Customer needs to analyses material, labour and OH cost in project connected shop order separately in the project monitoring. So, I followed below steps in 25R1 environment.
Create the posting cost group as Labour, Material and OH and connected to respective cost bucket
Connect 3 WIP GL accounts for M40 posting using control type posting cost group
Then create the shop order connecting to project and release the shop order. Then it appears cost breakup correctly in Project monitoring page
Screen Preview 1 - Shop Order is in Planned Status
Screen Preview 2 - Shop Order is in Released Status
However, once I close the shop order all cost shown under one cost element
Screen Preview 3 - Shop Order is in Closed Status
Is there any additional setup that we need to do or is this the normal system behaviour?
Appreciate if anyone can give insight on this
Best Regards
Narmada
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Hi,
You need to verify your set up on the project cost element - driver. This is defaulted to an account (account drives the cost element) or it can be any code part.
Based on what you describe, it’s probably based on the account.
When a shop order is closed the WIP values flow to a single inventory account. Given in your example, the cost then flows to a single cost element, it appears that you have a single GL account (for M1) when the shop order closes to inventory.
To have separate cost elements (when using GL account as the cost element driver) you need different accounts for most posting types, so that you can control the cost elements.
This is exactly the reason why IFS added the functionality to allow different code parts to be the driver for the cost elements. Usually, if we have a client who does significant shop orders, and needs the cost break down in the project in different elements, we suggest one of two options. Option 1) suggest shop order cost is reported as shop order cost element (single element). Option 2) use a different code part to drive the project cost element. If acceptable, option 1 is easier, you still have engineering and other cost elements, just shop order is a single element. And Option 1) does make sense from a project perspective as when managing a project, the manufacturing process is commonly outside the project management. It kind of makes sense, to keep shop order separate. If option 1) is not acceptable, then you must use option 2 (different cod part driving the cost element.
When defining the code string we must have a conversation with the client asking - what is the best driver for the cost elements.
Please review your set up, for this and the code part value mapping per cost element. This was not included in your posting, - I assume you're using the account.
Best regards,
Thomas
Hi,
You need to verify your set up on the project cost element - driver. This is defaulted to an account (account drives the cost element) or it can be any code part.
Based on what you describe, it’s probably based on the account.
When a shop order is closed the WIP values flow to a single inventory account. Given in your example, the cost then flows to a single cost element, it appears that you have a single GL account (for M1) when the shop order closes to inventory.
To have separate cost elements (when using GL account as the cost element driver) you need different accounts for most posting types, so that you can control the cost elements.
This is exactly the reason why IFS added the functionality to allow different code parts to be the driver for the cost elements. Usually, if we have a client who does significant shop orders, and needs the cost break down in the project in different elements, we suggest one of two options. Option 1) suggest shop order cost is reported as shop order cost element (single element). Option 2) use a different code part to drive the project cost element. If acceptable, option 1 is easier, you still have engineering and other cost elements, just shop order is a single element. And Option 1) does make sense from a project perspective as when managing a project, the manufacturing process is commonly outside the project management. It kind of makes sense, to keep shop order separate. If option 1) is not acceptable, then you must use option 2 (different cod part driving the cost element.
When defining the code string we must have a conversation with the client asking - what is the best driver for the cost elements.
Please review your set up, for this and the code part value mapping per cost element. This was not included in your posting, - I assume you're using the account.
Best regards,
Thomas
Thank you very much. Yes, I added Account as the base for cost/revenue element and in this scenario, it is better to use another code part as base for cost revenue element.
