Capture Service and Maintenance Costs at Operation Level from SAP Enhancement Package 5 for SAP ERP 6.0

  • by Janet Salmon, Product Manager, SAP AG
  • December 20, 2012
Learn the settings to activate the enhanced table design functionality in SAP enhancement package 5. Discover its effect on your settlement options and the Financials reports you see. Looking at the costs per operation allows you to see the costs for each task performed for the order. Previously, all costs were assigned to the order as a whole and it was not possible to distinguish between the different tasks.
Key Concept
Operations (i.e., tasks performed as part of an order) structure the maintenance and service tasks to be performed within an order. They specify the planned time to complete the task, any spare parts needed, and whether the operation is performed internally or externally. Where the difference in costs between the various operations on an order is significant, there is a need to be more accurate in the cost assignment.

I’m regularly asked why an SAP system lets you record time and labor by operation in logistics, but not to report by operation in Managerial Accounting (CO). The questioners usually assume they are missing some critical setting in customizing and that I am able to set them straight. However, in fact the table design in CO is such that while the confirmation document records the time and labor performed for each maintenance task, the CO document records only the cost center and activity type.

Any cost analysis for the order only shows you the hours of activity provided, but not the operations for which the work was performed. Once the business knows what it is spending for each task, it can provide more accurate reports to the Federal Energy Regulatory Commission (FERC) and similar authorities and improve its internal reporting because it can understand the cost impact of each type of task.

As external and internal reporting requirements have become more stringent, maintenance costs are under increased scrutiny. Therefore, businesses sometimes need to analyze the costs for each operation separately. For this reason, you can now choose whether you assign costs at the order header level or at operation level.

Janet Salmon

Janet Salmon joined SAP in 1992. After six months of training on R/2, she began work as a translator, becoming a technical writer for the Product Costing area in 1993. As English speakers with a grasp of German costing methodologies were rare in the early 1990s, she began to hold classes and became a product manager for the Product Costing area in 1996, helping numerous international organizations set up Product Costing. More recently, she has worked on CO content for SAP NetWeaver Business Warehouse, Financial Analytics, and role-based portals. She is currently chief product owner for management accounting. She lives in Speyer, Germany, with her husband and two children.

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