019_F&A_MN_SDCPL_COST_05022020 (Welding Improvement)

019_F&A_MN_SDCPL_COST_05022020 (Welding Improvement)

Useful: For all Sales/F&A/Operations/Production/Welding

 Dear All, 

Owing to the fact that our welding division which is giving service to clients and is generating revenue for the same for which we only have a track of cost but relatively low visibility on the utilization and the revenue that it was generating.

We have done configurational changes in SAP by which we will have visibility into Welding as follows:

  • Welding Revenue
    • Direct Sales wherein welding is billed separately to the client
    • FOC wherein the cost of welding is loaded on to the price of other materials in the SO – Welding to be shown separately as a line item with a number of days and rate “0”. Overtime to be always charged extra.
  • Welding Cost by accounting-related expense in the welding specific cost center.
  • Utilization in terms of whether the welding division is making a profit or not and by having a record of days and hours clocked in SAP
  • Overtime beyond the normal shift of working.

 

New Welding service code and its usage:

Service ID

Service Description

Product Category Description

UoM

Usage

WELD_0012001600

Welding Service Range from 1200 to 1600

Welding Services

DAY - Day(s)

Normal Shift of 9 hours incl lunch break of 1 hour

WELD_00315500

Welding Service Range from 315 to 500

Welding Services

DAY - Day(s)

WELD_00500630

Welding Service Range from 500 to 630

Welding Services

DAY - Day(s)

WELD_00630800

Welding Service Range from 630 to 800

Welding Services

DAY - Day(s)

WELD_008001200

Welding Service Range from 800 to 1200

Welding Services

DAY - Day(s)

WELD_OT

Welding Overtime

Welding Services

HUR - Hour(s)

For overtime

How it will work?? Example Attached

Please let us know in case if you have any queries.

Thanks & Regards,

Piyush