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Object documentationLabor Charge Code (LCC) Locate this document in the navigation structure


A code that specifies what type of labor a worker has performed during a specific block of time


Companies use labor charge codes (LCCs) to accumulate totals of how much time their employees spend performing various tasks. The company may use these totals for payroll.

You can also associate LCCs with SFC numbers. Companies may use SFC LCCs to calculate how much time was spent building each SFC number in order to bill customers.

You create LCCs and define their characteristics in the Labor Charge Code Maintenance.

You can create temporary LCCs or indicate that an LCC is obsolete or expired in the Valid To and Valid From fields in the Labor Charge Code Maintenance activity. If you change your mind, you can also override the expiration date.

When a user clocks in, Labor Tracking begins tracking the user’s time and charges it to the user’s default LCC. You can assign default LCCs for users in User Maintenance activity.

The system may use the default LCC for SFC numbers it generates when releasing SFC numbers.

You can specify the labor charge code for a shop order in the LCC field in Shop Order Maintenance, Create and Release SFC, or Shop Order Release activities. If the LCC field is blank, the system assigns the LCC in the Default LCC for Shop Orders field in Labor Rule Maintenance.

If you import shop orders through Integration, the system can use the labor charge code from your ERP or other system. See your SAP ME consultant for more information about using Integration.

For more information about setting up default LCCs, see Setting Up Default SFC LCCs and Setting Up Default User LCCs.


User LCCs are labor charge codes associated with a particular user. For example, to track the amount of time each user spends restocking, you can create an LCC named RESTOCKING.

SFC LCCs are labor charge codes associated with a particular SFC.

You must classify each labor charge as one of the following:

  • Direct

    Direct labor is time users spend performing certain tasks, such as restocking, building a product, or adding value to a product. Most companies classify the LCCs for rework and assembly tasks as direct labor.

  • Indirect

    Indirect labor is time users spend idle or performing tasks not associated with producing a product. Most companies classify the LCCs for general meetings and training as indirect labor.

You can create new labor subtypes by adding entries in the IDAT file.

In addition to labor types described above, LCC can have the following attributes:

  • Labor Subtype

  • Valid From

  • Valid To

  • Custom Data (see Custom Data)

For more information, see Labor Charge Code Maintenance.