Machine Hours

Question

Hi Guruu2019s,
Currently in one of our plants in Czech Rep we are costing material in local currency (CZK) but the activity types/ machine costs are set up in USD.
So when GR for finished goods are produced, the absorption is using the machine hour costs in USD and the conversion / exchange rate used is kinda weird.
We are now trying to set up the MACHC in SAP in CZK (because all the budget calculation leading to MACHC for the year are also done in CZK). This will be more transparent for any analysis and for absorption too and would avoid any eventual discrepancies coming from any exchange rates.
We use the transaction KP26 to input the total capacities for the production lines in hours and to put MACHRC per hour for every production line.
In KP26 if you go to settings - set planner profile. We are currently using planner profile SAPALL. I noticed a couple of profiles were set for local currency. So I tried to use both of the layouts.
I first changed in KP26 the machine hour costs for Cost Center XXXX from 1315,35 USD to 100000 CZK.
As example I can used a product YYYYYYY, which is a pebble product produced on Cost Center XXXX.  The Machrc calculated in the Std price for this product before I made the change were 458,64 CZK / 100 Eas.
After this change took place the cost for Activity type in KP26 this increased the Machc calculated in the Std price for this product  to 573,34 CZK / 100 EAs.
I thought that the calculation should be: (Machrcosts for 1 hour for the CC) * (routing for 100 EAs) = (Machcosts for 100 EAs)
Before I changed the layout example :
1315,35 USD  * 1,058 MIN = 458,64 CZK/100 EAs
(don`t know which exchange rate is taken from here u2013 because when I take 23530,48 CZK displayed in KP27 as converted value for 1315,35USD the result should be 414,92 CZK/100 EAs)
After the change I am getting:
100000 CZK * 1,058 MIN = 1763,33 CZK/100 EAs
But if i gt to that material YYYYYY and look at the cost tab the calculation is 573,34 CZK/100 EAs.
Do you have any idea, what could be the issue? Maybe some additional changes must be done in KP26 and KP27 after changing the layout not just the overwriting of the value Machrcosts?
Thank you in advance for your time and help.
Best regards
Yasmeen
Edited by: YasmeenBhatt on Dec 30, 2009 3:42 PM

Answer 1

Hi Thess,
Just to make a point, I suggest you to do planning KP26 and KP06 and run KSPI to get the activity prices. If you do this, it not only serves your purpose of maintaing activity prices, but also, helps you in getting the variance reports and cost center level.
Now, if the activity prices of depreciation and other overheads need to get multiplied by the no. of machine hours, (obviously there must have been one activity "machine hours" to capture the production cost), you can create seperate operations (dummy operations with dummy work centers and dummy activities assigned to them) for these overheads. (even you can use all the activity types in the same work center in the same operation).
Once the user confirms the activity "machine hrs" (with 5 hrs for example) for operation in CO11N, the same number of hours can be defaulted for other operations also...(like depreciation etc in your case).
Pls talk to your PP Consultant to do this.
Srikanth Munnaluri
Edited by: Srikanth Munnaluri on Mar 8, 2009 11:57 PM