This activity is used to define the cost type per cost category. Cost types are used to categorize all transactions (from IFS/Shop Order) that are recorded on the complex assembly work order. These transactions serve as the basis for creating invoices for a shop visit.
For the IFS/Complex Assembly MRO solution, there are several predefined cost categories. Namely, Material, Labor, Machine, Overhead, Purchase, Tools Equipment, and Other. For the Material cost category, several cost types can be defined by combining the values of the following fields: Ownership, Condition Code, and Life Limited.
When a transaction is generated for the complex assembly work order, the relevant cost type in basic data is set on the transaction. For example, if condition code-enabled material is issued to an MRO shop order, and a cost type exists in basic data that fulfills the cost category, condition code, and ownership of the part, that cost type will be set on the transaction history entry. If a valid cost type does not exist in basic data, a cost type will not be set on the generated transaction history entry. In such cases, once the basic data is updated, the Determine Cost Type option on the complex assembly work order can be used to set the cost type on the transaction.
It is recommended to set up a unique cost type per cost category (including the additional information for material). When non-unique cost types exist in basic data, it will impact how the cost type is set on the generated transaction history entries.
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As a result of this activity, the cost type is defined for each cost category.