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Saturday, 7 June 2008

Impact on Business if PM Order Not Settled

What is the impact on business, if PM order is not settled. That is if settlement of the order is not done, what
is its impact on the business process.

The cost will go to G/l account as soon as the goods movement is done or service entry sheet is accepted. Only thing is that the cost will not be reflected in the cost center.

The work order is a PM cost object. It can hold costs. for example, when a time confirmation is done, and it is saved, the cost centre in the tech object is debited and the work order is credited with those costs.

What then should happen is settelment occurs and the work order is debited and the cost centre in the work order operation is credited

If settlement does not occur, those costs sit on the work order. The problem with this is that because the costs do not settle they are not transfered to the operation cost centre. In simple terms, this then means that the cost centre of the maintainers who did the work, does not get paid!

It also causes problems with reporting, and cost management from Controlling, and can significantly affect your maintenance budget (depending upon your business processes)

Posted by: aroeltsm, Updated at: 1:28 am

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