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

Similar Messages

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

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

Settle AUC costs to Asset Master Record

Hi,
Can any body tell me where the error has occured when i am settling AUC costs in Project to asset master record via the transaction AIBU.
   The exact error message is:-
BALANCE IN TRANSACTION CURRENCY
Message no. F5702
Diagnosis:-
The balance has occured in transaction currency " ZAR"with the following details:-
Exchange rate '00' amount '2000' and currency key 'ZAR'.
The data in transaction currency was transfered from the calling application.
System Response:-
Your data cannot be processed in FI.
Procedure:-
The error is probably in the calling application.
   Thanx in advance.
Regards
Santosh
Message was edited by:
        Santosh Singh

Hi,
In my view its because of the difference of amount between two currency is not been settled. Most of the company maintained same using T-Code S_BCE_68000174 on-line or manual. Please check the updating happening properly or not.
Enjoy SAP.
Dont forget to give points if its useful ans.
Namskar,
Ketan Dave

Settle Secondary Cost from WBS to AUC

Hi Sapiens,
Business Requirement --> Budget Control for all Material Procurement, thereafter settlement of cost thus booked under WBS to AUC or Asset as the case maybe.
Current Setup --> Material/Inventory/Balance Sheet A/c has been made Statistical i.e. CE category "90". This is enabling AVAC during procurement and budget control. However when trying to settle the WBS it is NOT settling, error - "no cost available to settle".
How to resolve the matters.
Regards,
GM

Here is what SAP help says for cost element category 90:
90: Cost Elements for Balance Sheet Accounts in FI
Automatically assigned when you create cost elements in CO whose general ledger accounts in FI are asset reconciliation accounts (special balance sheet accounts), not income statement accounts. You cannot change this category in CO master data maintenance.
FI does not require CO account assignments to cost elements of category
90. However, if you enter an account assignment, it is only recorded statistically for true objects.
Category 90 cost elements enable you to check the budget of an order or project when you acquire fixed assets that can be directly capitalized. To do this, enter the capital investment order or the WBS element in the corresponding field of the asset master data. Asset Management (AM) ensures that the specified order or WBS element is automatically entered in the document during the asset acquisition.
In CO the order or WBS element is debited statistically. This statistical debiting is checked by the system using the budget during availability control.
Notice the words in bold above. Apparently, CE category 90 is when you acquire fixed assets that can be directly capitalized. You need to specify the WBS element in the corresponding asset master data.
I think your candidate is CE category 22.
22: External Settlement
Used to settle order costs, project costs, or cost object costs to objects outside of CO. These objects could be assets (Asset Management), materials (Materials Management), or general ledger accounts (Financial Accounting). The R/3 System creates an accounting document when the costs are settled.
Cost elements of this category cannot be used for settlement within CO (cost centers, orders, projects, and so on). Use secondary cost element category 21 for this purpose. The system does not create an accounting document when costs are settled within CO.

How to settle project costs to AUC

Dear Experts,
Please teach us how to settle project costs to AUC.
Your response is very much appreciated.

Refer below link
http://help.sap.com/saphelp_erp60_sp/helpdata/en/2a/f9f56e493111d182b70000e829fbfe/frameset.htm
Venkat

Wbs settlement to cost center

Hi Gurus,
We have project sysyem, FI and cost and profit center accounting.
We are booking cost and revenue on wbs and then we are settling it to cost center.
Do we really need to settle to cost center what is the need and what is the correct process???
Thank you

Hi Mohit
It is against SCN's rules to post the same discussion thread twice. You have already posted a similar question in the below thread. Please refrain from doing this and close one of the threads.
Initial balance upload of revenue GL accounts with wbs
Regards
Sowmya

Plant maintenance order settlement to cost center

Hi,
I have a requirement from the client that PM order costs should be settled to Cost center (real) and credit the order line with statistical cost center.
1. Consumables GL is debited at the time of goods issue with refrence to PM order , cost center is not updating in this line item
2. Settlement rule maintained as cost center receiver which is mentioned in the PM order and after settlement consumables GL is getting credited with Order and debit to cost center mentioned in settlement rule , statistical cost center is not updating in credit line
My client requirement is
Statistical cost center should update along with Maintenance order at the time of goods issue for consumables GL (Debit)
Statistical cost center should update along with maintenance order at the time of settlement for PM order (Consumables GL credit with statistical cost center and maintenance order and the same GL debit with settlement receiver cost center (real)).
If i provide cost center in account assignment at the time of Goods issue , system is updating the cost center along with order , however at the time of settlement both cost center and order are not updating in credt line item and the cost is lying in the order without settling.
Please advise any configuration setting or user exit to meet the above requirement.
Thanks,
Sreedhar

Hi Ravi,
Thanks for the update.
If i give the cost center in acct assignment in MB1A it is taking , is there is any option to default the cost center either from PM order or thru some other setting.
I have tried both substitution and OKB9 , however system is not defaulting the cost center from this settings.
Please let me know if there is any other option to default the cost center in MB1A.
Thanks,
Sreedhar P

At the time of settlement of cost collector, I don`t see right FI entries.

HI,
at the time of settlement of cost collector, I don`t see right FI entries.
Сost collector is confirmed, WIP is calculated, variance is calculated. Cost collector has status VCAL.
Cost collectors saldo = 3000,00
WiP = 3500,00
Variance = -500,00
and it is right. But at the settlement I see
Factory Output (Cr.) & Price diff from Prod (Dr.) 3000
Where are WIP and Variances???. I don`t imagine any reason why system don`t see WIP and variances by settlement.
Best regards,
Yuy
P.S.
ML is active.
Edited by: Yury Pogorelov on Jul 5, 2009 9:59 PM

HI,
If there is more GI and less GR, system calculates WIP and values are posted to WIP G/L. That will be reversed to Cost object on next day of WIP run. This will not be considered for Settleemnt.
Variance is the calculation of actual and plan. That is just a calculation and nothing to do with any accouting entries.
U have got some 3000 in price diff. account and that has come from diff betweeen actual G/R and material master price of the material.
Vijay

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

Without Production order confirmation How to settle the cost of prd order

Dear all,
How to settle the cost production order with out production order confirmation.Any setting is there Or program.
Regards,
Naresh Redddy.

Dear Naresh,
To settle the cost of production order, you need not to confirm it. But on the same time if you want to settle the order when its not confirmed then WIP amount will be posted. WIP value will be posted if your order does not have DLV or TECO status. In your case, if you not confirmed the order, only material cost if any issued for order will be calculated, no activity cost will be calculate. And if you want to post the variance then order status needs to be either DLV (Completely Delivered) or TECO (Technically Completed). Here also the cost of activity will not be considered as you didn't confirmed the order.
So if you want to settled the order without confirmation, then Activity cost will not be added in your settled cost. So your product costing will not be accurate.
Please revert if you have any other doubts.
Regards,
Hiren Ramani

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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Material item number for Settlement Material Cost

Dear All,
My client want to see the line items for settle Material i.e. he needs materials item number and qty for settled material cost in perticular project / WBS.
Thanks and Regards,
Atul R. Rajmane

Dear Nitin,
Thanks for Replay.
CJI3 report give actual cost line item. For settle values its will show cost but not material number. My Client needs the material number and qty for settled value of material cost.
Specifically, he need an WIP report which shown material number and qty berak for WIP amount of a specfic project/wbs.
Thanks and Regards,
Atul R. Rajmane

Settling Labor costs

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