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Author's profile photo Gia Duong Luu

Setting Cost Rates for executing Service Employees

For controlling purposes, companies need to know about the exact costs of service orders.

Service orders can consist of several service items that are executed by different executing service employees that have varying hourly rates. Therefore, it may be necessary to make the cost of a service item dependent on the service cost level assigned to the executing service employee.

Examples for service cost levels:

· Senior consultant – 50 USD/hour

· Consultant – 45 USD/hour

· Associate consultant – 40 USD/hour

The costs of a service item are determined when the respective service confirmation is set to completed. An SAP S/4HANA timesheet (CATs) is created for the different executing service employee and cost postings are made for the working hours that have been recorded. You can check these costs in the Service Orders – Actuals app.

In the following, you will learn how to setup a scenario as described above:


1. Creating a service cost level:

2. Creating a cost rate for a service cost level

3.Assigning a service cost level to an employee

Note: as of release 2108 you have to use the app Employment-Workforce instead of Employee.

Once you have setup your scenario, you can run the business process as shown here:

Subsequently, you can check the posted costs using the Service Orders – Actuals app:

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      Author's profile photo Oliver Lange
      Oliver Lange

      Hi Gia

      Do you know if the service cost level logic can also be used for Plant Maintenance orders?

      BR, Oliver