Kumar,
Assume that man hours (Labor cost) is an activity which will happen in the plant premises, which may use in production department and other maintains activity in machine premises, So in SAP if you want to track these expenses during the month, you will book all the expenses to a common service cost center, in the month end utility department will give the actual labor consumption in each department along with production department, So costing user will post the actual SKF quantities to receiver cost centers in KB31N and will create a distribution/Assessment cycle and distribute the cost proportionately.
Assume that total Labor cost booked on the common cost center is 100000$ and actual consumption in 4 different department s are 4000 hours, then the cost distribution logic is like below.
SKF Quantity | Distributed cost |
2000 | 50000 |
500 | 12500 |
400 | 10000 |
1100 | 27500 |
Total 4000 100000
Regards,
Ravi