When a work order is created, settlement rule is automatically created with cost center as receiver. The functional location assigned to the work order determines the cost center.
Create Work Order: Work Order is created with respect to order type and functional location. Order type determines costing sheet, costing variant and other profiles for the work order, whereas functional location determines the cost center in the work order settlement rule.
When work center is assigned to the work order, plant maintenance control key will default and cost center to which activity cost are to be posted is determined.
When an work order is updated with the components, reservation on stocked materials and purchase req for non stock materials are created.
When activity is confirmed to the work order using CAT2 or IW41, activity hours are charged to the work order (cost receiving object) from activity cost center (cost sending object). In addition goods receipt is also performed.
Periodic processing: All the costs received to the work order has to be settled at month end after overhead calculation. Since overhead exists in the plant across work orders, a costing sheet is maintained with percentage rates to apply overhead to the work orders. Run transaction KGI2 to apply overhead to the work orders. At settlement, actual costs and overhead are settled to the the receiving cost center.
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