Review Maintenance Work Order Costs
Reviewing maintenance work orders help you track costs incurred for the materials and resources used for maintenance activities. These activities include preventive maintenance, break down maintenance, and so on, which can be performed in-house or outside as outsourced jobs.
Prerequisites
The two prerequisites are:
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Run the processes listed in the table in the same sequence. These can be either scheduled or run on demand.
Process
Run By
Navigation
Transfer Transactions from Maintenance to Costing
Manufacturing Supervisor
Tasks panel of Maintenance Management > Transfer Transactions from Maintenance to Costing.
Transfer Transactions from Inventory to Costing
Cost Accountant
Scheduled Processes work area > Schedule New Process > Transfer Transactions from Inventory to Costing.
Create Cost Accounting Distributions
Cost Accountant
Cost Accounting Work area > Create Cost Accounting Distributions.
Create Accounting to create Accounting in SLA
Cost Accountant
Cost Accounting Work area > Create Accounting.
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The maintenance work order is in any status other than the unreleased status. That is, the work order is in any of the following statuses.
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Released
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On Hold
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Canceled
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Completed
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Closed
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Viewing Costs of a Maintenance Work Order
You can review the material and resource costs incurred for a maintenance work order on the Maintenance Work Order Costs page. You can review the cost details and their distributions, separately.
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Details: View the summary of cost details, which includes the total cost, material costs, and the resource costs.
You can further drill down and view detailed information about the material and resource costs incurred for each operation and work center in that work order.
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Distributions: View the summary of costs distribution.
Distributions provide accounting information for all the transactions reported against the maintenance work order that's being analyzed. The summary page shows the processing status of the transactions, such as, Not Processed, Partially Costed, and so on.
To review maintenance work order costs, do the following:
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In the Cost Accounting work area, select Review Maintenance Work Order Costs under Cost Processing from the Tasks panel.
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Search for the work order records using the search filers: Cost Organization, Cost Book, Plant, Output Item, Work Order Number, and Work Order Status.
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Select the required work order from the search results and click View Costs.
Note:You can also navigate to this page by clicking View Costs on the Edit Maintenance Work Orders page.
When you perform maintenance activities for multiple assets that belong to the same item in a single maintenance work order, the assets that you link to the work order get interfaced to costing and the maintenance expenses are equally apportioned to all the assets linked to the work order. This ability to group and track expenses incurred on multiple assets in a single maintenance work order helps to improve the operational efficiencies.
The Multiple Assets column on the Maintenance Work Order Costs page indicates whether one or more assets are linked to the order. The asset details are shown in the Asset Details section with the total costs incurred for the work order apportioned across all the assets linked to the work order. Also, the Work Order Costs detail page shows the Asset field set as Multiple if multiple assets are linked to the work order and you can identify the assets by clicking the link.
You can track the work in process balances and complete assets to inventory for maintenance work orders with Completion to Inventory enabled. Transactions such as WIP Material Issue and Resource Charges will debit the Work in Process accounting line type instead of the Maintenance Expense.
The Completion to Inventory column on the Maintenance Work Order Costs page helps you to differentiate such work orders. You can also assign multiple assets to such a work order and Multiple Assets is set to Yes for the work order.
You can transform an asset in a maintenance work order into a different item by completing it to inventory. Also, you can transform the asset from one asset number to another asset number for the same item. The Target Item column on the Maintenance Work Order Costs and View Costs pages helps you to identify the original item and the target item to differentiate such work orders. In this case, the material and resource transactions will debit the Maintenance Expense accounting line type.
Click View Costs to see the details of the Input Costs, Output Costs, and Variance Amounts.
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If you're using the Standard Cost method to cost the asset item, any difference between the Input Costs and Output Costs will create a Rework Variance.
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If you're using Actual, Perpetual Average, or Periodic Average cost methods, the product completion cost will be based on the total costs incurred for the work order.
Reviewing Distributions of a Maintenance Work Order
Review distributions for all transactions reported against a maintenance work order or for a specific transaction. The transaction and costing details give you the accounting information of all the resources and materials used for each item.
To review distribution of maintenance work order costs, on the Maintenance Work Order Costs page:
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Select the required work order.
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Click Review Distributions.
Account for Service Costs
You can accrue unposted service costs as Service Work in Process and recognize the expense as a cost of service at a later point when the service charge is posted in Service Logistics. The Material and Resource transactions created in Maintenance use the Service Work in Process Valuation accounting line type instead of Maintenance Expense. After you post the service charges (debrief charges) in the Service Logistics application, service cost lines along with recognition percentage are interfaced to Cost Accounting. Using this information, Service Cost Recognition transactions are created to reverse the appropriate amount from Service Work in Process Valuation and post it to the new Service Work in Process Recognition accounting line type.
Field Service Debrief Cost Accounting
WIP Material Issue
| Accounting Line Type | Debit | Credit |
|---|---|---|
| Service Work in Process Valuation | X | |
| Inventory Valuation | X |
WIP Resource Transactions
| Accounting Line Type | Debit | Credit |
|---|---|---|
| Service Work in Process Valuation | X | |
| Resource Absorption | X |
Field Service Billing Cost Recognition
Service WIP Recognition
| Accounting Line Type | Debit | Credit |
|---|---|---|
| Service Work in Process Recognition | X | |
| Service Work in Process Valuation | X |
Let's take an example of a service work order where both parts and resources have been reported and Service WIP option is enabled.
| Transaction Type | Transaction Date | Item | Resource | Quantity | Cost | Service WIP Valuation | Inventory Valuation | Resource Absorption |
|---|---|---|---|---|---|---|---|---|
| WIP Material Issue | 24-Jul-25 | AS54888 | 5 EA | $50 | 250 | (250) | ||
| WIP Material Issue | 24-Jul-25 | 9010 | 5 EA | $100 | 500 | (500) | ||
| WIP Resource | 24-Jul-25 | Skilled Labor | 5 Hrs | $50 | 250 | (250) | ||
| WIP Resource | 28-Jul-25 | Labor | 2 Hrs | $75 | 150 | (150) | ||
| WIP Material Issue | 28-Jul-25 | AS54999 | 5 EA | $60 | 300 | (300) | ||
| WIP Resource | 29-Jul-25 | Skilled Labor | 5 Hrs | $50 | 250 | (250) | ||
| WIP Material Issue | 29-Jul-25 | INV-101 | 5 EA | $30 | 150 | (150) | ||
| Total | 1850 | (1200) | (650) |
After the charges are posted in Service Logistics, the invoice and revenue recognition information gets interfaced to costing. Based on this information, the cost processor would create the following distributions to recognize the service costs.
| Transaction Type | Transaction Date | Item | Resource | Cost Recognition Percentage | Subscription Type | Service WIP Valuation | Service Work in Process Recognition |
|---|---|---|---|---|---|---|---|
| WIP Material Issue | 1-Aug-25 | AS54888 | 100% | Standard Warranty | (250) | 250 | |
| WIP Material Issue | 1-Aug-25 | 9010 | 80% | Standard Warranty | (400) | 400 | |
| WIP Material Issue | 1-Aug-25 | 9010 | 20% | (100) | 100 | ||
| WIP Resource | 1-Aug-25 | Skilled Labor | 100% | Standard Warranty | (250) | 250 | |
| WIP Resource | 1-Aug-25 | Labor | 75% | PSA (Contract) | (112.5) | 112.5 | |
| WIP Resource | 1-Aug-25 | Labor | 25% | (37.5) | 37.5 | ||
| WIP Material Issue | 1-Aug-25 | AS54999 | 100% | (300) | 300 | ||
| WIP Resource | 1-Aug-25 | Skilled Labor | 100% | (250) | 250 | ||
| WIP Material Issue | 1-Aug-25 | INV-101 | 100% | (150) | 150 | ||
| Total | (1850) | 1850 |
On the Maintenance Work Order Costs page you can search for the maintenance work orders using the Service Request Number and Service Document Number. You can track the total recognized costs, recognized material, and recognized resource costs for each work order that has Service WIP enabled.
The Service Cost Recognition transaction will move the costs from the Service Work in Process Valuation to Service Cost accounts that can be different for different purposes such as warranty reserve, subscription cost of goods sold, time and material cost of goods sold, and installation cost of goods sold. You can configure the SLA mapping sets and account rules to achieve this using the SLA sources such as Subscription Type and Work Order attributes.