Fixed Rate regardless the actual working hour

[Deis Cross]

Hi, PM Experts,

My Clients required two types of Labor Cost

1. The Standard Cost which depends on the actual work when we confirm the maintenance order
example: the activity type rate is $5.00/hour then during confirmation the actual work is 4 hours = 4 * $5.00 = $20.00

2. The Fixed Cost where no matter how long you work, the rate will be the same.
example: the activity type rate is $5.00, so if I confirm the maintenance order, the actual work hour won't determine the actual labor cost. it will be always $5.00 even if you're working 10 hours, 12 hours etc...

So for number 2, is there any way to do that?

Thanks
DT

[psquare]

Hi,

I supose in 2nd scenario you still want to see hoe many hrs were spend on the job?

This is difficult to arrange:
you could confirm 1 hr with rate $5 and lets say, 10 hrs with zero rate (zero is not possible so a very low rate you should have 0,01).

[Deis Cross]

Hi Psquare...

Yes, you are correct...

they still want to get the total working hours for work center performance report....however, they want the cost to stay the same no matter how long it takes to finish the job.

Its like doing external services (control key PM03), where we can determine the service price for one activity unit (AU) then we pay the vendor based on the negotiated price in the purchase order and not by how many hours the vendor took to finish the job.
But can we implemented that in internal activities??

[PJA]

DT,

I'm pretty sure this can be done using activity types

Talk to your friendly FICO team regarding fixed price in KP26

[theChiel]

Looked at that a while back and ended up posting a confirmation without an activity type and a complementary FI/CO document for the cost. A real pain :

1. Two entries are required.
2. The costs are decoupled from the activity
3. (following on from 2...) you have to remember to reverse the complementary document document when cancelling the 'work'

[PJA]

Stewart,

Hope you're keeping well..

I'm sure we have done this in one-step before but I can't remember how...

My only advise is to talk to the accountants, or post the question in their forum

PeteA