Settlement: Example
The following example illustrates the creation and processing of an order from the point of view of order settlement.
The Order
In a clarification plant, three pumps are to be cleaned in the pumping station. All three pumps are installed at the same functional location.
Planning and Planning Data
The planner creates an order, enters the functional location C1-B01 (pumping station) as a reference object and enters the three pumps in the object list. The order is to be settled to the pumping station cost center, which has the number 511. This means that all the costs posted to the order for cleaning the three pumps will be settled to cost center 511 when the job is complete.
The order data comprises the following:
Data on the Performing Work Center "PSC" (pump fitters) |
Entry |
Number of persons performing the job |
2 |
Performing cost center (= cost center of the employees performing the job) |
909 |
Activity type |
Cleaning |
Planned number of work hours per person per pump |
1 |
Cost of activity type per hour |
$ 150 |
Total planned work hours |
6 |
Total labor costs |
$ 900 |
Data for Scheduled Material |
Entry |
Consumption posting to the amount of |
$ 150 |
Releasing and Processing the Order
Once the planning stage is complete, the planner releases the order for processing.
The employees from work center "PSC" start the work:
They withdraw the material scheduled for the order from the warehouse. Actual costs of $150 are incurred for the order and are debited directly from the balance sheet account.
The employees confirm the length of time they worked on the order. It took them a little longer than planned, so that the resulting actual costs posted to the order are $1050. These costs are credited to the performing work center.
Situation After Completion of the Work
After the work has been completed and the order settled, the debits are as follows:
Balance on the order: |
$ 0.00 |
Debit to the receiver cost center 511 (pumping station): |
$ 1200.00 |