gets summed at the top for the total unit cost for that product.
Let me know if you have any other questions about it. Thanks so much for your help!

How to define routes for freight cost calculation

Hi,
in our company we plan to use LE-TRA Transport with Freight costs calculation. To use Transport it is a must to maintain routes in all sales orders/deliveries. Currently we do not use it and now we have the challenge to define routes and later due to freight costs calculation Stages. There are different solutions for routes. In some other companys we have only routes dependent on the Transit duration, but that's all. They don't use stages and they don't use freight cost calculation in SAP.
As I know routes should describe geographical locations (The way location A till location B). Based on the route we have a defined stage with a distance, shipping type.... That would mean for a company: They need to analyse all delivery channels with different forwarding agents and so on. Is that possible when the forwarding agent is responsible for scheduling? That means for a company with customer around the world thousands of routes?
Alternatively it is possible to create stages in the transport documents. Is that more recommendable? It would be nice, when someone could post his experience with that topic.
Thank you,
Raphael

Hi Luis,
thank you for the response. My problem is not the technical view. I know how to create the routes and what kind of information I need. The problem is to unterstand how this concept can operate in practise in a company with many different customer.
The following site describes the concept of routes in SAP:
http://blog.tkreddy.com/2010/09/17/understanding-the-concept-of-routes-le-shp-in-sap-ecc-6-0/
A company with many delivery plants and customer around the world needs to forward all delivery channels they have to us, A route describes an area and includes stages with location A and B. The stages are assigned to a forwarding agend. Based on that information I can start a freigt cost calculation. The structure of stages and routes also depends on the situation how many different forwarding agents are involved in a delivery process.
In my opinion it is really a big effort to find a reliable solution for the amount of routes and stages. I am thinking about to use the solution to create the stage manually in the transport document and to use the routes to describe the transit time.
Raphael

Labour cost calculation

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