Usually, it is the requirement from most of the clients to do Revaluation of Plant Maintenance Orders at Actual Prices wherever PM Module implemented.
In this document, we will cover how to revaluate plant maintenance orders at actual prices and their settlement to relevant cost object.
Revaluation of PM Order at actual prices is quite difficult to understand due to its complex process.
I tried to keep this complex topic in simple words.
In below example, I’m going to explain entire process from the start, which includes multiple steps that needs to execute by the business controllers. These steps include creation of cost centers, creation of activity type, plan activity rates, creation of plant maintenance order, confirmation of activity hours on pm order, settlement before revaluation, actual price calculation, revaluation of pm order and settlement after revaluation.
Let’s explain the above stated steps:
1. Create two cost centers, one will be used as Sender in which resource will perform activity and second cost center will be used as Receiver cost object which will maintained in settlement rule of PM Order. Kindly ignore the cost objects description as these descriptions might not be realistic.
SDR_HA (Sender Cost Object/Work Center Cost Object)
REC_HA (Receiver Cost Object/ Settlement Cost Object)
- Create activity type which will be used as activity and maintain plan activity rates with reference to sender cost center using transaction code (KP26).
- Create Plant Maintenance Order and maintain settlement cost center which we have created earlier REC_HA in the settlement rule.
Plant Maintenance Order
Settlement Rule – Plant Maintenance Order
- Maintain actual activity hours to the PM Order and then check the impact for the same on reports.
KSB1 – Actual Cost Line Item for Cost Centers (Sender Cost Center)
S_ALR_87013011 Order: Actual/Plan/ Variance
- Now settle the PM order using KO88 transaction code so that the amount posted will be settle to receiver cost center REC_HA and then review the Order report and Receiver Cost Center report.
KO88 – Actual Order Settlement
Display Accounting Document – FB03
S_ALR_87013611 Cost Center: Actual/ Plan/ Variance Report
S_ALR_87013011 Order: Actual/Plan/ Variance
Please note, if no settlement is executed before the actual price calculation and the actual price revaluation, then the service flow from the providing cost center SDR_HA to the receiver cost center REC_HA will be ignored by the price calculation. Therefore, it is mandatory to execute first settlement before actual price calculation and actual revaluation to flow the entire cost to the relevant receiver cost object.
- Calculate the actual activity cost of the Sender Cost Object SDR_HA. For this you need to debit the cost center SDR_HA with actual cost.
S_ALR_87013011 Order: Actual/Plan/ Variance
- Execute Actual Price Calculation using KSII transaction code and then check the cost center report, sender cost center will be credited by the differential amount and the receiver cost center will be debited with the same amount.
KSII – Actual Price Calculation Results
Sender Cost Center – Cost Center: Actual/ Plan/ Variance Report
Receiver Cost Center – Cost Center: Actual/ Plan/ Variance Report
- After actual price calculation, execute revaluation at actual prices for PM Order using KON1 transaction code. PM Order will be revaluated with the differential figures of actual rate calculation.
KON1 – Revaluation at Actual Prices
In below snapshots, you can see PM order is debited by differential amount which is 8000 and sender cost center is credited by the same amount.
S_ALR_87013011 Order: Actual/Plan/ Variance
S_ALR_87013611 Cost Center: Actual/ Plan/ Variance Report
Usually, questions came from the user’s that how the additional credited amount will be settled from Sender Cost Center??
For that we need to execute the settlement of PM order again. Once settlement has been executed, verify the impacts by the using the same Order and Cost Center Report. Below are the screenshots for reference.
S_ALR_87013011 Order: Actual/Plan/ Variance
S_ALR_87013611 Cost Center: Actual/ Plan/ Variance Report
Conclusion:
Thanks for reading whole document. This document describes how to revaluate the plant maintenance orders at actual prices and their settlement to relevant cost object. For any query, please mention in the comments section.
