Cost in SAP PM (S/4HANA) — The Only Explanation You Actually Need
In PM, everyone talks about cost… but very few consultants truly understand how cost moves inside a maintenance order. If you want to be taken seriously in S/4HANA projects, you need to know the three cost layers and how they behave. Here’s the clean crisp clear version 👇 ⸻ 1️⃣ Estimated Cost This is the planner’s guess. Typed manually in the order header. Used for: • approvals • budgeting discussions • rough idea before starting work No SAP calculation. Just experience. ⸻ 2️⃣ Planned Cost This is SAP’s calculated cost based on what you add to the order: • Components (material price) • Operations (activity type × hours) • Service lines (info record / SRV price) Planned cost updates automatically when the order structure changes. This is the first “realistic” number. ⸻ 3️⃣ Actual Cost This is what actually happened in the plant: • Material issue (GI) → cost hits the order • Labor confirmation → hours × activity rate • Vendor invoice (MIRO) → external service • Overheads → cos...