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External Contractor and Vendor Hours

Logistics : PM and its sub-modules & SM

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External Contractor and Vendor Hours

Postby ljgershman » Mon Aug 11, 2008 3:23 pm

Hello fellow SAPpers!

I am actually an HR consultant. My client wants to be able to add hours for external contractors and vendors to PM (Plant Maintenance) work orders. I know that you can use a transaction like IW41.

Here are my questions:

1. Do I need to create external contractors in HR or can they be created elsewhere where I can post hours?
2. The client does track contractors, but their employment status defaults to Inactive. I cannot seem to add these resources to the list of employees or add hours because of the status. Is there a workaround for this?

Any other help you can provide would be greatly appreciated!!

Thanks!
Larry Gershman
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Re: External Contractor and Vendor Hours

Postby PJA » Tue Aug 12, 2008 2:52 am

Larry,

For long-term contractors it is common to create a work centre specifically for the contractor (could be individual, group or contract company).

You then create a cost centrefor the contract company with associated activity types (KP26).

The contractors then use the IW41 confirmation TCodes as any other permanent employee.

At the end of each period, the contractor invoices are compared to the cost centre postings

HR masters can be linked to the cost centre if required.

See the SAP Help

For short-term contractors, you would normally follow the standard PO process.
Pete A
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Re: External Contractor and Vendor Hours

Postby theChiel » Tue Aug 12, 2008 10:48 am

The other option for long term contractors is to create an HR mini master (I forget the profile but the number 15 rings a bell) and tie the mini master to a contract. The contactor would then charge their time through CATS which, upon approval, creates a service entry for the labor $ and a confirmation for the labor hrs. This way there is no delta between the invoice and the cost of the hours billed but the linkage between the service entry and the confirmation is somewhat loose.
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Re: External Contractor and Vendor Hours

Postby ljgershman » Tue Aug 12, 2008 11:30 am

Thanks for the advice! I'll give both of your suggestions a try.
Cheers,
Larry
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Re: External Contractor and Vendor Hours

Postby Shahnawaz » Sat Apr 26, 2014 3:55 am

Gents,

I have question related to following topic.

We have Maintenance with mixed crew. For example:

Mechanical/Electrical/Instrumentation: Each team consists of group of people including internal staff as well as permanent contractor staff. So far we have one rate defined in work center (not considered contractor rates at all).

Since the contractor is on site permanently and needs to be paid every month regardless of work on not. Contractor invoice monthly based on their agreed rate and our contract advisor creates separate PR/PO against contractor cost center and finance pays to contractor.

My questions is:
• We haven’t started using SAP work order, but contractors are being paid as mentioned above. Once we start using PM work orders, the question is how their cost will be captured considering (1 maintenace team and plannig can't decide who would perform work during planning phase)

One option is ; to have 2 different Activity types (one of internal staff and other for contractor) for single work center. During order confirmtion senior Tech could confirm who performed the job. If we do this, follow-up question comes in mind. Would this cause any issues/conflict such as duplication of cost either after order settlement or the process Finance currently uses to pay contractor relates to any duplication of cost.

Appreciate if people could share their experience for cost of Permanent contractor MIXED with internal work force.

Regards,
Shahnawaz
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Re: External Contractor and Vendor Hours

Postby PJA » Sun Apr 27, 2014 10:12 am

Shahnawaz

Please do not hijack other peoples posts - its against the forum rules.

Please create a new post and refer to any useful info.
Pete A
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