Operation Level Costing – Part 2
Hello Everyone. This is Anumandla Harikrishna working as an SAP EAM Consultant. This blog is a continuation for my previous blog. For more information about my first blog, please go through the link https://blogs.sap.com/2017/08/29/operation-level-costing-part-1/.
In this blog am going to walk through how settlement of work order can have its impact by activating operation level costing. Typically, maintenance order costs are calculated and settled at the Header level. By using OLC, this feature can be possible at the operation level. It means that, multiple technical objects with different account assignments within one maintenance order now can be settled at the operation level for each of the technical objects.
Following are the steps that are considered as prerequisites for the demonstration:
- Define OLC Cost settings at Operation Level
- Create two equipment with different cost centers
Now let us create a maintenance order with two equipment’s. These equipment’s are tied to different cost centers.
For operation 0010 with equipment 1, to view the detail cost overview, double click on line line1 and go to the Account Assignment tab
Now let’s Review the settlement rule for equipment 1,
Note the cost center generated in the settlement rule is of equipment 1
For operation 0020 with equipment 2, to view the detail cost overview, double click on line line1 and go to the Account Assignment tab
Now let’s Review the settlement rule for equipment 2,
Note the cost center generated in the settlement rule is of equipment 2.
However, the total cost of the individual operations are summed up and can be viewed at the Header level costs.