Estimated Costs, Planned Costs and Actual Costs in a SAP

 

Estimated Costs, Planned Costs and Actual Costs in a SAP?

For the purposes of this answer, regards to a plant maintenance order.

Also, in this answer "costs" equal job cost in resources, including internal labor, external labor, stock and non-stock components, rentals, etc.

Estimated costs would be manually calculated costs. You may see this figure manually entered on the header of a PM order. You would use this figure for decision-making in advance of planning.

Planned costs are the total costs calculated after detailed planning of resources.

Actual costs are the total costs incurred during/after execution of the work order, including time confirmations (internal labor), sevice entry sheets (external labor), material issued to the order from stock (reservations), non-stock materials received (GR), and other costs such as rentals.

Cost flow in maintenance orders:

1. Estimated costs is an approximate value, entered during creation of maintenance order. This value is for information purposes only and will not be validated anywhere.

Estimated cost: You can enter this cost manually in order Header.

In Header Data -> Costs while creation of Order.

2. Planned costs is when external procurement of spare(non-stock)/services are required, they are entered in the maintenance order. The spares will have cost in material master.

Planned costs: After Confirmation of operation, service etc cost will reflect.

Service cost is entered manually while creation of maintenance order. These costs are calculated when the order is brought to Release status, and appear as planned costs in the costs tab.

IW41 & IW42 are used for confirming the task/operation with the time. This will accrued the cost of internal operation to the order.

3. Subsequent purchasing activity PR to PO conversion is done and when the material is inwarded, the actual cost as per PO, flows to maintenance order and populated as Actual costs.

Same case happens when service entry sheet is created for external services.

4. Now the cost sits with the maintenance order. This must be settled to a cost center, assigned to the equipment, for which maintenance order is processed.

When actual settlement is done for the order, the actual cost moves to the cost center and the order value becomes zero. This activity is required from FI Controlling point of view, to accrued the total expenses done on the equipment and adding them to the production cost incurred, using that equipment.

Actual costs: After settlement actual cost will appear.These cost can be viewed at Costs tab of Order.

KO88 is the only way you can do the actual settlement.

TECO as name implies, is technical completion of the order and associated notifications.

You will be able to do KO88 even after TECO.