Labor Sell Rate for Maintenance Customer Orders

The labor sell rate used in a maintenance customer order (MCO) is taken from the maintenance agreement set work center prices (COS414), which is accessed using related option in COS410 as first priority.

If no specific labor sell rate is set in the agreement it checks the setup in 'Labor Sell Rate. Open' (COS024). This program makes it possible to set the labor sale rate in a more flexible way. The users can set different labor sale rates based upon a user-defined matrix.

If you do not define a price for a specific maintenance agreement or in the labor sell rate program, the sales price for man and machine hours is taken from the general price specified for a work center.

This document describes how to use the labor sell rate program.

Limitations

Workflow

COS024 is used to set the pricing of a work order’s labor transactions. It is based on a selection table that is set in CMS017 and gives the flexibility to set sell rates based on certain criteria.

The selection table in CMS017 must be defined first. The selection table is a matrix where you set the selection fields that will be used in COS024 when to set the correct labor sell rate. M3 will search for the labor sell rate in priority order from top to bottom.

In COS024, the user sets up labor sell rates records using these key fields.

Priority Agreement Work Center Labor change code Labor Sell rate
1 AGR1 WC1 Overtime 1000
1 AGR1 WC2 Overtime 2000
5 AGR1 WC1 na 500
5 AGR1 WC2 na 1200

If the order with agreement AGR1 has a transaction for work center WC1 and labor code Overtime, it will find labor sell rate 1000. If the labor code is Normal it will go to priority 5 and find labor sell rate 500.

Follow these steps

  1. Set selection fields in CMS017.

  2. Set the labor sell rate in COS024 using the selection fields defined in CMS017. The labor sell rate is set for each facility.

Outcome

The outcome of this process is a flexible way to set labor sell rates to use when prices are calculated for maintenance customer orders.

Related topics