AC412 Cost Center Accounting: Advanced Functions AC412

Release 470 04/11/2006

AC412 Cost Center Accounting: Advanced Functions

AC412
Cost Center Accounting: Advanced Functions
© SAP AG 2001 © SAP AG

R/3 System Release 4.6 C January 2001 Material number 5004 4284

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Copyright 2004 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

© SAP AG 2003

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Cost Center Accounting AC415 .Course Prerequisites AC410 .Overhead Orders (recommended) Theoretical knowledge and practical experience in Cost Center Accounting. © SAP AG 1999 .

marginal costs. Financial accounting employees responsible for efficient activity allocation. or actual price revaluation. Duration: 2 days © SAP AG 1999 . extended planning functions and differentiated analysis of target costs.Target group Audience Project team members who are responsible for implementing Overhead Cost Controlling extended functions. variances.

Course Overview Contents: Course Goals Course Objectives Course Content Course Overview Diagram Main Business Scenario © SAP AG 1999 (C) SAP AG AC412 1-1 .

you will be able to: Distinguish various controlling concepts for responsibility areas Configure and use the advanced functions for planning and activity allocation Analyze information and effects of various cost accounting systems in overhead cost controlling © SAP AG 1999 (C) SAP AG AC412 1-2 .Course Goals At the conclusion of this course.

Course Objectives At the conclusion of this course. you will be able to: Describe and maintain the advanced planning functions for quantity-based planning Use plan reconciliation. and plan activity price calculation Use the various tools for activity allocation of actuals Investigate and analyze variances between plan or target costs and actual costs in detail Distinguish various cost accounting systems and their effect in overhead cost controlling © SAP AG 1999 (C) SAP AG AC412 1-3 . plan cost splitting.

Course Content Preface Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Course Overview Activity allocation: Concept and Master Data Enhanced planning techniques Actual cost allocation Period-End Closing Allocations and Analysis Summary Appendix © SAP AG 1999 (C) SAP AG AC412 1-4 .

Course Overview Diagram Activity Allocation: Concept and Master Data Advanced Planning Techniques Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 1-5 .

Main Business Scenario A fictitious firm is portrayed. The value flows and cost incurring factors in the enterprise are to be explained as clearly as possible for internal activity allocation. which produces computers. A detailed analysis of actual data and variances is required for each area of responsibility. The options provided by different cost accounting systems (such as variable costing or revaluation at actual prices) are to be examined for medium-term cost accounting purposes. This is to be done without causing any large amounts of data entry work. © SAP AG 1999 (C) SAP AG AC412 1-6 .

Business Scenario: Enterprise Structure Service Quality Assurance Production Production of Computers Energy Production of Chips Repairs © SAP AG 1999 (C) SAP AG AC412 1-7 .

Activity Allocation: Concept and Master Data Contents: Activity Allocation: Concept Master Data: Activity Type © SAP AG 1999 (C) SAP AG AC412 2-1 .

you will be able to: Distinguish between the concepts of cost assignment and activity allocation Interpret the goals of each concept Enter the most important basic settings for master data Activity type.Activity Allocation: Unit Objectives At the conclusion of this unit. © SAP AG 1999 (C) SAP AG AC412 2-2 .

Activity Allocation Activity Allocation: Concept and Master Data Advanced Planning Techniques Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 2-3 .

Activity Allocation: Business Scenario To establish the cost accounting concept for your enterprise. you: Work out the major benefits and disadvantages of activity allocation for the enterprise Create activity types for the cost centers whose costs have to be analyzed by reference to operating levels © SAP AG 1999 (C) SAP AG AC412 2-4 .

This involves recording both the consumption of production factors and the activity provided by an organization. Projects CO PC Product Cost Controlling Activity types Make-tostock Processes Material Material valuation valuation CO CEL Cost Element Accounting FI Financial Financial Accounting Accounting Asset Expense Sales Revenues HR Human Resources MM Material Material Mgmt. conditioning. It enables you to calculate the minimum price at which a product can be profitably marketed. It facilitates coordination. the system assigns the costs and revenues to different CO account assignment objects such as cost centers. It is the appropriate tool for monitoring all of the overhead costs incurred and allocating them appropriately to the place where they were incurred. Product Cost Controlling calculates the costs arising from the manufacture of a product or the provision of a service. The system allocates the corresponding costs to the revenues for each market segment. As part of this process. projects or orders. and for choosing the distribution channel.Value Flows in Controlling CO PA Profitability Analysis Profitability segment ECECPCA Profit Center Accounting CO OM Overhead Cost Controlling Cost centers Internal orders Sales orders. price determination. all cost-relevant data flows automatically to Controlling from Financial Accounting. monitoring and optimization of all processes in an organization. business processes. Therefore. customer selection. Profitability Analysis provides a basis for decision-making. You use Cost Center Accounting for controlling purposes within your organization. Mgmt. PP Production Production SD Sales and Sales and Distribution Distribution © SAP AG 1999 Controlling provides you with information for management decision-making. (C) SAP AG AC412 2-5 . The relevant accounts in Financial Accounting are recorded in Controlling as cost elements or revenue elements. Profitability Analysis analyzes the profit or loss of an organization according to individual market segments.

or processes. and analyze the costs arising from internal activities. orders.Target cost calculations . allocation criteria. Internal orders are used to plan.Quantity-based planning and reconciliation . or the provision of a particular service.Price calculation . collect.Variance analysis . You assign all overhead costs to the locations at which they were incurred. including functional considerations.Cost accounting system © SAP AG 1999 Overhead costs are costs that cannot be directly assigned to the manufacture of a product. You can use advanced analysis tools at period-end on quantity allocations: The system uses (C) SAP AG AC412 2-6 . There are different methods for allocating values and quantities. represent the utilization of resources of the sender cost center. or according to their physical location and/or management area. You valuate activities using a price calculated on the basis of certain business or management information.Responsibility Area Controlling CO PA Profitability Analysis ECECPCA CO OM Overhead Cost Controlling Internal orders Processes CO PC Profit Center Accounting Product cost Controlling CO CEL Cost Element Accounting . You can create cost centers according to a number of criteria. Activity types define the type of activity that can be provided by a cost center. Business processes combine sequences of activities within an organization over and above individual cost centers. The cost center represents a separate location of cost occurrence within a controlling area. They can be used to control organizational processes in line with particular functions. Activity provided by one cost center to other cost centers. or to the activities from which they arose. depending on the type of CO object in question. activities provided.

You can then analyze the variances identified.the operating rate (target costs) to compare the planned costs with the corresponding actual costs. (C) SAP AG AC412 2-7 . and their causes.

Actual cost entry: Primary costs are transferred to Cost Accounting from other components. or the overhead or plan=actual processes.Cost distribution Method Cost Center Transaction-Based Reposting costs Reposting line iems Manual cost allocation Periodic Accrual calculation Periodic reposting Distribution Assessment Cost Center Profitability segment Processes Advantages Sender controlled allocation Simple or no planning Primary and secondary cost distribution Analysis: plan/actual or actual/actual comparison Orders Projects © SAP AG 1999 Assigning costs to cost centers enables you to determine where costs are incurred within the organization. The system distinguishes between transaction-based allocations. General Ledger Accounting (FI-GL). which occur at period end. Characteristics of the cost allocation methods: Either no planning or only simplified planning is necessary The sender specifies the allocation amount. Actual Cost Allocation: You can use various methods to allocate the actual costs you have recorded. for example. Materials Management (MM). you can check cost efficiency at the point where costs are incurred. Asset Accounting (FIAA) and Payroll Accounting (PY). Both primary and secondary costs can be transferred (C) SAP AG AC412 2-8 . Additional costs or valuation differences are periodically entered using the accrual method. If you plan costs at cost center level. which occur within one period. and period-based allocations.

(C) SAP AG AC412 2-9 . which are based on plan-actual or actualactual comparisons.Various reports are available for the cost center analysis.

Along with time-saving automatic allocations. considerably reducing the expense of activity allocation. (C) SAP AG AC412 2-10 . When you allocate internal activity. or in separate particular problem areas. Activity (Type) Allocation: Activity allocation uses the activity produced by a cost center as the allocation base for the costs.Activity Allocation Method Cost Center Activity Type Cost Center Activity Type Profitability segment Processes Transaction-Based Direct activity allocation (confirmation from orders) Periodic Indirect activity allocation Target=actual activity allocation Template allocation Advantages Fixed and variable costs Receiver-controlled receiver input (demand) Plan reconciliation Price calculation with cost component split Analysis: Target/actual comparisons and advanced variance analysis Orders Projects Production Orders © SAP AG 1999 More advanced methods of overhead cost allocation are also available. The SAP R/3 System can automatically determine the quantities used in many cases. You can use these methods throughout the organization. or you can calculate it. The system needs an activity price to allocate costs and to allocate activity. This removes an argument often given in organizations favoring simple assessment and overhead calculation methods. If not. You can use activities to measure the operating rate or the rate of capacity utilization for a cost center. the integration of Overhead Cost Controlling in the R/3 System environment minimizes entry of actual data and reduces the work involved in planning. The target costs of the cost center refer to the activity output. and to market them. They can help determine what internal activities are needed to supply services or products. then the system derives this quantity automatically. You can either set this price manually. using planned or actual costs. you enter the quantity of the activity to be allocated. This enables you to allocate overhead costs according to resource consumption and activity utilization.

most managers have already exhausted most of these options. and coordination in such areas as research and development. At the end of the period. and work preparation grow ever more important in comparison to actual product manufacture. management. more detailed Controlling instruments are also available: Statistics on the costs dependent on the current operating level Advanced variance analyses Comparison and. you can use the methods of activity allocation to compare the planned costs (target costs) and their corresponding actual costs. quality control. You can make a source-based analysis of the resulting target/actual variances. based on the operating rate. Although direct activity output provides a great deal of cost transparency to which an organization can apply proven cost controlling methods to reduce costs. often remain unclear and the optimization potential unrealized. procurement.Goals of Each Concept Cost Distribution Plan Costs Actual Costs Plan/actual comparison? Actual/actual comparison? Balance? Time Activity Allocation Costs K (Plan) Allocated actual costs Target costs Actual costs Plan costs Kfix (Plan) Target/actual comparison? Marginal costs? Variances? h (Plan) © SAP AG 1999 h (Actual) Activity (hrs) Overhead costs from planning. and use the analyses for further managerial accounting measures within Controlling. revaluation at actual prices (C) SAP AG AC412 2-11 . however. The interconnections in overhead costs. if required. Unlike the analysis tools used in the cost assignment procedure.

Activity Allocation: Master Data .Activity Type At the conclusion of this topic. you will be able to: Identify the most important indicators for activity types Describe the importance of the activity type categories Describe the importance of the various price indicators © SAP AG 1999 (C) SAP AG AC412 2-12 .

1997 Indicator CPU Minutes CO Europe to Output 31. If a cost center provides activities for other cost centers. be careful to avoid inconsistencies with information stored in the cost center master data. is entered into the system (manually or automatically). and so on. You can assign any number of activity types. The system calculates the associated cost based on the activity price and generates a debit to the receiver and a credit to the sender for both the quantity and costs. (C) SAP AG AC412 2-13 .Activity Type: General Settings Activity Type Edit Goto Extras Environment System Help Activity Type Activity Type Controlling area Valid from Basic data Name Description Activity unit Cost center categories 1414 1000 01. or leave the assignments "unrestricted" by entering an asterisk (*). If you change the cost center type. The internal activity allocation is carried out via secondary cost elements. which are stored in the master data of the activity types as default values. The costs of these resources need to be assessed to the receivers of the activity. An activity type is assigned to a cost center during planning. by entering the allowed cost center types in the activity type master record. orders. You can enter up to eight allowed cost center types. the quantity of the activity.01. Activity types serve as tracing factors for this cost allocation. or none at all.9999 History CPU Minutes CPU Minutes. processes. You can restrict the use of the activity type to certain cost element types. allowed cost center category Indicator: blocked Output: alternative quantity unit History: change documents Environment: use of activity types © SAP AG 1999 Activity types classify the activities provided by a cost center. then this means that the resources of this cost center are being used. to a cost center. In an internal activity allocation. indirect calculation MIN * Minute Basic Data: Unit. such as the number of repair hours.12.

In activity type maintenance. For example. An actual activity type category is required only if actual allocation varies from plan allocation. while having others allocated automatically. for some activity types you can allow certain activities to be allocated directly based on transactions. you have the option of entering separate plan and actual activity type categories.Activity Type Category Which method should be used to allocate the activity type? Activity Type Allocation default value Activity Type Category Allocation cost element Price indicator Actual quantity set Plan quantity set 2 639100 1 Average prices PreDistribFixedCosts indirect calculation. the planned activity quantity is not changed by plan reconciliation – even where planning for the object is not to be reconciled. Manual posting is advisable when you want to determine the allocated activity quantity automatically. (C) SAP AG AC412 2-14 . indirect allocation IAA EDP assets automatically calc. based on planned activity Variance values for actual allocation Activity type category actual Actual price indicator As in plan Should the actual activity type be allocated using a different method? © SAP AG 1999 The activity type category is used to determine whether and how and activity type is recorded and allocated. Actual quantity set: This setting determines whether you can post a manual activity quantity in addition to the allocated quantity that credited the cost center. but you do not yet know the actual quantity from the sender side. Plan quantity set: If you select this indicator. the R/3 System automatically adopts the plan activity type category in the actuals. Otherwise.

or from activity type category 4 to a different category. you can nevertheless calculate target costs. based on business transactions. Plan activities are allocated to the receivers. Changes between activity type categories 1.Activity Type Categories: Time Spent Entering Quantities Cost Center Activity-related entry of sender and receiver quantities. The entry of actual activity quantities is transaction based. as these are only estimated amounts for activity planning. 2. "Activity Allocation" Cost Center Activity Type 1 Cost Center 3 4 Enter sender activity: Periodic "Indirect Activity Allocation" No entry: Periodic "Indirect Activity Allocation" (backflush) No entry: Periodic "target/actual activity allocation" (actual data only) Enter sender activity: "No allocation" 2 5 © SAP AG 1999 Activity Type Category 1: You plan activity quantities manually for activity types in this category. Activity Type Category 4: You plan activity quantities manually for activity types in this category. Activity Type Category 2. 3 and 5: these allow you to automatically plan and allocate quantities. You cannot specify receiver objects for this. It may be necessary to reconcile the planned sender quantities and the planned scheduled activity. using activity input planning. Categories 2 and 3 are assigned using cycles and segments related to the planning or the period-end closing work. They will save you time and effort regarding postings and plans. You cannot allocate to other objects. You enter actual activity quantities in internal activity allocation. even if the individual activity type has already been used for planning. if you have not yet posted in the planning or actual data of the fiscal year with each activity type. Category 5 can be used only with actual data. and 5 are possible. (C) SAP AG AC412 2-15 . For this activity type category. You can only make changes in activity category 4. 3. More detailed information on the differences is provided in later chapters.

These indicators enable you to set a price that is scheduled and varies from the plan. depending on the activity amount of an activity type. If you do not enter a price indicator for the actual allocation. you have to set the price of the activity type manually. You can specify the planned activity price manually or use a function to let the system automatically calculate the price. you can enter a price indicator different from that in the plan. The apportionment of activities to the cost centers should therefore reflect the allocation of costs to the activity types. the system uses the same price indicator for the actual and planning data. which are measured in activity units. If you set value 3. Prices can be calculated either on the basis of planned costs or actual costs. new prices are calculated when the plan price is calculated.Activity Type: Price indicator Cost Center PLAN: 1: Iterative: Plan costs / plan activity 2: Iterative: Plan costs / plan capacity 3: Manually entered plan price Optional: Actual prices: 5: Iterative: actual costs / actual activity 6: Iterative: Actual costs / capacity 7: Manual actual price  No calculation Optional Indicators: . The valuation of the activity quantity results in a price. the system records quantities. This price is recorded in separate fixed and variable portions.Average price . Value 7 allows you to determine an actual price manually. (C) SAP AG AC412 2-16 . For actual allocations. The price indicators Actual 5 and 6 are used during the actual price calculation to determine new prices and revaluate existing price allocations in CO-OM. If you set value 1 or 2 in the plan.Predistribution of fixed costs Cost Center Activity Type Cost Center © SAP AG 1999 To plan and allocate the activities.

© SAP AG 1999 (C) SAP AG AC412 2-17 .Activity Allocation: Summary You are now able to: Distinguish between cost assignment and activity allocation Interpret the goals of each concept Enter the most important basic settings for master data Activity type.

PC20 .Exercise Data AC412 Explanation of the symbols in the exercises and solutions Exercises Solutions Unit Objectives Business Scenario Tips & Tricks Warning or Caution Exercise Data Type of Data Controlling area Company code Business areas Profit center Standard hierarchy Standard hierarchy node used in course Cost centers Data in The Training System 1000 1000 1000.Rep20 .Chip20 .Ener20 . 1500 H1 H-AC412 Ener00 Rep00 PC00 Chip00 Qual00 . 1400. 7000 1015.Qual20 AC412 2-18 (C) SAP AG .

000 Accrued depreciation 613.100 Energy basic charge 416.100 External processing 416.000 Raw materials 403.000 Salaries 470.000 Wages 430.000 Room costs 473.000 DAA Machine costs 628.100 IT supplies 489.QuaH20 .200 Energy consumption 417.000 Spares 415.Cost elements 400.Rueh20 Statistical key figures NPROD – units produced (C) SAP AG AC412 2-19 .200 IAA Energy Activity types (created by course participants) QuaH00 kWh00 MaH00 RueH00 .000 Purchased services 420.000 External activities 415.000 Office supplies 476.000 IAA Quality 639.MaH20 .kWh20 .000 DAA Setup 620.100 Telephone 476.000 Operating supplies 404.

Analyze the existing structures in the system. The exercises and solutions use the following menu paths: CCtr: IMG: Accounting > Controlling > Cost Centers Tools > AcceleratedSAP > Customizing > Edit Project > SAP Reference IMG 1 Familiarize yourself with the company used in this exercise.Activity Allocation: Concept and Master Data Exercises Unit: Activity Allocation: Concept and Master Data Topic: Master Data At the conclusion of these exercises. and make your own user-defined settings. How many cost centers are there in the various areas of your firm? Enter your cost centers in the organization chart. Target costs and variances will be analyzed in order to establish a relationship between the internal costs and the activities. 1-1 Display your node H_TECH## (## is your PC number in the classroom) in the standard hierarchy of controlling area 1000 (under the node H9500-H-AC412). You will therefore create a number of different activity types for your firm. Because not all activity quantities can be measured in practice. you can use activity type categories. you will be able to: • • • Describe the functions of activity types as master data Explain what activity type categories are used for Explain what the price indicator does The exercises use the example of a firm that produces computers. (C) SAP AG AC412 2-20 . which will reveal what activities caused the costs. You will use advanced analysis methods and various allocation techniques to monitor the costs of areas of responsibility. Activity type categories enable automatic calculation and allocation of activity flows.

periods 1 – 12 Reporting period: Current fiscal year. (C) SAP AG AC412 2-21 . Make sure that no actual or plan costs have been posted for the current fiscal year. or plan quantity set). Do not set any indicators that are not mentioned in the exercises (such as predistribution of fixed costs. actual quantity set. When you create the activity types. All master data should be valid from January 1 of the current fiscal year to 12/31/9999. Check whether you have entered the correct activity type categories and price indicators for the activity types (if necessary. 2 Now create the activity types that you will use to measure the efficiency of your cost centers. At the end of the period. follow the instructions exactly.H_TECH__ H_PROD__ H_SERV__ 1-2 Make your user settings in the information system. Controlling area: 1000 Cost center group: H_TECH## Planning: Current fiscal year. periods 1 – 12 Plan version: Version 0 1-3 Go to the information system and analyze the plan and actual costs incurred by your firm up to this point. the costs incurred by each cost center will be compared against the activity output. look at the solutions to be sure). Call up the Plan/Actual Variance report for your cost center group H_TECH##. These default settings will facilitate entering data later.

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Create activity type MAH## (machine hours ##) in hours (h), which you will use later to measure the output of your chip production and PC production cost centers. This activity type can only be used by production cost centers (F). The activity should use transaction-based allocation in plan and actual data (activity type category 1). Choose an appropriate secondary cost element (such as 620000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Actual prices are calculated based on the actual activity quantity (Actual PI 5). Create activity type SETH## (setup time ##) in hours (h). This is used later to measure the setup time of PC production. This activity type can only be used by production cost centers (F). The activity should use transaction-based calculations in the plan and actual (Type1). Choose an appropriate secondary cost element (such as 613000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Actual prices are calculated based on the actual activity quantity (Actual PI 5). Create activity type QUAH## (quality check ##) in hours (h). This is used later to measure the time needed for quality checks of PCs and chips. This activity type may be used by all service cost centers (H). In plan data, the activity should be recorded manually (Type 1). In actual data, it should be recorded using indirect activity allocation (Actual Type 3). Choose an appropriate secondary cost element (such as 632000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Likewise, actual prices should be calculated at period-end based on the activity output (Actual PI 5). Create activity type REPH## (repair hours ##) in hours (h) which will be used to measure the activity output. This activity type may only be used by cost centers with cost center category R. The activity should allocated manually in the plan and actual data (Type 1). Choose an appropriate secondary cost element (such as 615000) so that the origin of the allocation is passed on to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). When the period is closed, the system calculates an actual price based on the actual activity quantity (PI 5). Create activity type ENH## (energy costs ##) in units of kWh which will be used to measure the energy consumption of the production cost center. This activity type may be used only by cost centers with cost center category G. In the plan data, the activity should be recorded manually (Type 1), and in the actual data it should be recorded using target=actual activity allocation (Actual Type 5). Choose an appropriate secondary cost element (such as 639200), since this passes on the origin of the allocation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the capacity (PI 2). This ensures that the high fixed costs
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needed to supply the activity are not allocated to the receivers of the activity. At period-end closing, the system calculates actual prices based on the capacity (PI 6). 3 Check the activity types you created. Go to collective processing and display the activity types you created. 3-1 3-2 Create an activity type group (AT##) that contains all activity types you entered. In collective processing, choose your activity type group ## and note the allocation indicators of your activity types. To do this, configure a layout (or choose an existing one) that shows you the following indicators for allocation control.

Using the solutions, check to be sure the indicators entered are correct. Activity Type ENH## MAH## QUAH## REPH## SETH## AllocCost Elem. 639200 620000 632000 615000 613000 CCtr Categ. G F H R F ATC ATC actl PI
Plan price ind.

API
Act. price ind.

1 1 1 1 1

5 3

2 1 1 1 1

6 5 5 5 5

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Activity Allocation: Concept and Master Data: Solutions
Unit: Activity Allocation: Concept and Master Data Topic: Master Data

The exercises and solutions use the following menu paths: CCtr: IMG: Accounting > Controlling > Cost Centers Tools > AcceleratedSAP > Customizing > Edit Project > SAP Reference IMG

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Enterprise Structure CCtr: Master data > Display Standard Hierarchy: Expand node H_TECH## and all lower-level nodes (the nodes are under H9500 and HAC412).
Diagrammtitel H_TECH##

H_PROD##

PC## PC Production CHIP## Chip Production H_SERV##

ENER## Energy REP## Repair QUAL## Quality Check

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User Settings CCtr: Information System > User Settings Basic data: Controlling area: 1000 Cost center group: H_TECH##

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Planning period: Current fiscal year, periods 1 – 12 Reporting period: Current fiscal year, periods 1 – 12 Further entries: Plan version: Version 0 Save

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Plan/Actual Comparison H_TECH##: You should receive a message telling you that no costs have been planned or posted up to now. CCtr: Information System > Reports for Cost Center Accounting > Plan/Actual Comparisons: Cost Centers: Fiscal year: Periods: Plan version: Cost center group: Actual/Plan Variance Current year 1-12 0 H_TECH##

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Create activity types When you create the activity types, follow the instructions exactly. Check whether you have entered the correct activity type categories and price indicators for the activity types (if necessary, look at the solutions to be sure). Do not set any indicators that are not mentioned in the exercises (such as predistribution of fixed costs, actual quantity set, or plan quantity set). 2-1 Activity type MAH## (machine hours ##) CCtr: Master Data > Activity Type > Individual Processing > Create Activity type: Valid: Enter Activity unit: h F 620000 Cost center categories: Activity type category: 1 Allocation cost element: Price indicator: 1 Actual price indicator: 5 MAH## January 1 of current year to 12/31/9999

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12.9999 1 SETH## January 1 of current year to 31.Save 2-2 Activity type SETH## (setup hours ##) CCtr: Master Data > Activity Type > Individual Processing > Create Activity type: Valid: Enter Activity unit: h F 613000 5 Cost center categories: Activity type category: 1 Allocation cost element: Price indicator: Actual price indicator: Save 2-3 Activity type QUAH## (quality checks ##) CCtr: Master Data > Activity Type > Individual Processing > Create Activity type: Valid: Enter Activity unit: h H 632000 Cost center categories: Activity type category: 1 Allocation cost element: Price indicator: 1 QUAH## January 1 of current year to 31.9999 Actual activity type category: 3 Actual price indicator: 5 Save 2-4 Activity type REPH## (repair hours ##) CCtr: Master Data > Activity Type > Individual Processing > Create > Activity type: Valid: Enter Activity unit: (C) SAP AG REPH## Jan. 1 of current year h R AC412 2-26 to 12/31/9999 Cost center categories: .12.

Activity type category: 1 Allocation cost element: Price indicator: Save 1 Actual price indicator: 5 615000 2-5 Activity type ENH## (energy costs ##) CCtr: Master Data > Activity Type > Individual Processing > Create > Activity type: Valid: Enter Units: kWh G 639200 Cost center categories: Activity type category: 1 Allocation cost element: Price indicator: 2 ENH## Jan. return 3-2 Collective Processing CCtr: Master Data > Activity Type > Collective Processing > Display > Cost center group: AT## (C) SAP AG AC412 2-27 . 1 of current year to 12/31/9999 Actual activity type category: 5 Actual price indicator: 6 Save 3 3-1 CCtr: Master Data > Cost Centers > Cost Center Group > Create > AT## Insert activity types enh## mah## quah## reph## seth## Save.

(C) SAP AG AC412 2-28 . If you find incorrect settings in the control indicators. G F H R F ATC 1 1 1 1 1 ATC actl 5 3 PI 2 1 1 1 1 API 6 5 5 5 5 Check the data using the solution.Execute Choose layout: 1-SAP02 (Allocation control) Continue Activity Type ENH## MAH## QUAH## REPH## SETH## AllocCost Elem. change these indicators in individual processing. 639200 620000 632000 615000 613000 CCtr Categ.

Advanced Planning Techniques Contents: Planning Scenarios Manual Planning Automatic Planning Techniques Plan Closing © SAP AG 1999 (C) SAP AG AC412 3-1 .

Advanced Planning Techniques: Unit Objectives At the conclusion of this unit. you will be able to: Explain the difference between various planning scenarios and analyze their results Use the different methods of manual and automatic cost and activity planning Perform the final planning activities such as plan reconciliation. plan cost splitting. and plan price calculation © SAP AG 1999 (C) SAP AG AC412 3-2 .

Course Overview Activity Allocation: Concept and Master Data Advanced Planning Techniques Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 3-3 .

Other activities. such as those for service cost centers.Advanced Planning Techniques: Business Scenario You want to use activity-oriented planning as a basis for detailed target cost analysis of your cost centers. An overview of capacity and bottlenecks for all of your firm's activities is another requirement. This price information should include all of the firm's costs. © SAP AG 1999 (C) SAP AG AC412 3-4 . You want information on the fixed and variable prices for the activities of the primary cost centers that allocate directly to cost objects. You want to plan important activities manually. you want the system to calculate automatically to minimize your planning effort.

Advanced Planning Techniques: Planning Scenarios At the conclusion of this unit. you will be able to: Describe and interpret the methods and results of different planning scenarios Describe and change the configuration of the individual planning screens © SAP AG 1999 (C) SAP AG AC412 3-5 .

You can simulate planning that calculates costs automatically for different outputs. In planning you determine the control criteria for the subsequent analysis. This enables you to assess performance.Planning: Scenarios Cost Planning Value planning Analysis: Plan/Actual comparisons Plan Costs Cost center Activity Planning Activity planning: Plan Costs Quantity output/Cost center (activityCost planning independent) (activity-independent) Manually entered price (or iterative fixed price) Cost center Plan Assessment . independently of the actual values from previous periods. Cost planning enables you to compare the plan and actual costs for areas of responsibility after periodend closing.Distribution .Reposting Plan activity h manual Advanced Cost Accounting Systems Plan costs dependent on output (activity-dependent) Iterative price calculation with fixed and variable portions Analysis: Target/actual comp. . but also on their activity (control of management effectiveness). At period-end you can compare plan and actual prices. you can compare a price calculated from planned costs with the prices of external providers. If you include fixed and variable plan costs per activity type in your cost planning (=activity-dependent planning). The main characteristic of standard costing is that you plan values and quantities for specific imeframes. not only based on plan data. and is a prerequisite for standard costing. (C) SAP AG AC412 3-6 . If you use cost and activity planning. In contrast to cost planning.You can analyze your area of responsibilities based on target costs. you can obtain actual values for your activity flow. Flexible standard costing Optional marginal costing Optional actual costing © SAP AG 2001 d Fixe Plan Costs (activityindependent) Cost center Plan activity h Plan Costs (activity-dependent) Vari able Cost center planning forms part of the overall business planning process. You can also follow the price development over various periods. you can use the advanced analysis tools: . Only the variable costs rise (plan reconciliation).

marginal costs). (C) SAP AG AC412 3-7 .You can also determine the cost of an additional activity unit (short-term lower price limit..

and cost element planning or activity input planning on the other Explain the difference between activity-dependent and activity-independent planning Use the various methods of manual cost and activity planning © SAP AG 1999 (C) SAP AG AC412 3-8 . you will be able to: Differentiate between activity output on the one hand.Advanced Planning Techniques: Manual Planning At the conclusion of this unit.

The System saves the new activity type category in the fiscal year and version in which you are currently planning. assigned to the Standard planner profile SAPALL. SAP provides the Standard-Layout 1-201. The price can be set iteratively or manually. 1) Plan activity Cost Center Setup time (Cat. Activity types are allocated under a secondary cost element. which is stored as a default value in the activity type master data. price and equivalence number. since the level of use can be measured at cost center level. capacity. (C) SAP AG AC412 3-9 . They help control activities in cost centers. You can also overwrite the default value of the activity type category in the activity type master record. output quantity. 1 1 Sched'd 0 0 © SAP AG 2001 Activity types are used to determine the quantity-based output of a cost center. 1) Plan activity Change Activities/ Prices Year Periods Cost Center Activity Type MAH SETH 2001 1 to 12 4275 Production Plan acty Capacity 12 000 1 200 14 000 1 500 Unit Fixed H price H Output Variable PPI 1 1 Cat. They can be used to calculate the operating rate and target costs. For activity type planning. The iterative approach considers all activity relationships between cost centers calculated by the SAP system. Activity types can be clearly defined in cost center accounting using the plan activity.Activity Output Machine Hours (Cat.

(C) SAP AG AC412 3-10 . these fixed costs are used to calculate the fixed portion of the activity price. which are organized into cost elements.000 Input Fix. are planned on the cost centers to which the actual costs are later assigned. If the cost center produces several activities. Quantity Variable DK 1 1 © SAP AG 2001 The activity-independent primary costs. If you plan activity-independent primary costs. you can assign these fixed assigned to the cost center activity types during splitting.Hrs Plan Activity: 12. you use either the equivalence number.000 30. For cost centers that use activity types.Hrs 2001 1 to 12 Production Cst Elmnt 430.000 415.000 50. In price calculation.Cost Element Planning Planned Costs Activity-independent Production Mach. Variable costs are those that change relative to the volume of activity. To do this. This means that the activity type price can include two fixed cost portions: .Activity-independent planned costs for the cost center . which you determine in the plan for the respective activity type. Whether or not you enter an activity type in the initial screen of the planning decides if you plan activity-independently or -dependently. you can only plan the fixed costs. Activity-dependent primary cost planning enables you to plan primary costs on a cost center. Value Variable 100. or the plan splitting structure. you can plan fixed costs based on both the individual activity types and on the activity-independent costs affecting the cost center.000 Fix.Activity-dependent fixed planned costs for the activity type The standard layout 1-101 contained in the SAP profile SAPALL helps you to plan activity-dependent and -independent primary costs. when these primary costs arise based on an activity (activity type). You can plan the costs that are dependent on these activities in fixed and variable portions.000 h Fixed Costs on Cost Center Planned Costs Activity-dependent Fixed / Variable Costs of Plan Activity (12000 h) Cost Element Planning Year Periods Cost Center Activity Type Mach.

You can use the standard layout 1-102 assigned to the profile SAPALL for this. 1 Plan activity Production MAH Energy KWH Cat. the fixed and variable prices of the activity type supplied by the sender cost center are combined and multiplied by the activity quantity consumed by the receiving cost center.Activity Input Planning (Manual) Fix. You can plan activity input as activity-independent and activity-dependent. If you need services (for example service hours) that are not specific to one activity type. REPH ENH ENH Fix. For activity-dependent secondary costs. To determine secondary costs. because cost centers use services (activity inputs) from other cost centers. MAH SETH 2001 1 to 12 Production SE-CCtr Repairs Energy Energy SE-Acty. secondary costs are often incurred by a cost center. and the receiver activity type. the sender activity type.1.500.000.000. The activity-independent secondary costs that are planned for a receiver cost center are always fixed costs.000. This can occur when a cost center incurs costs that cannot be assigned to an activity type.- © SAP AG 2001 In addition to primary costs. Quantity 100 h 0 kWh 200 kWh Input Variable 25. you must therefore specify the sender cost center. You plan the quantity of the "sender" activity type that is made available from the sender cost center to the receiver cost center.000. you choose activity-independent.Variable 25. Choose activity-dependent if you require activities for a specific activity type.4. you plan the quantity of activity input to a receiver cost center dependent on a activity type produced by the receiver center. Planning of secondary costs from activity allocations always requires a sender and a receiver cost center. for example programming hours.5.000 kWh 100 kWh Fix. When planning. the receiver cost center. (C) SAP AG AC412 3-11 . 1 Plan activity Input activity-dependent Fixed / Variable Consumption of Activities Activity Input Planning Year Periods Cost Center E-Acty. This may be the case when you plan programming for a machine that is used for only one activity type. Consumption for Cost Center SETH Input Activity-independent Plan activity Plan activity Repairs REPH Cat. Value 10.

Advanced Planning Techniques: Automatic Planning At the conclusion of this unit. you will be able to: Distinguish between the different concepts of automatic activity allocation in your plan Use the various methods of automatic activity allocation in your plan (indirect activity allocation and template planning) © SAP AG 1999 (C) SAP AG AC412 3-12 .

Fixed quantities .allocation of planned activities from sender to receiver Cost Center 3. The receivers of an indirect activity allocation can be cost centers. 2.. The corresponding segment must use the sender rule "Posted quantities". internal orders. or business processes.Planned quantities .Indirect Activity Allocation in Planning Data (Category Three) Cycle Flow: . You define the processing methods for each segment. Cycle definition: Distribution of sender quantity: . All receiver rules are valid here except "fixed quantities". use indirect activity allocation to distribute the planned activity quantities from the sender to the receiver based on specific keys. 3 Receiver input is automatically planned 1. The cost element assignment is defaulted from the activity type master data for the cost center/activity type plan. use activity type category three (manual entry. Depending on the the activity type cateogry. Different methods can occur together within a given segment. As with other periodic allocation procedures. Cost centers function as senders in indirect activity allocation. In contrast to manual activity planning. cost objects. 3. When you determine the total activity for the sender.. The costs are allocated under a secondary cost element from category 43. Cost Center Plan any tracing factors © SAP AG 2001 Indirect activity allocation automatically assigns activities in the plan.Plan statistical key figures .Percent .. For activities that are to be planned on a sender object. indirect activity allocation uses segments and cycles to define sender and receiver relationships.Planned activities . WBS elements. indirect allocation). Cost Center Cat.Fixed quantities 4. you define the key to be used for automatic plan allocation. and can be overwritten. Plan the activity provided based on tracing factors per receiver .Planned costs . you can choose between two different allocation methods. (C) SAP AG AC412 3-13 .

.Percentages . 1.In all other cases (for other receiver categories or other receiver tracing factors) the system posts all of the quantities as fixed. or the identical sender and receiver rules for fixed quantities.Sender values: x per tracing factor Cost Center Sender activity and Cat. the R/3 System determines the activities using the following methods: The sender activity quantity is derived from the receiver tracing factors (with global or a weighted factor that is defined per sender) or from the corresponding entries in the segment definition (as a fixed sender or receiver quantity). Cycle definition: Derivation of sender quantity from: ∑ of tracing factors . activity type or business process. all quantities are posted as variable . and any receiver rule. 2 receiver input are automatically planned Distribution of the receiver quantities based on tracing factors . When you indirectly allocate activity in the planning data.Planned activities .If the receiver is an order. The given segment must either use the sender rule for inversely calculating quantities.Planned statistical key figures . Cost Center © SAP AG 2001 Plan any tracing factors For activity types where the plan (output) quantities cannot be calculated or whose calculation is time-consuming. indirect allocation). (C) SAP AG AC412 3-14 . 2. This second form of indirect activity allocation uses activity type category two (indirect entry. cost object or WBS element.Inversely calculated .Indirect Activity Allocation in Planning Data (Category Two) Cycle Flow: 3..allocation of planned activities to sender and receiver Cost Center 2. the sender-specific weighting factors mentioned above are calculated with the sender values function (Default Value = 1).Planned costs ..Fixed quantities .If the receiver is a cost center. . the system determines the fixed and variable quantity portions according to the receiver category and its tracing factor in each segment. If you use sender rule for inversely calculating the quantity.. all quantities are posted as variable .

the costs are distributed in the same way as as they are during the valuation of activity-dependent activity input planning. (C) SAP AG AC412 3-15 .If a price exists for a sender object.

. Parallel processing of cycles saves a lot of time... you can display this after processing by choosing Technical statistics (C) SAP AG AC412 3-16 . and whether the fixed value rules are the same for both senders and receivers. On the Selection criteria tab strip..12. On the Cycle information tab strip. For example.Segment overview . For segments....Previous executions (documents) ... The cycles for the selected allocation are displayed in a structure tree.Changes I-IAA1 .2400 ... The formal check function enables you to test an individual cycle prior to an update run.. You define the cycle run groups in the cycle header data.Cycle Overview Cycle Overview Cycle overview Edit Goto Settings System Help Cycle Tree Structure Entries found Controlling area 1000 Internal Activity Allocation Plan cycles Selection criteria General information Cycle Validity Iterative Cycle Information Runtime analysis . you can display data for a particular cycle or segment....1998 . key fig.. you can start a consistency check. you specify the cycles and additional information to be displayed in the tree structure.... the segments are assigned one level lower in the hierarchy. the number of segments for the cycle.. If you activated the runtime log.. Information on selected segment Segment Repairs Sender rule Planned value 100% Variable portions Statist. the system checks that the total of percentage rates adds up to 100%.Formal check . You can use the error log to correct faulty segements and iterative relationships (Customizing)..... To process cycles of one allocation type in parallel..... you are provided with information on the segment definition and the sender.. and the last time the cycle was run or reversed. I-IAA1 Repairs Service Telephone Energy I-IAA2 I-IAA3 x Executed 1999 Iteratively ... including all relevant segments.. The system checks whether you are allowed to execute the selected cycles in parallel..... activate the indicator in the cycle definition. Receiver rule Scaling . If you want to process iteratively. you must assign them to different cycle run groups. The System also includes cyclical relationships in the cost center network (a receiver can also be a sender of costs).1... In each case. When you execute a cycle. .. Standard Posted amounts Variable portions Receiver PC Production Chip Production Customer Service Sender © SAP AG 2001 The cycle overview provides an overview of all cycles from one category.Cycle run groups 1. This provides information on the general data...31.

The costs are calculated by valuating the quantities with prices. To calculate the required data. To describe the allocation quantity in the plan. In addition to cost centers and cost center/activity types. Template allocation can be made to a cost center independent of the activity and/or depending on the activity. You make this assignment by entering a template in the master data of the cost center. and business processes. assumptions are usually made that estimate expected quantities based on this data. the receiver objects for template allocations can be profitability segments. A requirement for template allocation to a cost center is that a template must be assigned to the cost center. (C) SAP AG AC412 3-17 . The templates make it possible to reference specific field contents and to apply complex algorithms using operative data from the R/3 System. cost objects.Plan Template Allocation Statistical Key Figures Primary Costs Cost Center Activity Type Functions Template Cost Center ∫ ∑ π∗ 1 i= m m ∞ 27 Cost Center Activity Type η Activity Type Ω i Sender activity and receiver input are planned automatically! Additional SAP Data © SAP AG 1999 External Systems Template allocation is used to calculate the quantities that are consumed from each individual receiver cost center. You can base the allocation on periods or fiscal years. the template uses R/3 standard or user-defined functions.

The fixed planned quantities represent fixed consumption quantities that you enter as constant values or have the system calculate automatically during evaluation. You can enter a constant value for the factor. In activity-independent template allocation.Template Definition Template ∫ ∑ π∗ m 1 i= m ∞ 27 η Ω i Template Object Activation Condition Plan: Plan: Variable Quantity Factor Fixed Qty Function Function Type CCtr/AT 1000/1410 Which cost center/ activity type? Under what conditions? Variable allocation quantity factor? Fixed allocation quantity? Plan Template Allocation: When condition met. (C) SAP AG AC412 3-18 . the cost center of a specific cost center category). plan quantities are calculated based on template © SAP AG 1999 A template is a dynamic tool that uses functions and formulas to calculate values. It consists of a table (row/column) structure. and that determines the result of Boolean expressions (true or false). or allow the system to calculate it automatically during the time of evaluation. the variable quantity factor determines the planned sender output quantity by multiplying the output quantity of the receiver object with the variable factor. You can use it to set the value of an item to active or inactive. you can enter an object yourself (such as cost center 1000 and activity type 1410) or you can have the system determine this information automatically during evaluation (for example. In the object column. to define conditions that are checked during the evaluation or to set requirements for allocations.

and analyze plan price calculation Configure and use the cost component split © SAP AG 1999 (C) SAP AG AC412 3-19 . you will be able to: Reconcile the internal network of activities manually or automatically Assign the fixed costs of cost centers to activity types using plan cost splitting Configure.Advanced Planning Techniques: Plan Closing At the conclusion of this unit. execute.

If needed. you can also adjust the planning manually to fit the activity relationship using the information in the report. acty. 50 h Bottleneck! ≠ Overcapacity! h Maintenance kWh Var. The differences can result from overcapacities (planned activities exceed scheduled activities) or undercapacities (planned activities are less than scheduled activities).costs Planned acty Sched. input Var. The column for capacity allows you to determine how much you can manually increase the planned activity of a cost center. This can result in differences between the plan data of the sender and receiver cost centers.Information System: Reconciliation Reports Planning Fixed costs 1. Activity types: Receiver Plan: Shows which receiver cost centers have scheduled activities and how much higher or lower they are than the planned activity. For this reason you should execute plan reconciliation. 50 h 500 30 kWh 20 kWh ≠ No MRP in PP! Energy Var.costs Planned acty Sched.costs 400 Planned acty: 40 h Sched. prim. the R/3 System offers two standard reports: Activity types: Reconciliation: Shows the planned and scheduled activities for each cost center. To control the activity relationships across the entire enterprise. acty. 20 kWh 200 80 Mh 0 Mh ≠ Reconciliation Reports: Plan ≠ Schedule? Manual Plan Adjustment? MAH Production © SAP AG 2001 Each cost center plans its own activity output and the required activity input. Variances are shown as percentages and as absolute values.000 Var. acty. prim. prim. (C) SAP AG AC412 3-20 . input Var.

when a cost center plans to consume activity from a cost center. prim. (C) SAP AG AC412 3-21 .Automatic Plan Reconciliation Planning h Fixed costs 1.costs 500 Planned acty 30 kWh Sched. Recursive activity relationships occur. acty. for example.costs 420 Planned acty 25 kWh Sched. 50 h Plan reconciliation Fixed costs 1. acty. the fixed portions of activity-dependent activity inputs. If Production Planning is active. 25 kWh 250 100 MaH 100 MaH +25% MAH Production PP © SAP AG 1999 Transfer of the scheduled activity: 100 MaH Automatic plan reconciliation is used to check and reconcile the internal activity flow. prim. or primary costs. prim. to which it also provides activity.costs Planned acty Sched. The plan reconciliation does not change activity-independent primary costs. prim. If the indicator for plan quantity is set in an activity type.costs 200 Planned acty 80 MaH Sched. Posting a plan reconciliation leads to an automatic adjustment of your planned activities and variable planned costs in the enterprise. input 42 h Var. activity-independent activity inputs. input 50 h Var. input 20 kWh Var.costs 420 Planned acty: 42 h Sched. You can use plan reconciliation to automatically adjust all of the plan activity quantities from the sender to the scheduled quantities of the receiver.000 Var.000 Var. This approach normally results in differences between the activity quantity planned by the sender cost centers. 20 kWh Var. 42 h +5% Maintenance kWh Var. 25 kWh -16% Energy Var. In the next step. even if planning for the object is not intended to be reconciled. and the activity scheduled by the receiver cost centers or production orders. acty. This means that recursive activity relationships between cost centers are taken into account. The plan reconciliation is executed iteratively. acty. the planned activity quantity is not changed by the plan reconciliation.costs 400 Planned acty: 40 h Sched. the plan reconciliation adjusts the variable portion of activity-dependent primary costs and variable portion of activity-dependent activity inputs according the new plan activity. prim. input Var. acty. 0 MaH Var. prim. acty. you can transfer the planned activity for the production orders to the production cost centers.

Although the plan price calculation function splits the plan costs automatically.Plan Cost Splitting ? 540.000 fixed 60. The plan costs can be split using two different methods. (C) SAP AG AC412 3-22 . the planned costs not directly assigned (activityindependent planned costs) must be assigned to activity types.000 fixed 360.000 fixed Machine Hours Plan activity qty 10. Activity-dependent costs © SAP AG 1999 If you want to allocate all plan costs to the activities. you can also split the costs manually. Plan cost splitting assigns the activity-independent planned costs of a cost center to the individual activity types.000 h Activity-independent costs Production Setup Hours Plan activity qty 800 h 300. The activity-independent costs need to be split up among the activity types before the price of the activity units can be calculated. The R/3 price calculation function automatically calculates the plan prices. OK 120. Here the question arises as to how the fixed costs of the cost center can be allocated to the activity types on a cause-effect basis. The activity-independent costs become fixed costs of the price.000 var.000 var. This provides you with an overview of the costs debited to the activity types.

Assign cost elements .Statistical key figure . you can use weighting indicators to control whether the tracing factors are weighted when the costs are split.000/ SETH Execute Splitting SETH Activity-Independent Costs OR Production Splitting structure: . The splitting structure and the splitting rules establish a number of criteria that are used to assign activity-independent costs to activity types.Assign cost center to splitting structure The simplest method of plan cost splitting is to use an equivalence number (default value = 1) in manual planning for each activity type. these values are multiplied by the equivalence numbers of the activity types. the methods: .No splitting MAH Execute Splitting SETH © SAP AG 2001 . A splitting structure contains one or more assignments in which you specify splitting rules for the corresponding cost element(s) or cost element groups.Plan Cost Splitting: Methods Fair distribution of fixed costs? MAH Equivalence numbers: 540. you can define a splitting structure. Machine hours "1" > 270. For example. for example).Create in Customizing . If the Conversion indicator is active.g.. in planning/activity output: E. If you want to assign different cost element groups to the activities (on the basis of the plan quantity or the activity types.Activity quantity / receiver .Assign distribution rule. You can restrict the selection of cost elements or cost element groups.000/ MAH Setup hours "1" > 270.Capacity .. You should set the indicator if the individual values of the tracing factor use different units of measure. This makes the different units of measure of the tracing factor values comparable.000 fixed . All planned activity-independent cost elements are split in accordance with the equivalence number. In addition. (C) SAP AG AC412 3-23 . The methods provided in the standard R/3 System can be used to split the planned costs as described above.Output . as well the activity types over which the costs are split. These methods specify how the costs are split. Splitting methods are then assigned to the splitting rules..

the system uses that splitting structure to apportion the costs. This fulfills the requirements for price calculation and for complete target cost calculation. Otherwise. whereas changed equivalence numbers must be maintained manually.000 Machine Hours Plan activity qty 12.Requirement for price calculation 540.-dependent: ∑ 229.000 fixed Activity-Independent Costs Splitting by activity Costs per activity type: Acty. it uses the equivalence number.150.200 h Acty. all costs (those that were to be assigned to activity types) are assigned to activity types.Costs / activity .000 300. Activity-dependent costs © SAP AG 1999 120.000 491.000 var.000 Production Setup h Hours Plan activity qty Acty.-dependent: Acty.000 h ∑ 1. If a splitting structure is created in Customizing and assigned to the cost center.-independent: 1.000 180.000 fixed 360. Once plan cost splitting has been executed. (C) SAP AG AC412 3-24 .000 var. The advantage of the splitting structure is that the tracing factors can be determined automatically using the splitting rules and limited to cost elements or activity types.000 49.000 fixed 60.Plan Cost Splitting: Result All costs are assigned to the activity types: .-independent: 660.

000 Sec.SerH / MaH x RueH © SAP AG 2001 Planned prices can be calculated for every activity type of a cost center./ Mh x 100 SerH SerH k 00 20 Wh S 20 erH 50 SerH 10 MaH Energy: Prim. This is useful when you don't want idle-capacity costs for the maximum activity quantity to influence product costing.Plan Price Calculation Activity Output: Planned Price Indicator: 1: Plan costs / Plan acty or 2: Plan costs/ Capacity or 3: Manual price Service: Prim. In the plan version.Service / SerH x 500 0 kW h MaH 200 MaH Production: Prim. This means that an additional purely iterative price is calculated for all activity types on all cost centers.costs: 7.costs: 10.000 kWh Sec.Energy/ kWh x .200 Sec. The manual prices are ignored. the R/3 System calculates the activity price in an iterative process by dividing the plan costs by the plan activity. (C) SAP AG AC412 3-25 .costs: 2. the fixed costs of supplying the activity should remain on the supplying cost center. you can also calculate the fixed portion of the price from the relationship between the plan costs and the capacity.Prod. If you have manually set prices in addition to iterative prices.Energy/ kWh x .costs: 50 RueH . This ensures that the prices calculated from your planning (a mixture of iterative and manual prices) are calculated using purely iterative methods. You can choose between average activity price and periodic activity price. a cost center that supplies energy must be capable of supplying the maximum level of activity at any time -.even when the maximum level is not actually required. In this case. since the full amount cannot be assigned directly to the product costs. Based on the plan activity flows between cost centers. As an alternative. you can set the indicator purely iterative in the version. This enables you to see the overall effects of your manually planned prices on the activity prices. For example. you can set up the determination method for the plan activity price calculation.costs: .costs: .

Assign cost components to cost component structure: A cost component contains all the costs of the range of cost elements assigned to it. You can use the detailed price information (cost components) in Product Cost Planning (CO-PC).000 Accruals:3.000 Material:10. For example.000 (26%) (31%) (23%) (20%) Energy: Wages: 7.000 13.000 Material:10.000 (28%) Material 10.Cost Component Split Cost Components Production: Wages 10.cost 25. you must first do the following: Create a cost component structure: In the version.000 MaH Cost Components Personnel Material Assets Accruals ∑ 17.000 Depr.000 Depr. The cost elements in Cost Center Accounting are assigned to the cost components in Product Cost Planning by means of a cost component structure in Product Cost Planning. you can see how much of the price is material costs and how much is wages. 10.000 (25%) Accruals 3. If no cost component structure is specified in the version.000 Accrual 10. the prices will not be broken down into cost components.000 65.000 Sec.000 Accruals:3. Before you can see the cost components of the prices.000 Material 10.000 ∑ 25.: 5.000 20. When plan activities are allocated.000 COCOPA © SAP AG 1999 Price calculations with a cost component split (breakdown of costs into cost components) enhance the transparency of the prices calculated iteratively by the R/3 System.000 25 .000 (40%) Assets 5. Transferring the cost information in cost estimates from Product Cost Planning to Profitability Analysis (CO-PA) enables the cost components in those cost estimates to be analyzed in CO-PA as well. (C) SAP AG AC412 3-26 .0 00 h kW 1 EUR/ kWh COCOPC Cost Components Personnel 7. You assign cost components to the cost component structure based on your organizational requirements.000 ∑ 65. you specify the cost component structure you want to use for price calculation. the cost components of the sender are visible on the receiver.000 15.000 (12%) ∑ 25.

If you want to use a different component split for the sender than for the receivers.. .0 00 1 EUR/ kWh COCOPC Cost Components: Energy 25. Example: The Energy cost center allocates activity to multiple production cost centers. All costs from the Energy cost center (labor and materials) flow into the receiver cost component Energy.Cost Component Split: Optional Switching Structure Cost Components Production: ..000 Material:10.000 h kW Energy: Wages: 7. create a switching structure for your cost component structure.000 ∑ 25.000 MaH xxxxxxxxxxx xxxxxxxxxxxx xxx Energy 25.: 5.000 25 . labor costs assigned to cost component 2 (Personnel) flow to target cost component 4 (Energy).. The switching structure determines which sender cost components go into which receiver cost components. . (C) SAP AG AC412 3-27 . Energy 25..000 / 100% COCOPA © SAP AG 1999 You have the option of deactivating the cost component split for particular cost centers/activity types. The target cost component Energy contains costs from the cost components Personnel and Raw materials.000 Accruals:3. The switching structure contains the following information: When activities are allocated.000 Accruals:3. The switching structure Energy is assigned to the cost component structure IE..000 Material:10. Materials assigned to sender cost component 1 (Raw materials) also flow to cost component 4 (Energy).. You assign a switching structure to the combination of cost center/activity type in activity type planning.000 Depr.

organization structures. because both plan activity quantities and plan capacity influence the total volume of costs. When defining the sequence of planning activities. or automatically (using plan assessment or indirect activity allocation). The next step in the planning scenario is secondary cost planning. rather an iterative process which goes through several cycles. you can use plan reconciliation to check and reconcile internal activity exchanges. A sample scenario might include the following points: You can use statistical key figures to calculate cost center characteristics. (C) SAP AG AC412 3-28 . SAP recommends certain rules. At the end of the planning process. At the completion of activity planning. Therefore you can save plan data in different versions.Typical Sequence for Planning Plan statistical key figures Plan activity output Plan cost elements (activity-dependent / -independent) Plan activity input (activity-dependent / -independent) Copy planning Plan indirect activity allocation Plan template allocation Plan reconciliation (Plan cost splitting) Plan price calculation Lock planning © SAP AG 2001 Cost center planning is different in almost every organization. You plan secondary costs manually (activity inputs). which can be either activity independent or dependent. You begin with activity planning and tracing factor planning. Activity price calculation is the final stage in planning. you know the required volume of activity quantities and can plan primary costs. The planning process is not a one-off event. and management areas are all factors that affect planning. The type of industry. and to support cycle allocations and the splitting as tracing factors.

and plan price calculation © SAP AG 1999 (C) SAP AG AC412 3-29 .Advanced Planning Techniques: Unit Summary You are now able to: Explain the difference between various planning scenarios and analyze their results Use the different methods of manual and automatic cost and activity planning Perform the final plan activities such as plan reconciliation. plan cost splitting.

the following units provide results that should match yours if the all steps have been carried out correctly. Then you plan the primary costs of the cost centers. so you assign the activity types to your cost centers. repairs and energy) . fixed or variable costs that differ from the plan activity of your activity types.Exercises Unit: Advanced Planning Methods Topic: Manual Planning At the conclusion of these exercises. and then the input. AC412 3-30 (C) SAP AG . such as internal energy supply. you will be able to: • Plan activity output • Plan cost elements or activity input • Distinguish between activity-dependent and activity-independent (input) planning • Use the different methods of manual cost planning and activity planning for different purposes. You need to follow the instructions for this exercise on manual planning as exactly as possible. you plan all cost center activity types manually. which you use later to monitor cost effectiveness. ensure that you plan for all periods (1-12) of the current fiscal year. 1 Planning preparation: In the following. You want to plan costs for your enterprise manually. Likewise. You want activity-based planning. 1-1 Choose the SAPALL planner profile and save it in your user master. To ensure clarity. 2 Because you want to use activity type category 1 for all cost centers. for the input of internal activities. These can be fixed costs of the cost center. Therefore you manually plan for both production cost centers (chip and PC) and for the three service cost centers (quality assurance. or.the output first. you manually plan the planned input quantity on the receivers.

2-2 Your quality checks (QUAL##) plan 1. Set the corresponding indicator. 2-1 Your energy cost center (ENER##) plans to supply 1. 2-4 Your production cost center PC (PC##) plans 12. Leave any other rows empty and remain on the planning screen. The price is to be automatically calculated based on planned activities (PI 1). The annual activity is to be evenly distributed among the periods (distribution key=DK 1).500 hours).600 h (overview screen). and in the remaining four summer months only 200 h per month.000 kWh. Later.500. Leave any other rows empty and remain on the planning screen. (C) SAP AG AC412 3-31 . the price is to be automatically calculated. 2-5 Your production cost center Chip (CHIP##) is also to provide machine hours (MAH##). which is set higher than the plan. Remain on the planning screen. Leave any other rows empty and remain on the planning screen. The price is to later be automatically calculated.800 hours).500 inspection hours (with a capacity of 1.000 kWh.000. The total planned activity for the year is 3. The activities are to be evenly distributed among the periods. based on the capacity (plan price indicator=PI 2). both prices are to be automatically calculated based on planned activities (each PI 1). The activity is to be evenly distributed among the periods (DK 1). Later. The activity is to be evenly distributed among the periods (DK 1).200 setup hours.000 machine hours and 1. Leave capacity empty. based on plan activity (PI 1). Leave any other rows empty and remain on the planning screen. The capacity is 3. Why does the system not display all the possible activity types of group AT## for your five cost centers?. The capacity reflects the maximum possible activity quantity. Capacity is not planned.Plan the activity output for the current fiscal year by going to the single values (using the formbase) from the initial screen of your cost center group H_TECH## and your activity type group AT##. the price is to be automatically calculated. Scroll through the cost centers. you want to work with constant yearly prices (average prices). based on plan activity (PI 1). Later. 2-3 Your repair cost center (REP##) plans 1. The planned activity from January to May and then from October to December is to be 350 h per month. Although the cost center output fluctuates periodically. Go from the MAH## row to the period screen since you want to plan different activity quantities for each period.200 repair hours (with a capacity of 1.

and that are important for later activities (for example. Check all your values again. C A P A Pl A E E 2 6 1 5 Q Q 1 6 1 3 R R 1 6 1 (C) SAP AG AC412 3-32 . This time. choose free entry. leave row SETH## empty. allowed allocation methods and actual price indicators). and post your total plan value. 2-6 Compare all allocation control indicators for the planned activities for your cost centers (H_TECH##) and activity types (AT##) with the solution. The “control indicators” layout in activity planning shows you the indicators that are set in the planning. by scrolling through the cost centers (make any necessary changes). Therefore.Set-up hours are not planned here. Check your entries carefully.

C Cost El em en t Fixe DK (C) SAP AG AC412 3-33 . activity-independent).P M 1 6 1 P S 1 6 1 C M 1 6 1 3 Cost Element Planning 3-1 Plan the salary costs and the room rental for your cost center group (H_TECH##) as fixed costs (that is. Page to layout 1-101 for this. choose the complete current fiscal year (form-based entry) and your cost center group H_TECH## and the cost element group FIX412. Leave field activity types/groups empty. To start with.

0 3-34 .0 480. 470000 Ro o m co sts R 430000 Sa lar ies 470000 Ro o m co sts P 430000 Sa lar ies 470000 Ro o m (C) SAP AG AC412 24.E 430000 Sa lar ies 60.0 470000 Ro o m co sts Q 430000 Sa lar ies 18. 60. 12.0 108.0 120.

In contrast to activity-independent planning. Check the data again and save your entries.co sts C 430000 Sa lar ies 470000 Ro o m co sts All fixed planned costs should be distributed over the periods evenly (distribution key 1). you fill in the "Activity type" field in the initial screen. Where appropriate. Remain in the same layout 1-101. The distribution key for each is 1. choose (form-based) cost center QUAL##. 36. C A Cost Element Fixe Plan (C) SAP AG AC412 3-35 . 3-2 Now plan the primary costs for your cost center. plan for the entire current fiscal year. which you can uniquely assign (activity-dependent) to specific activity types. These can contain fixed and variable portions. 3-2-1 Plan the activity-dependent costs for your quality cost center as follows: In the initial screen. activity type QUAH## and the cost element interval 415000 to 420000.0 120.

Q Q 415000 Extern al activiti es - 90. For the purchases of planned external activities (415100).UNI per hour. and the quantity indicators.200 h. C C F V F V Unit (C) SAP AG AC412 3-36 .00 Q 420000 Wages 60.200 h for 100. activity type REPH##. Do not forget the unit h.. and cost element 415100. enter for the variable cost of 120. 3-2-2 Plan the activity-dependent costs for your repair cost center as follows: In the initial screen.0 30. which you plan for 1.000 the corresponding variable consumption of 1. choose (form-based) cost center REP##. The distribution key is 1.00 Save your entries.

R 4 - 1 - 1 Save your entries. C C Fixe Variable P l a n n e d C o st s (C) SAP AG AC412 3-37 . The distribution key for each is 1. 3-2-3 Plan the corresponding activity-dependent costs for the energy cost center (ENER##) as follows.

000 (C) SAP AG AC412 3-38 .000 4 24.0 - 4 - 180.E 4 - 18.

Save your entries. Cost Center Activity P Cost Element 4 Fixed Planned Costs 240. activity dependent (activity type group AT##) in cost element interval 420000 – 489000 (distribution key for each 1). DK Variable Planned Costs 300.000 DK (C) SAP AG AC412 3-39 . 3-2-4 Plan the corresponding activity dependent costs for the PC production (PC##).

3-2-5 Plan the activity independent costs for the chip production (CHIP## with distribution key 1). 60.4 60.000 Save your entries.000 4 120.0 60. C C Fix Variable Pl an ne d C os 3-40 (C) SAP AG AC412 .

000 Save your entries.000 4 12. 120. (C) SAP AG AC412 3-41 .ts C 4 240 150.

scroll to layout 1-102 Activity Inputs. To do this.3-3 Now manually plan the secondary costs / activity inputs of both production cost centers. quantity assurance and energy) for its activity MAH##.2 P R - 1. enter activity type group AT##.2 (C) SAP AG AC412 3-42 . Choose form-based entry and distribution key 1 for each one.2 P Q - 1. 3-3-1 Production PC## requires (activity-dependent) activity inputs from cost center group H_SERV## (repairs. As before. For the sender activity types. C Fi Va P E - 1. plan using the distribution key 1 for the entire year.

C S Fi Va C E - 30 Q - 60 R - - Save your entries.Save your entries. 3-3-2 Chip production CHIP## also requires (activity-dependent) secondary costs of cost center group H_SERV## with sender activity type group AT## for its activity MAH##. Choose form-based entry and distribution key 1 for each one. (C) SAP AG AC412 3-43 .

Go to the variation in each cost center and note the planned debit and the planned activity for each.4 Check your planned costs by going to the information system in the plan/actual comparison for your cost center group H_TECH## and the entire current year. C Planned Debi t Activi Planned Activity p E ENH# R REPH Q QUA P MAH “ SETH C MAH (C) SAP AG AC412 3-44 .

(C) SAP AG AC412 3-45 .Compare these with the solutions.

5 Optional text task: You saw the manual planning of activity input in the last exercise. you initially reconcile the plan to check for bottlenecks and overcapacity in the enterprise. However. you have decided to use these methods (such as indirect activity allocation or template allocation) only in the actual data because this will save you the most amount of effort. Afterwards. discuss the various concepts of automatic activity allocation in planning. You have now fulfilled the prerequisites for calculating the prices in your enterprise. After manual planning is complete. you will be able to: Explain and distinguish between the various concepts of automatic activity allocation in planning. Which methods are available to you for the automatic allocation of activities in the planning? To repeat these functions.Which object in this plan allocation can be the sender (for example. You decide on a splitting structure that distributes all (activity-independent) planned costs according to the activity quantities. These prices can be forwarded to other modules (CO-PC and CO-PA). complete the following table and compare it with the solutions. Configure and use cost component splitting in Overhead Controlling. you want to assign the (activity-independent) fixed planned costs to your activity types. To complete plan closing. cost center or order)? (C) SAP AG AC412 3-46 . Assign the fixed costs of cost centers to activity types using plan cost splitting. Automatically or manually reconcile the internal network of activities. For each.Exercises Unit: Advanced Planning Methods Topic: Plan Closing At the conclusion of these exercises. Configure and use the plan price calculation. you need to know the following: . You want to determine the components of your prices using the cost component split.

.Which tracing factors can be used to distribute the sender quantities? Method Assessment Indirect activity allocation (posted qty) Indirect activity allocation (inverse) Template allocation Sender Cost Center Alloc. Tool Cycle Tracing Factor Receiver rule in cycle 6 Plan reconciliation 6-1 Check report “Activity Types: Reconciliation” for the planned and scheduled activities for the current fiscal year in your sender cost center (cost center group H_SERV##).Which allocation tool can be used for this plan allocation (for example. overhead structure)? . Cost Center/Activity Type ENER## / ENH## QUAL## / QUAH## REP## / REPH## Scheduled Activity Plan Activity Variances (Scheduled<> Plan) Capacity How do you check your activity network and how can you reconcile it? 6-2 Understanding the concepts: What would be the consequences for a price calculation if the planning were not reconciled and had the following combination: (C) SAP AG AC412 3-47 .

Costs Fixed QUAL## Variable Dep. For which cost center does the system recommend a plan adjustment. and how much? Cost center: _____________ Changes: ___________ Accept the automatic plan adjustment by posting the results of the plan reconciliation for your cost centers only. in the Test run and without business processes. 6-3 Go to the Planning Overview report for your cost center QUAL## (since this does not have a reconciled plan). Costs /QUAH##) Fixed Variable Plan Activity (total) Tasks 7 and 8 do not need to be done if you do the optional exercises. Which costs have changed due to the plan reconciliation? Cost Center Ind. (C) SAP AG AC412 3-48 . Costs /QUAH##) Fixed Variable Plan Activity (total) 6-4 Execute the plan reconciliation for your cost center group H_TECH## only for the current fiscal year. 6-5 In the planning overview compare the costs on your cost center QUAL## with the results of exercise 2-3. and check the total costs and the activity quantities planned there. Costs Fixed QUAL## Variable Dep. Cost Center Ind.Scheduled Activity > Plan Activity? Think about this situation carefully (you will find notes in the settings for price calculation) or compare your answer with the solutions.

7 Plan cost splitting Due to the lock logic. 8 The planned price calculation is also now posted by the instructor. (C) SAP AG AC412 3-49 . using the planned activity quantity. the instructor has now assigned your cost center PC## to splitting structure AC. This allows the system to split the activity-independent costs of this cost center between activity types MAH## and SETH##.

you prepare the splitting of your activity-independent plan costs between the activity types: 9-1 Examine the splitting structure “AC”. you will be able to learn a great deal from the exercises. several results are given in the solutions. What ratio is used to split the activity-independent plan costs of cost center PC## between the MAH## and SETH## activities? Compare the proportions with the specified plan activity. 9-2 Which method is used for the splitting? Method: 9-3 Split the plan costs only for your cost center PC## as a test run. (C) SAP AG AC412 3-50 . Even if some of your results are different. Which cost elements are part of the splitting? Cost elements: Remain in the splitting structure. They also include differentiated allocations and analyses to increase your understanding of planning. which you should get if you carry out all the above tasks correctly. 9 After your instructor has assigned your cost center PC## to splitting structure AC. For illustration purposes.Optional Exercises Unit: Advanced Planning Methods Topic: Plan Closing and Differentiated Planning Analysis These exercises are not part of the standard course.

) Cost Center/Activity Type: ________________ ____________ Method: 10-3 To which cost component structure for cost component splits is the price calculation in version 0 assigned? Cost component structure:__________________ 10-4 Examine the corresponding cost component structure. Which method is used for the price calculation in the plan for version 0? Method: ____________________ Remain in the settings for the version. 10 Plan price calculation 10-1 View the settings for the price calculation in customizing. Which one of your cost centers/activity types ignores the “Periodic Price” method? (Review the “Activity output/prices” planning for your cost center group H_TECH## and all activity types [*]. post the split in an UPDATE RUN.) (C) SAP AG AC412 3-51 .000 h 1.) 2. Which cost element intervals are assigned to the “External activities” component in the chart of accounts INT? Component Cost elements: 1. 10-2 Think back to the exercises for manual planning.200 h When the proportions of the split costs reflect those of your plan activities.Plan Activity MAH## SETH## Cost Plan Activity 12.

What do you notice? Remain in the results screen for price calculation.11 Plan price calculation 11-1 Calculate the plan price in a test run for the current fiscal year and your cost center group H_TECH## . 11-2 Go to the period view of your price MAH## for cost center CHIP##. 11-3 Go to the cost component split for cost center PC## and activity type MAH##. Cost Center Activity Type MAH## ENH## MAH## SETH## QUAH## REPH## Overall Price Variable Price Base (from plan price indicator) CHIP ENER## PC## QUAL## REP## Now post the result and remain in the results screen for the price calculation.without business processes. What costs are planned for intervals 415000 – 419000 and 451000 – 459000 for period 1? Compare this with the costs in component 60 for activity type MAH## (PC##) in period 1. Why is this different? (C) SAP AG AC412 3-52 . Choose price unit 1 and the display variant total/variable for the illustration. enter the calculated price and base (capacity or activity). and cost elements 451000 – 419000 and 451000 – 459000 Costs in component 60 (per period): _______________________ 11-4 Open an new session and go to the “Plan/Actual Variance” report for period 1 and cost center PC## only in the information system. What costs occur in each period that contains component 60 external activities. Enter the price in period 1 in the following table. In the following table.

Consider the possible causes and check them using the solutions. What additional information is provided if the indicator purely iterative is set in the version? In particular. examine the MAH## price for the CHIP## cost center in the period view as compared to both available price indicators (PI 1 <> PI 4). Set the indicator display all prices and display in price unit 1.11-5 Examine the balance of each of your cost centers in the plan in the Plan/Actual Comparison report for group H_TECH##. Call up the report for version 0 and the entire current fiscal year. (C) SAP AG AC412 3-53 . 11-6 Analyze the price report for your cost center group H_TECH## with activity type group AT## for all periods of the fiscal year. Cost Center CHIP## ENER## PC## QUAL## REP## Plan Balance (periods 1-12) Comments on the Balance Not all cost centers in the plan have been completely credited.

Solutions
Unit: Advanced Planning Methods Topic: Manual Planning

You need to follow the instructions for this exercise on manual planning as exactly as possible. To ensure clarity, the following units provide results that should match yours if the all steps have been carried out correctly.

1-1

Planning preparation

CCA: Planning > Set planner profile: SAPALL Save in the user master record Enter 2 Activity output Not every activity type is allowed for all cost center types. You limited each activity type in the master data to certain cost center types. This is why a production cost center (for example, PC##) can only provide activity types MAH## and SETH##, but not REPH## (repair hours). CCA: Planning > Activity output / prices Plan version: Time period: Cost center group: Activity type group: Entry: Overview Remain on the planning screen. 0 1-12 current year H_TECH## AT## Form-based

2-1

Activity output energy cost center (ENER##)

Scroll to cost center ENER##:
(C) SAP AG AC412 3-54

In row ENH## Plan activity: 1,500,000 kWh Distribution key (DK): 1 kWh DK: 1 Plan Plan price indicator (PPI):2 Capacity: 3,000,000

Leave any other rows empty and remain on the planning screen.

2-2

Activity output quality check (QUAL##)

Scroll to cost center QUAL##: in row QUAH## Plan activity: 1,500 h DK 1 Capacity: 1,800 h DK 1 PPI: 1

Leave any other rows empty and remain on the planning screen.

2-3

Activity output repair cost center (REP##)

Scroll to cost center REP##: In row REPH## Plan activity: 1,200 h DK: 1 Capacity: 1,500 h DK: 1 PPI: 1

Leave any other rows empty and remain on the planning screen.

2-4

Activity output production cost center PC (PC##)

Scroll to cost center PC##: in row MAH# Plan activity: 12,000 h DK: 1 PPI: 1 DK: 1 PPI: 1 in row SETH## Plan activity: 1,200 h

Leave any other rows empty and remain on the planning screen.
2-5 Activity output production cost center chip (CHIP##)

Scroll to cost center CHIP##: Select row MAH## Go to the period screen. In the period screen enter the following planned activities:
(C) SAP AG AC412 3-55

Jan – May and Oct – Dec.: Jun – Sep: 200 h each

350 h each

Go to the overview screen again: Planned activity = 3,600 h DK: 0 (=manual) was automatically set. Set the indicator for average prices in the row for MAH##. Price indicator: 1 Set-up hours are not planned here. Therefore, leave row SETH## empty. Check all your values again, and post your planning.

2-6

Allocation-related control indicators for the planned activities

CCA: Planning > Activity output / prices Scroll to the layout: Version: Time period: Cost center group: Activity type group: Free entry Overview screen: Compare these with the solutions. 1-204 control indicators 0 Total for current fiscal year H_TECH## AT##

Check your entries carefully, by scrolling through the cost centers (make any necessary changes).

Cost Center ENER## QUAL## REP## PC## PC## CHIP##
(C) SAP AG

Activity Type ENH## QUAH## REPH## MAH## SETH## MAH##

Price ind. (PI - Plan) 2 1 1 1 1 1

Price ind. AllocCost (PI - Actl) Elem. 6 5 5 5 5 5 639200 632000 615000 620000 613000 620000

A

Cat(plan) 1 1 1 1 1

Cat (Act) 5 3

X

1
3-56

AC412

* Any additional rows that are displayed, and have cost elements and activity type categories that are ready for input are not planned.

3
3-1

Cost element planning
Cost Center Group (H_TECH##)

CCA: Planning > Cost elements/activity inputs Version 0 Time period: Cost center group: Activity Types/Groups Cost Element Group: Entry: 1-12 current year H_TECH## FIX412 Form-based

Page to the corresponding cost centers and make the following entries:

Cost Center ENER## QUAL## REP## PC## CHIP##

Cost Element 430000 Salaries 470000 Room costs 430000 Salaries 470000 Room costs 430000 Salaries 470000 Room costs 430000 Salaries 470000 Room costs 430000 Salaries 470000 Room costs

Fixed Planned DK Costs 60,000 1 18,000 1 120,000 1 24,000 1 108,000 1 12,000 1 480,000 1 60,000 1 120,000 1 36,000 1

Check the data again and save your entries.

3-2

Activity-dependent planning

3-2-1 Activity-dependent costs of the quality cost center (QUAL##) CCA: Planning > Cost elements/activity inputs
(C) SAP AG AC412 3-57

Save your entries.000 90. 1. Save your entries. - Variable Unit M Cons. 3-2-2 Activity dependent costs of the repair cost center REP## CCA: Planning > Cost elements/activity inputs Layout: Version: Time period: Cost center: Activity Type: Cost element Entry: Overview 1-101 0 1-12 current year REP## REPH## 415100 Form-based CCtr Acty Cost Element 415100 External activity Fixed Planned Costs - Variable Planned Costs 120.200 h X REP## REPH## Do not forget the unit h and the quantity indicator that calls up a warning message during FI postings for account assignments of quantities.000 30.Layout: Plan version Time period: Cost center: Activity Type: Cost elements: Entry: Overview 1-101 0 1-12 current year QUAL## QUAH## 415000 to 420000 Form-based Cost Center QUAL## Acty QUAH## QUAH## Cost Element 415000 External activities 420000 Wages Fixed Planned Variable Costs Planned Costs 60.000 Fixed Cons. (C) SAP AG AC412 3-58 .000 All planned distribution keys should be set to 1.

000 1 - ENH## - 1 180. charge) Fixed Planned Costs - DK Variable Planned Costs DK 18. charge) 416200 Energy (use/var. 3-2-4 Activity dependent costs for PC production (PC##) CCA: Planning > Cost elements/activity inputs Version: Time period: Cost center: 0 1-12 current year PC## Activity Type: MAH## to SETH## Cost elements: 420000 to 489000 Entry: Overview Form-based Cost Center Activity Cost Element Fixed Planned Costs AC412 DK Variable Planned Costs DK (C) SAP AG 3-59 .000 1 Save your entries.3-2-3 Activity-dependent costs from the energy cost center (ENER##) CCA: Planning > Cost elements/activity inputs Version: Time period: Cost center: Activity Type: Entry: Overview 0 1-12 current year ENER## ENH## Form-based Cost elements: 404000 to 416200 Cost Center ENER## Activity ENH## ENH## Cost Elem 404000 Spares 416100 Energy (base/fix.000 1 24.

000 120.000 1 60.000 DK 1 1 Save your entries.000 60.000 1 1 SETH## 120.000 1 1 150.000 1 Save your entries. activity inputs Plan version 0 Time period: 1-12 current year 3-3-1 Activity input for production PC## (C) SAP AG AC412 3-60 .000 60.000 12. 3-2-5 Activity dependent costs for chip production (CHIP##) CCA: Planning > Cost elements/activity inputs Plan version: Time period: Cost center: Activity Type: Entry: Overview 0 1-12 current year CHIP## MAH## Form-based Cost elements: 420000 to 489000 Cost Center Acty CHIP## MAH## MAH## Cost Element 420000 Wages 489000 Accrued costs Fixed Planned DK Variable Planned Costs Costs 240. 3-3 Activity input for both production cost centers CCA: Planning > Cost elements/activity inputs Scroll to the layout: 1-102.000 1 1 300.PC## MAH## MAH## 420000 Wages 489000 Accrued costs 420000 Wages 240.

000 kWh 1.Activity type group: Entry: Overview PC## MAH## H_SERV## AT## Form-based Cost Center Activity PC## PC## PC## SE-CCtr SE-AT ENH## QUAH## REPH## Fixed Variable Unit Consumption Consumption 1.200 H MAH## ENER## MAH## QUAL## MAH## REP## Ensure that all distribution keys are set to 1. and save your entries.Activity type group: Entry: Overview CHIP## MAH## H_SERV## AT## Form-based Cost Center Activity CHIP## SE-CCtr SE-AT ENH## QUAH## REPH## Fixed Variable Consumption Consumption - Unit MAH## ENER## MAH## QUAL## MAH## REP## 300. 3-3-2 Activity input for chip production (CHIP##) Cost center: Activity Type: SE – Cost center group: SE.200 H 1.Cost center: Activity Type: SE – Cost center group: SE.200. 4 Plan/actual Comparison for your cost center group H_TECH##: CCA: Infosystem > Reports for cost center accounting > Plan/Actual Comparison: Cost Centers: Fiscal year: Periods: Plan version: (C) SAP AG Actual/plan variance current year 1-12 0 AC412 3-61 .000 kWh 600 H Ensure that all distribution keys are set to 1. and save your entries.

600 h CHIP## 678.000 kWh 1.000 h 1.200 h 1.500 h 12.000 MAH## (C) SAP AG AC412 3-62 .000 240.Cost center group: H_TECH## Go to “Variation” in the single value Cost Center ENER## REP## QUAL## PC## Planned Debit 300.500.000 1.000 324.000 Activity Types ENH## REPH## QUAH## MAH## SETH## Planned Activity 1.380.200 h 3.

alloc. category 2 Cost center or Template business process 6 Plan reconciliation For the purpose of illustration.) Indirect acty. Method Assessment Sender Cost center/Business Process Alloc. which you should also get if you do all the above tasks correctly.Solutions Unit: Advanced Planning Methods Topic: Plan Closing 5 Optional text task Comparison of methods for automatic allocation of activities in the plan. Tool Cycle Tracing Factor Receiver rule in cycle Receiver rule in cycle Receiver rule in cycle Variable functions and tracing factors in the template Indirect acty. category 3 Cost Cycle Center/Activity Type. alloc. (posted qty. results are provided in the solutions. (inverse) Template allocation Cost Cycle Center/Activity Type. you will be able to learn a great deal from the exercises. 6-1 The Activity Types report: Reconciliation QUAL## CCA: Information System > Reports for Cost Center Accounting > Planning Reports > Activity types: Plan reconciliation Time period: Cost center group: 1-12 current year H_SERV## AC412 3-63 (C) SAP AG . Even if some of your results are different.

000 in planned costs exist.800 h 1.000. 6-3 Planning overview of cost center QUAL## CCA: Information System > Reports for Cost Center Accounting > Planning reports > Planning overview: Time period: Cost center: Execute 1-12 current year QUAL## Cost Center Ind.500 h On the Quality Assurance cost center. Example: Sender cost center: 10. you have a bottleneck because 20% more activity is be required than the cost center has planned as activity output. 6-2 Understanding the concepts: Scheduled Activity > Plan Activity? The plan price calculation would trigger an error message because the plan prices would not exactly reflect all planned costs (it is possible to determine the tolerance in the settings for price calculations).500.200 h 1. although only 10.000 kWh 1.800 h 1.000 kWh 1.000 in planned costs are sent to the receiver via the price calculation. You can now reconcile the plan manually (decentralized plan change by the cost center manager) or use automatic plan reconciliation.000 planned costs at 100 h plan activity = 100 / h. 12.500. If 120 h (receiver cost center) have been scheduled.000 kWh 1.200 h 3.500 h 1. Costs Dependent Costs (QUAH##) AC412 Plan activity (C) SAP AG 3-64 .Execute Cost Scheduled Center/Activity Activity Type ENER## / ENH## QUAL## / QUAH## REP## / REPH## Plan Activity Variances (Scheduled<> Plan) 20 % - Capacity 1.

000 Variable 144.000 (+ 20 %) Plan Activity Fixed QUAL## 144.000 (total) 1.000 (total) 1.800 h (+20 %) (C) SAP AG AC412 3-65 . Costs Dependent Costs (QUAH##) Variable (independent are always fixed) Fixed 60.000 Variable 120.Fixed QUAL## 144.800 h (+ 300 h or 20%) H_TECH## Accept the automatic plan adjustment by posting the results of the plan reconciliation for your cost center group.000 Variable (independent are always fixed) Fixed 60.500 h 6-4 Plan reconciliation: only for cost center group H_TECH## CCA: Planning > Planning aids > Plan reconciliation: Cost center group: No business process Periods 1 – 12 in current year TEST RUN Cost Center QUAL## New plan activity 1. 6-5 Planning overview of cost center QUAL## (according to plan reconciliation) CCA: Information System > Reports for Cost Center Accounting > Planning reports > Planning overview: Time period: Cost center: Execute 1-12 current year QUAL## Cost Center Ind.

but does not exist here.000). the instructor now assigns your cost center PC## to splitting structure AC.000 to 144. 8 The planned price calculation is also now posted by the instructor. Variable activity input (or quantity consumption) would likewise have been increased by 20% .The plan activity and the variable costs were each increased by 20% (activitydependent variable costs from 120. (C) SAP AG AC412 3-66 . Exercises 7 and 8 do not apply if you do the optional exercises. 7 Plan cost splitting Due to the lock logic. This allows the system to split the activity-independent costs using the planned activity quantity (MAH## and SETH##).

9-2 Splitting method structure AC IMG: Controlling > Cost Center Accounting > Actual Postings > Period-End Closing > Activity Allocation > Splitting > Define Splitting Structure > Maintain Splitting Structure Splitting structure AC > Assignment 10: Rule AC Splitting rule AC.Solutions: Optional Exercises Unit: Advanced Planning Methods Topic: Plan Closing and Differentiated Planning Analysis These exercises are not part of the standard course. you will be able to learn a great deal from the exercises. which you should get if you carry out all the above tasks correctly. 9 9-1 Plan cost splitting Cost elements in the splitting structure AC IMG: Controlling > Cost Center Accounting > Actual Postings > Period-End Closing > Activity Allocation > Splitting > Define Splitting Structure > Maintain Splitting Structure Splitting structure AC > Assignments > Selections for The Assignment Cost elements: 400000 – 699999 Remain in the splitting structure. several results are given in the solutions. They contain additional differentiated allocations and detailed questions to increase your general understanding of planning. For illustration purposes. Even if some of your results are different. Method 12 = Activity quantity 9-3 (C) SAP AG Plan cost splitting for cost center PC## AC412 3-67 .

000 Plan Activity 10. 10-2 Cost center that does not calculate your price as a periodic price: Cost center CHIP## with price MAH## calculates the price as an average yearly price. Splitting in an update run.CCA: Planning > Allocations > Splitting Cost center: PC## Version: TEST RUN 0 Time period: 1-12 current year Plan Activity MAH## SETH## Cost ~ 490. the prices should be held constant for the entire year. However.000 ~ 49. The average price indicator is set during planning.000 h The same proportions as the plan activity.000 h 1. Reason: The cost center has fluctuating periodic activities (low production in the summer). 10 Plan price calculation 10-1 Methods for price calculation in the plan in version 0 IMG: Controlling > General Controlling > Organization > Maintain versions Version: Settings per fiscal year Current year 0 (select) (level 5) Double click Methods for price calculation in the plan: Periodic price Remain in the settings for the version. 10-3 Cost component structure for cost component split IMG: Controlling > General Controlling > Organization > Maintain versions Version: Settings per fiscal year 0 (select) (level 5) AC412 3-68 (C) SAP AG .

) 451000 – 459000 11 Plan price calculation 11-1 Price calculation for cost center group H_TECH## CCA: Planning > Allocations > Price calculation: Cost center group: No business processes All periods in the current fiscal year UPDATE RUN Execute H_TECH## Edit > Display > Price > Price unit 1 Edit > Display > Total/variable values Cost Center CHIP## ENER## PC## (C) SAP AG Activity Type MAH## ENH## MAH## Overall Price 234.00 0.) 415000 – 419000 2.13 61. 10-4 Component “external activity” IMG: Controlling > Cost Center Accounting > Planning > Allocations > Activity Allocations > Price Calculation > Settings for Cost Component Split > Define Cost Component Structure: IE: Select Assignment: cost component .00 Base (from PI) Plan activity Capacity Plan activity 3-69 .cost element interval Chart of Accounts: INT Component 060 external acty.Current year Double-click Cost component structure IE provides the components of the price calculation. Cost elements: 1.00 0.00 AC412 Variable Price 99.17 152.

your activity type Machine Hours (MAH##) contains externally activity costs.00 50. In the price result Select row PC## / MAH## Go to: Components Cost component 60 external activities contains about 28.SETH## QUAL## REP## QUAH## REPH## 191.800 costs in each period. 11-3 Cost center PC## and activity type MAH##: Cost component split.00 80. although different activity quantities occur in each period (=average price). 11-4 Plan/actual variance for period 1 and cost center PC## System → Create session: CCA: Infosystem > Reports for cost center accounting > Actual/Plan Comparison: Actual/Plan Variance Cost center: Period: Execute No cost elements from interval 415000 – 419000 and 451000 – 459000 are planned for cost center PC##. 11-2 Period view of price MAH## of cost center CHIP##. Although cost center PC## did not consume any external activities.00 200. In price results select CHIP## with MAH## Go to: Periods The price remains constant.00 100.00 Plan activity Plan activity Plan activity (Given prices are rounded) Remain in the results screen. but also the corresponding original cost elements for each iterative price that is allocated (secondary costs) to the cost center in the plan. Remain in the results screen for price calculation. These external activity PC## 1 (C) SAP AG AC412 3-70 . Reason: The cost component split takes into consideration not only the primary cost elements of a cost center.00 193. most of which is variable.

from service cost centers repairs. this balance levels out during the year (see Plan/Actual Comparison for one period only). The remaining costs stay there and must be posted to PA (preparation costs at a higher level). which calculated your planned prices based on the plan activity. and do not have an average price.costs for one machine hour originate.000.000 0 0 0 Short Explanation (but periodic balance > average price) (price based on capacity) Cost center ENER## has not been credited of all plan costs. However. You can view the corresponding distribution of fixed costs in the planning overview report. All other cost centers.500. not via the planned credit (=Schedule).000 kWh capacity * 1. in this case.000 kWh plan activity. 11-6 Price report for cost center group H_TECH##: Purely-iterative indicator CCA: Information System > Reports for Cost Center Accounting > Prices > Cost Centers: ActivityPrices: Cost center group: (C) SAP AG H_TECH## AC412 3-71 . all fixed costs of the cost center are distributed via capacity. As a result of the price calculation (based on capacity). quality assurance and energy. 11-5 Plan balance of each cost center CCA: Infosystem > Reports for Cost Center Accounting > Actual/Plan Comparison: Actual/plan variance Cost center group: Execute Go to the individual cost centers via the variation H_TECH## All periods in the fiscal year Cost Center CHIP## ENER## PC## QUAL## REP## Plan Balance (periods 112) 0 51. have a periodic plan balance as well as a total plan balance of zero. The CHIP## cost center (average price MAH## for fluctuating periodic activity) also has a balance in each period. Calculation of the balance: 102.000 – fixed costs / 3.

There you can see what the periodically exact price for each period would be. This value shows you how high a comparable price would be. when you use manual prices or average prices. and go to the period view. select row CHIP##. This purely-iterative price is calculated using period costs / period activities. that has been periodically iterated.Period: Execute 1 Display all selected prices Select rows CHIP## / MAH## / PI 1 Go to the period view: Result: All allocated prices are equally high per period Select rows CHIP## / MAH## / PI 4 (purely-iterative) Go to the period view: Result: The system displays various prices (purely-iterative) in the periods Price indicator 4 (purely-iterative) shows you an additional comparison value. while the average price uses yearly costs / yearly activities. although a yearly average price is used here for the allocation. MAH## (average price) using price indicator 4 (purely-iterative). For example. for example. (C) SAP AG AC412 3-72 .

Actual Cost Allocation Contents: Transaction-Based Activity Allocations Periodic Activity Allocations © SAP AG 1999 (C) SAP AG AC412 4-1 .

Actual Cost Allocation: Unit Objectives At the conclusion of this unit. you will be able to: Explain the concept of actual cost and activity allocation Perform transaction-based activity allocations Explain and implement the techniques of periodic activity allocation © SAP AG 1999 (C) SAP AG AC412 4-2 .

Allocating Actual Costs Activity Allocation: Concept and Master Data Advanced Planning Techniques Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 4-3 .

At the end of the period. You post activity allocations and execute initial transaction-based checks by means of reports.Actual Cost Allocation: Business Scenario Activities are allocated in the actuals after planning is completed. © SAP AG 1999 (C) SAP AG AC412 4-4 . the activities that were not allocated manually can be allocated automatically using period-based techniques.

you will be able to: Explain the concept of actual cost and activity allocation Execute. cancel.Actual Costs: Transaction-Based Activity Allocation At the conclusion of this topic. and repost transaction-based activity allocations Describe and implement the concept of "Entering Sender Activities" © SAP AG 1999 (C) SAP AG AC412 4-5 .

Materials Management (MM). (C) SAP AG AC412 4-6 . the assignments are made only to the responsible CO object. These quantities are valuated using an existing plan price. and Personnel Administration (PA-PA). You can enter data either with individual entry (for complex allocations) or list entry for cases where large quantities of data are involved. This enables real-time information to be provided on debits and credits for the receiver and sender. The costs recorded in these components were assigned to an object of cost accounting (such as a cost center or internal order). the actual costs are transferred in real time from the components Financial Accounting (FI). Asset Accounting (FI-AA). all manual actual postings are structured according to the same principle. primary costs are transferred from the previous component to cost accounting. Instead. In the Controlling component (CO).The Concept of Actual Account Assignment FI HR Actual Costs Cost Center Activity Type Actual Activity CO MM Plan pric e © SAP AG 2001 When actual costs are entered. In contrast to planning (activity dependent). In Controlling. This minimizes the effort involved in data entry. Activity allocation assigns only quantities to accounts. account assignments are not made directly to the activity type. Production Planning (PP).

Direct activity allocation credits the sender cost center and debits the receiver cost centers. the cost center receiving the activity (receiver). multiplied by the activity price where appropriate. The cost element used during the direct allocation of internal activity is defaulted by the master data for the activity type. therefore. create an activity type with activity type category 1. and the quantity of the activity provided. you must define which cost centers are providing which activity types. However. the type of activity. and allocated. or a project). entered. Note that before you can execute direct activity allocation. The debits and credits are made using a secondary cost element (category 43). you can change this in the cost center/activity type plan. Order 10 3 5 Production Cust. PrgH PrgH PrgH List Entry QuantityRec. The receiver can be any true controlling object (such as a cost center. (C) SAP AG AC412 4-7 . To execute direct activity allocation. Note that only one cost center can be the sender of a direct activity allocation. be planned on the sender cost center in the R/3 System. The cost element cannot be changed in the allocation transaction. The debits and credits equal the activity quantity provided. To enter a direct activity allocation. The activity types must. Serv. enter the cost center providing the activity (sender). 1 3h Customer Service 5h Enter activity allocations Entry var: to CCtr/Order Sender CCtr. an order. CCtr Rec. Program Program Program Se-Acty. Project 1 Orders.Direct Activity Allocation 10 h Production Programming PrgH Cat. Direct activity allocation is transaction-based and documented by sender and receiver line items. Projects © SAP AG 1999 Direct activity allocation means that the internal activities provided are measured.

It is still possible to calculate actual prices. there is more specific information available on changing prices to cover cost differences. you can cover cost differences without changing the planning data. Furthermore. the planning data is often obsolete. you can specify the actual price unit and actual price indicator. The layout also shows you the posted data that exists for the plan price. You can set the fixed or variable portion of the actual price for an activity type per cost center. With this manual or planning price. Particularly in later periods. the price can be set manually or overwritten retroactively by the actual price calculation. (C) SAP AG AC412 4-8 . This price is used to valuate activity relationships between cost centers. Depending on the price indicator. The standard planner profile SAPALL contains the planning layout 1-N01 for manual entry of an actual price for activity types of cost centers. You can manually enter an actual price for an activity type of a cost center independent of actual price calculation.Manual Actual Price Planning unchanged ic n pr Pla e 2001 January FI HR Actual Activity Actual Costs CO MM Cost Activity Center Type 2001 July Actual Activity Manu Forward scheduled price changes © SAP AG 2001 al A ctua l Pr ice You can manually enter actual prices during activity allocations without having to wait until revaluation. However.

Entering Sender Activities Cost Center G Cost Center . 4: Operating Rate and Target Cost Calculation All Cats O A . Activity type category 4 is normally used by administration and sales cost centers to allocate costs to Profitability Analysis (CO-PA) using the assessment method. (C) SAP AG AC412 4-9 . For example. output quantity variances occur during variance calculation.g. You enter this quantity for the purposes of cost center control. If you set the corresponding indicator for the cost center's activity type in the activity master data. 2. Activity Type Category 4: You can also use this function to enter an activity quantity produced by your cost center that is not allocated to other Controlling objects. 3: Entry for Indirect Activity Allocation . 5: Compare measured with allocated quantity ® Variance Analysis Enter sender activities: e.Activity Type Cats. If the allocated quantity differs from the measured quantity.Activity Type Cat.Activity Type Cat. This provides more detailed information on target costs and the causes of variances. 4. This is what distinguishes activity type category 4 from a statistical key figure. If you use a measured quantity. if you allocated activities using indirectly-determined activity quantities (compare target=actual activity allocation or indirect activity allocation). the system is able to determine a more precise operating rate. you can post these activity quantities for all activity type categories. This allows the System to calculate the operating rate (actual activity divided by plan activity) for your cost center and. You can overwrite this default during activity planning for cost centers. variances can occur in the actual quantities determined. the target costs and variances.960 kWh L S Cost Center © SAP AG 2001 This function enables you to enter measured activity quantities for a cost center and compare them with the allocated activity quantity. consequently.

Periodic Activity Allocation: Unit Objectives At the conclusion of this topic. you will be able to: Describe and use the techniques for periodic activity allocation: Target = actual accrual cost calculations Indirect activity allocation Actual template allocation Target = actual activity allocation © SAP AG 2001 (C) SAP AG AC412 4-10 .

The distribution and posting of these accrued costs is called accrual calculation. these may be expenses that are only assigned to single periods in FI.Valuation diff.Percentage method . You can use the following approaches: Accrual calculation using the percentage method (overhead percentage rate) Accrual calculation using the target=actual method (postings based on the amount of planned accrued costs in actual data. but in CO need to be distributed evenly throughout the periods (valuation differences. For example. but are not entered in FI (additional costs. You can calculate accrued costs in cost accounting using the costs posted there.Additional costs Method: COCOOM © SAP AG 1999 COCOOM .Accrual in FI . You can calculate accruals in two ways: You can post accrued costs by recurring entry in Financial Accounting and thus pass them on to Controlling. such as accrued rent). such as annual oil costs). either dependent or independent on activity) (C) SAP AG AC412 4-11 .Calculation of Accrued Costs FI Expense = Costs COCOCEL FI COCOCEL Accrued costs: . . These could also be costs that are incurred for CO.Target=actual method for accrual calculation Expenses are often allocated differently in Financial Accounting (FI) than in Controlling (CO).

Before you define a target=actual accrual calculation. Plan activity-dependent primary costs under a target=actual cost element. and inserts the target values in the actual value fields. You plan activity-dependent primary costs using an accrual cost element (cost element category 4) for the following: Cost centers for which you want to calculate accrual The time period in which you want to execute accrual calculations When calculating accrual in actual. 2.000 h Production Actual: 11 000 1. The target costs of a cost center or activity type are determined using the following calculation: Fixed plan costs plus variable plan costs. the System determines the target costs of the relevant cost center based on an activity type. Plan Costs Activity Dependent: 489 000 Accrued Costs: 5 000 fix 5 000 var. In target=actual accrual calculation.200 h 4. The activity-dependent plan costs are used in target cost calculations to determine the accrual amounts for the target=actual method. (C) SAP AG AC412 4-12 . you determine which credit object (cost center or order) is credited for each target=actual cost element. This method is particularly useful where you can plan accrual on a period basis and where the costs are activity-dependent. Run activity type planning for the cost centers and activity types. you must: Create target=actual cost elements (category 4). multiplied by the operating rate of the activity type of the cost center. IMG: T=A Accrual: Assign credit object to cost element 489 000 Order Execute accrual 5. Cost element category 4 MaH Actual activity: 1.Target=Actual Accrual Methods Plan activity: 1. 3. 5 000 fix + 5 000 var * 120% = 11 000 Order Actual: -11 000 © SAP AG 2001 The target=actual method is used for the accrual calculation of activity-dependent costs.

Fixed quantities . WBS elements. cost objects..Fixed quantities based on tracing factors per receiver . 3.. and can be changed. You define the processing methods for each segment. using specific keys. 3 Receiver input is automatically posted Distribution of the sender activities: . Cycle Flow: . . Cost centers function as senders in indirect activity allocation.Posted quantities . The costs are allocated using a secondary cost element from category 43.Percentages . 4. manual allocation of activity. you can use one of two allocation methods: If you can calculate the total activity for the sender. use activity type category 3 (manual entry. Cycle definition: Cost Center Cat. or business processes. Different methods can occur together in one cycle.Actual costs . indirect activity allocation uses segments and cycles to define sender and receiver relationships. In the same way as all other periodic allocation methods. (C) SAP AG AC412 4-13 . The corresponding segment must use the "Posted quantities" sender rule. you need to define keys to be used for the automatic periodic allocation of actual activities. internal orders.Indirect Activity Allocation in Actual Data (Category 3) Enter sender activity Cost Center 1. Unlike the direct. The receivers of an indirect activity allocation can be cost centers.Actual activity . Cost Center Indirect activity allocation automatically assigns activities in the actual data. indirect allocation).Allocation of actual activity per cycle rules © SAP AG 2001 3. If activities are to be posted to a sender object.Actual statistical key figures 2. use indirect activity allocation to distribute the posted activity quantities from the senders to the receivers. The cost element assignment is defaulted from the master data of the activity type for the cost center/activity type plan.. Depending on the activity type category. All receiver rules are valid here except "fixed quantities".

(C) SAP AG AC412 4-14 . to determine how the activities of the sender should be distributed. indirect allocation). the R/3 System determines the activity using the following methods : The sender activity quantity is derived from the receiver tracing factors (with global or a weighted factor that is defined per sender) or from the corresponding entries in the segment definition (as a fixed sender or receiver quantity).Inversely calculated .Fixed quantities . This quantity is then credited to the sender and debited to the receivers accordingly. Cycle definition: Derivation of sender activities from: ∑ of tracing factors .. Cycle Flow: . When the cycle is run.. Cost Center Plan any tracing factors If you cannot calculate the actual activity quantity for certain activity types.Statistical key figures . the sender-specific weighting factors mentioned above are calculated with the sender values function (Default Value = 1).. or the identical sender and receiver rules "Fixed Quantities".Indirect Activity Allocation in Actual Data (Category Two) Cost Center 2. The affected segment must either use the sender rule "Inversely Calculated Quantity" along with any receiver rule.Activities .Costs . This second form of indirect activity allocation uses activity type category 2 (indirect entry.Allocation of actual activities to sender and receiver © SAP AG 2001 2. 2 automatically posted 1. If you use sender rule for inversely calculating the quantity. the system first calculates the allocation bases of the receivers.Sender values: x per tracing factor Sender activity and receiver input are Cost Center Cat. 3. The sum of the tracing factors multiplied with the "sender values" is the total activity of the sender.Percentages . or if this is too time-consuming. Distribution of the receiver quantities based on tracing factors .

Template allocation can be made to a cost center independent of the activity and/or depending on the activity.Actual Template Allocation Statistical Key Figures Primary Costs Cost Center Activity Functions Template Cost Center ∫ ∑ π∗ 1 i= m m ∞ 27 Cost Center Activity η Activity Ω i Additional SAP Data © SAP AG 1999 External Systems Template allocation is used to calculate the quantities consumed by the receiver cost centers. The costs are calculated by valuating the quantities with prices. and business processes. These functions make it possible to reference specific field contents or apply complex algorithms to operative data from the R/3 system. cost objects. the receiver objects for template allocations can be profitability segments. In addition to cost centers and cost center/activity types. You make this assignment by entering a template in the master data of the cost center. (C) SAP AG AC412 4-15 . To calculate the required data. A requirement for template allocation to a cost center is that a template must be assigned to the cost center. the template uses R/3 standard or user-defined functions. The allocation is based on periods and fiscal years.

You can use it to set the value of an item to active or inactive. to define conditions that are checked during the evaluation or to set requirements for allocations. You can enter a constant value for the factor. It consists of a table (row/column) structure. In activity-independent template allocation. The planned fixed quantities represent fixed consumption quantities that you enter as constant values or have the system calculate automatically at the time of evaluation. (C) SAP AG AC412 4-16 . or allow the system to calculate it automatically at the time of evaluation. You can enter an object yourself (such as cost center 1000 and activity type 1410) in the object column. or you can have the system determine this for you during evaluation (for example. quantities are calculated based on template © SAP AG 1999 A template is a dynamic tool that uses functions and formulas to calculate values and that determines the result of Boolean expressions (true or false). the variable quantity factor determines the planned sender output quantity by multiplying the output quantity of the receiver object with the variable factor.Template Definition Template ∫ ∑ π∗ m 1 i= m ∞ 27 η Ω i Template Object Activation Condition Actual: Variable Actual: Quantity Factor Fixed Qty Function Function Type CCtr/AT 1000/1410 Which cost center/ activity type? Under what conditions? ∫1 i∑m = m ∞ 27 η π ∗ Ω i Variable allocation quantity factor Fixed allocation quantity Actual Template Allocation: When condition met. the cost center of a specific cost center category).

The receivers plan their activity input of the activities produced by the cost centers. the system calculates the target activity output for the receiving cost centers. i ac t put y in vit 2.Plan your activity relationships as usual. and is updated as the variable actual activity quantity. or 3 in the planned data. The target=actual method requires a completely reconciled plan at period level. The procedure for target=actual activity allocation is as follows: . Target=Actual Activity Allocation: actual activities of the sender based on the operating rate of the receiver © SAP AG 2001 Plan activity Production 2 MaH Actual activity The target=actual activity allocation is a particular type of indirect activity allocation for actual quantities. This results in the target activity of the sender cost centers. In contrast to the other forms of indirect activity allocation. The sender cost centers plan their activity output and use activity type category 1. The target=actual allocation is iterative. Category 1 is normally used. 5 (Actual) Plan activity act ivit y in pu t Actual acty/ Plan activity qty = Operating rate 3. (C) SAP AG AC412 4-17 . Using this rate and the (fixed/variable) plan activity output.After posting the actual activities to the receivers. which means that recursive activity relationships are taken into account.Target=Actual Activity Allocation (Cat. This gives you your planned activity network. This actual allocation requires the use of the actual activity type category 5 (target=actual allocation). . 5) Sender activity and receiver input are posted automatically 1.2.The variable portion of the plan activity quantity is adjusted by the target=actual activity allocation for the receiver cost centers/activity types. The fixed part is transferred from the plan to actual in the target=actual activity calculation. it uses iterative (step-by-step) calculations based on the activity network and the operating rate as a tracing factor. the system can determine an operating rate. Energy Cat. Plan acty qty Production 1 MaH Actual activity 4. . .

When planning activity input. of which the receivers consume an actual quantity of 120. First. 5 (Actual) Plan: 125.Target=Actual Activity Allocation: Example 1. target=actual activity allocation is primarily used if the service cost center's activity is directly dependent on the operating levels of the primary cost centers.000 kwh (plan 100 kWh) and 23. the target=actual activity allocation of a energy cost center is described: 1. 3.000 kWh (plan 50 kWh) respectively. In the example on the slide. an operating rate can be derived for each production cost center (in this case: 92% and 120%).000 kWh (plan 100. Target=Actual Activity Allocation © SAP AG 2001 As a rule. After the actual activities have been posted to the receivers (machine hours).000 kW h 92% 2.0 g ra y = 120 in erat ctiv it Op al a ble ria Actu va h kWh KW 00 . Result: The energy cost center produces an actual quantity of 125.000 kWh). Production PC Plan: 1. all cost centers plan their activity output. 20 % 00 te: 1 .000 h MaH Actual: 1. The variable input quantities are multiplied by the operating rate and corresponding actual postings are made. the fixed planned input quantities are posted in the actual data. the two production cost centers determine how many kWh they want to consume. 120% Energy kWh Cat. .200 h 3.00 0 kW Ope hv rati ari Act ng ab rate ual le acti v ity = 92 % = 23 3.0 100 4. During target=actual activity allocation. 4. (C) SAP AG AC412 4-18 . Production Chip Plan: 350 h MaH Actual: 320 h 3.000 kWh 25 . 2.

Actual Cost Allocation: Summary You are now able to: Describe the concept of actual activity allocation Perform transaction-based activity allocations Explain and use the techniques of periodic activity allocation © SAP AG 1999 (C) SAP AG AC412 4-19 .

and allocate them according to statistical key figure “produced units” to the production cost centers. You want to make certain postings and allocations at period-end closing that were not possible to do manually because they could not be measured or because the effort to measure them would have been too great (activity type categories 2. you will be able to: • Execute transaction-based postings and activity allocations • Use the target=actual procedure for accrued cost calculations • Describe the concept of entering sender activities • Configure and use automatic periodic procedures for activity allocations. Additionally. Allocate and post the activities of the energy cost center (category 5) using the operating rate of the receiver. 3 and 5). such as indirect activity allocation or target=actual activity allocation After closing the planning. post various costs in the current period to your cost centers.Exercises Unit: Actual Cost Allocation At the conclusion of these exercises. allocate your activity types from category 1 to the receiver (based on transactions). • 1 1-1 Transaction-Based Postings Preparation: Change your user settings so that the analysis period for planning and the reporting period are set to the current period. G/L account posting: 1-2 (C) SAP AG AC412 4-20 . • Post the sender activities of the quantity assurance cost center (category 3). This ensures that the activity fluctuations of the production cost centers affect the consumption of energy activities. Post the accrued costs from both production cost centers using the target=actual procedure using the operating rate of the receiver cost center.

00 V ENE 41 D 15. Choose the V0 (no control) control indicator and enter the following items. Make the posting using the current date and choose the entry variant with cost center.00 ENE 4-21 . To simplify the process. Check your entries before making the posting.00 V ENE 41 D 2.0 V ENE 43 (C) SAP AG D AC412 5. you can select the Template AC412a and replace the cost center number with your number. G/ Debi Amou Cost 40 D 3.Enter the following actual postings for your cost centers in the current period.

47 D 1.0 QUA 47 D 2.00 V PC# 4-22 .00 V QUA 42 D 60.0 PC# 47 (C) SAP AG D AC412 5.00 V QUA 42 D 8.50 V ENE 41 D 6.00 QUA 43 D 10.0 PC# 43 D 40.

To simplify the transaction.5 CHI 43 D 10.200 100 4-23 .00 V CHI 11 C 203. allocate them all to order AC412.0 CHI 47 D 3. 1-3 Activity allocations Allocate the activities of your production cost centers PC## and CHIP## directly to a production order.42 D 32. Execute the allocation in the entry variant “Order” and enter the following in the list entry: Sender Cente r Sender Activi ty Type MAH## SETH## Receiver Orde r Un Total quan tity PC## PC## (C) SAP AG AC412 AC412 AC412 H H 1.

As these costs fluctuate depending on activity.CHIP## MAH## AC412 H 320 2 Period-end closing allocations 2-1 Target=Actual Method for Accrual Calculation The cost centers PC## and CHIP## there is a yearly cost for waste disposal related to production. you want to accrue the costs evenly over the months. (C) SAP AG AC412 4-24 . Which object serves as the accrual object for the target=actual accrual for cost center PC## (note: the cost center belongs to business area 1000). use the target=actual accrual method 2-1-1 Analyze the cost element 489000. accrued costs). Which cost element category contains the cost element? 2-1-2 Go to the planning overview for your cost center PC##: Which fixed and variable costs are planned under this cost element (489000) for the current period? Name the activity type (activity dependent) for which you are planning. You have already planned these accrued costs under cost element 489000 (misc. C C A Fixed P l a n n e d C o s t s Variable Plan ned Cost s 4 P 2-1-3 Check the target=actual accruals in Customizing. Because these costs occur only once a year.

Accrual object: _______________________ 2-1-4 Check the operating rate of cost center PC## for activity type MAH## using the Plan/Actual Variance Report. Value (C) SAP AG AC412 4-25 . Which costs are posted in actual to the cost centers under cost element 489000? Describe the results of the actual cost calculation for cost center PC## Cost element 489000 C A Total Va lue Fix. C A A P Operating rate (=%Variance + 100) P M % 2-1-5 Execute the accrual for the current period and both of your production cost centers (H_PROD##) in an update run.

P M Calculation for PC## with activity type MAH##: 2-1-6 Check the results of the accrual in the Plan/Actual Variance Report for cost center PC##. However. but you can not enter which receiver cost centers consumed these activities (too complex). you must determine a weighted average/ratio that reflects the inspection effort. you can enter the exact actual activity per period (sender activity). As different units are produced (PC’s and Chips). (C) SAP AG AC412 4-26 . Which costs are posted to the cost centers in actual for the current period? Cost C Actual C o s t s Plan C o s t s PC# 4 2-2 Indirect Activity Allocations General Description: For the cost center Quality Assurance (QUAL##). you know from experience that the quality assurance hours depend on the number of produced units.

To do this. which you create under a new run group AG## (“with Parallel Processing”). Using weighting factors. Based on your experience. under today's date. Receiver Ce nte r PC## CHIP## 2-2-3 Cycle processing: General Explanation: Statistical key fig ure NPROD NPROD Quantity 120 400 You want to allocate the activities of cost center QUAL## to the production cost centers. Define the statistical key figure NPROD as the receiver tracing factor. In the first segment (S1) you define the for the segment header.2-2-1 Sender activities: Enter the sender activities for cost center QUAL## for today (160 h of activity type QUAH##). you determine that cost center PC## (for example. Assign the cycle to a cycle run group. 100% of the actual posted quantities are to be allocated according to the receiver tracing factor Variable portion based on the actual statistical key figure. Since the activity type category is Actual 3. you can enter this sender activity. This ensures that all cycles can run in parallel in the course. 2-2-3-1 Create a cycle named ILVQ## beginning at the start of the current fiscal year. you use the quantities already entered. This statistical key figure serves as the basis for the allocation of quality checks. The allocation of these posted quantities should automatically occur every period through the use of indirect activity allocation. (C) SAP AG AC412 4-27 . 1000) requires ten times as much effort as cost center CHIP## (for example. that takes the corresponding defaults into consideration. and distribute them to the receiver cost centers (cost center group H_PROD##) using the statistical key figure NPROD. and therefore you apply a weighted ratio. 100). you know that inspections for PC’s take 10 times as much effort as they do for Chips. Enter the cost center QUAL## with the activity type QUAH## as sender and the cost center group H_PROD## as receiver. 2-2-2 Enter the statistical key figure NPROD (produced units) for both production cost centers PC## and CHIP##.

Document number: _____________________ What amount was credited to Sender QUAL##? QUAL## > (C) SAP AG AC412 4-28 . From the overview go directly to the cost accounting document that you generated. What quantities are allocated from the sender? How many quality hours are posted to the receiver? S R Q h C h P h Explain the quantity calculation Repeat the cycle in the update run. Change the overview layout so that the columns Last changed by. 2-2-3-3 Go to the cycle overview and display all cycles for indirect actual activity allocation. Cycle run group and Last executed on are also displayed. 2-2-3-2 Run your cycle ILVQ## in the test run for the current period.Check and save the cycle.

you use the target=actual activity allocation. What quantity of energy activities ENH## are to be transferred (fixed and variable) to receivers PC## and CHIP##? C A RR Fixed Var. This allows you to determine the activity flow from the sender relative to the operating rate of the receiver cost centers.C H IP ## QUAL## > P C ## 2-3 Target=actual activity allocation for cost center ENER##: General Explanation: As you cannot exactly measure the activity of the energy cost center. Q u a n t i t y E E CHI M kWh kWh E E PC# M kWh kWh (C) SAP AG AC412 4-29 . 2-3-1 Enter cost center ENER## in the planning overview for the current period. but still want to distribute it fairly to the receiver.

Post the results __________ % (C) SAP AG AC412 4-30 . and your cost center group H_TECH## in version 0 What operating rate did cost center ENER## have in the current period? Operating rate from ENER##. C A A Pl Operating rate (%Varianc e+ 100 ) P M h % C M h h % 2-3-3 Execute Target=Actual activity allocation in test run for the current period.2-3-2 Use the Actual/Plan Variance report to analyze the current operating rate for the receiver cost centers PC## and CHIP## in the current period.

Sender / Ac tivi ty Ty pe ENER## / E N H# # Receiver/Activ ity Type Qty Valu / (C) SAP AG AC412 4-31 .2-3-4 Use the Actual/Plan Variance Report to determine which actual costs from cost center ENER## were allocated to the receiver PC##. Go to the line items of cost element 639200 and choose display variant “Activity Allocation”.

Before saving. 1-2 G/L account posting: Accounting > Finance > General Ledger > Posting > Post G/L Account Enter Document Date: Choose: today’s date Screen variant: "With cost center" Choose Template AC412b and change the cost center numbers.Solutions Unit: Actual Cost Allocation 1 Transaction-Based Postings 1-1 Preparation: User Settings CCA: Information System > User Settings Planning period: Select the current period and fiscal year. Reporting period: Select the current period and fiscal year. Save and return. ensure that all values are correct and then choose: Post G De Amou Cost (C) SAP AG AC412 4-32 .

00 V QUA (C) SAP AG AC412 4-33 .0 V ENE 4 D 5.00 ENE 4 D 1.4 D 3.50 V ENE 4 D 6.00 V ENE 4 D 2.00 V ENE 4 D 15.

00 QUA 4 D 10.00 V QUA 4 D 60.00 V PC# 4 (C) SAP AG D 32.0 PC# 4 D 5.0 QUA 4 D 2.0 PC# 4 D 40.5 AC412 CHI 4-34 .4 D 8.

200 100 320 4-35 .0 CHI 4 D 3.00 V CHI 1 C 203. Sender Center Sender Activity Type MAH## SETH## MAH## Receiver Order AC412 AC412 AC412 AC412 Unit Total quantity PC## PC## CHIP## (C) SAP AG H H H 1. Disregard possible warning messages by pressing enter.4 D 10. Enter the given items. 1-3 Activity allocations CCA: Actual posting > Enter activity allocation Choose the screen variant Order Choose the list variant.

Post the allocations. 2 Period-end closing allocations
2-1 Target=Actual Method for Accrual Calculation

2-1-1 Analyze cost element 489000 CCA: Master Data > Cost Element > Individual Processing > Display Cost element 489000 4: Accrual according to Target=Actual Cost Element Category:

2-1-2 Planning overview of cost center PC## CCA: Information System > Reports for Cost Center Accounting > Planning Reports: Cost Centers: Planning Overview Cost center: Period: Version: Execute Enter the values given in the table PC## current period 0

C

C

A

Fix

Planned v a ri a bl e C o st s

4

P

M

5,0

5,000

(C) SAP AG

AC412

4-36

2-1-3 Accrual object for Target=Actual accrual IMG: Controlling > Overhead-Controlling > Cost Center Accounting > Actual Posting > Period-End Closing > Accrual > Target=Actual Method > Maintain Target=Actual Credit: Maintain Target=Actual Credit Cost element 489000 Detail Screen Objects in company code 1000 and business area 1000 are defined by Order: 9AEUDE1000 T

2-1-4 Operating rate of cost center PC## CCA: Information System > Reports for cost center accounting > Cost centers. Actual/plan variance Cost center: Period: Version: Execute PC## current period in current year 0

C

A

A

P

Operating rate

(=Variance + 100) P M 1, 1, 120 %

(C) SAP AG

AC412

4-37

2-1-5 Execution of the accrual: CCA: Actual postings > Period-end closing > Individual Functions > Accrual Cost center group: Period: Execute Cost element 489000 C A Total Va lue Fixed Val ue Update Run H_PROD## current period in current fiscal year

P

M

11,000

5,000

The fixed costs (5,000) are posted in Actual as planned. The variable plan costs for hazardous waste are multiplied with the operating rate and posted in Actual (5,000 * 120% = 6,000). This posting results in the above order being credited. All FI postings regarding hazardous waste will then be posted to this order. 2-1-6 Results of accrual calculation CCA: Information System > Reports for cost center accounting > Actual/PlanVariance Cost center: Period: Version:
(C) SAP AG

PC## current period in current fiscal year 0
AC412 4-38

Execute

Cost

C

Actual C o s t s

Plan C o s t s

PC#

4

11,000

10,000

2-2

Indirect Activity Allocations 2-2-1 Sender activities CCA: Actual Postings > Enter Sender Activities Go to the list screen. Sender Center: Activity Type: Activity Quantity: 160 h Save 2-2-2 Enter statistical key figure NPROD CCA: Actual Postings > Statistical Key Figures > Enter Go to the list screen. QUAL## QUAH##

Receiver Ce nte r PC##
(C) SAP AG

Statistical Ke y Fig ure NPROD
AC412

Qty

120
4-39

01.Cost Center: Sender Activity Type: QUAL## QUAH## Variable portions Actual statistical key figures 100% Posted amounts Actual values Allocation Quality ## ILVQ## Start date: 01. 2-2-3 Cycle processing: 2-2-3-1 Create Cycle NPROD 400 CCA: Period-End Closing > Individual Functions > Allocations > Indirect Activity Allocation Create additional cycle Cycle: Enter Text: Enter Segment name: S1.Indirect Activity Allocation (IAA) Quality ## Sender values: Rule: Portion: Receiver tracing factor: Rule: Type: Sender/Receiver: Sender . Current fiscal year Attach segment Receiver – Cost Center Group: H_PROD## Receiver tracing factor: Variable portion type): Statistical key figure: Actual statistical key figures NPROD Receiver weighting factors (per 100) (C) SAP AG AC412 4-40 .CHIP## Choose Save.

2-2-3-2 Execute Cycle CCA: Period-End Closing > Individual Functions > Allocations > Indirect Activity Allocation Periods: Fiscal year: Cycle: Enter Select Test run Execute Results: S er: current to current Current fiscal year ILVQ## -160 h Q ##: 40 h (C) SAP AG AC412 4-41 .CHIP##: PC##: 100 1000 (Produced units of PC’s require 10x as much effort to inspect as Chips.) Header Screen Check Save Goto > Cycle Run Group: Enter AG## and choose Create Text: Enter “with parallel processing” Confirm with Enter Save Return Save the entire cycle and exit screen.

and then choose Execute selection Change the overview layout so that the fields "Previous Processing" and "Cycle run group" are added to the display.200 allotments (posted statistical key figure NPROD = 120 pieces) * 10 (weighting factor) 2-2-3-3 Cycle Overview CCA: Period-End Closing > Individual Functions > Allocations > Indirect Activity Allocation Additional > Cycle > Display Overview Select "Indirect activity allocation" and "actual". Reason: The 160 h from cost center QUAL## (posted actual quantities) are allocated as follows: CHIP## receives 40 h: Calculation basis: 400 allotments (posted statistical key figure NPROD = 400 pieces) * 1 (weighting factor) PC## receives 120 h: Calculation basis: 1. Select the cycle and choose "Previous Processing" Enter Document number: ____________________ Double-click on the document: QUAL## > C H I P # (C) SAP AG ~7 (40 h * 193 Planned Price) AC412 4-42 .120 h Repeat the cycle in an update run.

# QUAL## > P C # # ~ 23 (120 h * 193 Planned Price) (C) SAP AG AC412 4-43 .

E E CHI M - - E E PC# M - - (C) SAP AG AC412 4-44 .2-3 Target=actual activity allocation for cost center ENER##: 2-3-1 Planning overview for cost center ENER## CCA: Information System > Reports for cost center accounting > Planning reports > Cost Centers: Planning Overview Cost center: Version: Execute ENER## 0 Time period: Current period in current fiscal year C A R- R F Var.

2-3-2 Operating rate for receiver cost centers PC## and CHIP## CCA: Information System > Reports for cost center accounting > Cost Centers >Actual/Plan-Variance Cost center: Period: Execute PC## current period in current year C A A Pl Operating Ra te (Variance + 10 0) P M 1 120 % C M 3 35 91 % (C) SAP AG AC412 4-45 .

Actual/plan variance Cost center: Period: Version Execute Select the line item for cost element 639200 (allocated actual costs) Double-click (C) SAP AG AC412 4-46 ENER## current period in current fiscal year 0 . (periods 6-9: 128%) Post the results. and 350 h in the remaining periods.C M 3 20 160 % ** ** Cost center had planned activities of 200 h in periods 6-9. 114 % 2-3-4 Results of the target=actual activity allocation CCA: Information System > Reports for cost center accounting > Cost centers. 2-3-3 Execute target=actual activity allocation CCA: Period-End Closing > Individual Functions > Allocations > Target=Actual – Activity Allocation Cost center group: Version: Time period: TEST RUN Execute H_TECH## 0 Current period in current fiscal year Business processes: None Operating rate from ENER##.

choose: Display variant Secondary costs: Activity allocation Sender / Ac tivi ty Ty pe ENER## / E N H# # Rece Qt Value PC# - .19.920 Planned Price 0.000 kWh (C) SAP AG AC412 4-47 . In the line item.166 * 120.Choose the Actual Line Items.

Period-End Closing Contents: Plan/Actual Comparison Target Cost Analysis Variance Analysis Actual Price Revaluation Marginal Costs © SAP AG 1999 (C) SAP AG AC412 5-1 .

© SAP AG 1999 (C) SAP AG AC412 5-2 . you will be able to: Explain the various methods of managing costs for responsibility areas in R/3 Use the period-end closing scenario that is appropriate for your company Discuss and analyze alternative period-end closing scenarios.Period-End Closing: Unit Objectives At the conclusion of this unit.

Period-End Closing Activity Allocation: Concept and Master Data Advanced Planning Techniques Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 5-3 .

you are mainly interested in a target cost analysis that examines how the actual costs vary with the operating level. Because the operating levels in your company may fluctuate. You wish to use extended variance analysis to determine the causes of cost variances.Period-End Closing: Business Scenario The plan and actual costs have been entered and allocated. and now you want to utilize various cost control and analysis methods offered by the R/3 System. You also learn how to allocate marginal costs for mid-term cost controlling. the activities revaluated for the receivers. if needed. Actual prices should be calculated for some activities and. © SAP AG 1999 (C) SAP AG AC412 5-4 .

you will be able to: Analyze and evaluate standard reports such as plan/actual comparisons Explain the limitations of plan/actual comparisons Explain the application goals and possibilities of the enhanced R/3 analysis and allocation tools © SAP AG 1999 (C) SAP AG AC412 5-5 .Period-End Closing: Plan/Actual Comparisons: Topic Objectives At the conclusion of this topic.

For activity types/cost centers and constant period prices (in this case.100 900 10. For cost centers that allocate activity-related costs using plan prices.000 23. you can analyze the balance of the cost center: This specifies the debits on the cost center and how much of these debits the cost center has passed on.000 -20. the allocated costs are in line with the target credits as opposed to the actual activity (see above illustration). If the cost center has assessed all its costs. The information system plays a crucial role here.Cost Center Balance Cost Elements 415100 External activities 404000 Spares 430000 Salaries * Debit 619000 DIAA Repair * Credit ** Under/Overabsorption Actual Costs Plan Costs 12. Therefore.000 -28.100 900 How high are the cost center results? Under/Over Absorption (Balance Act. indirect activity allocations. (C) SAP AG AC412 5-6 . In the plan/actual comparison (in the Under/Over Absorption Actual Costs column). a review of the simple analytical functionals is advisable at this point . the balance is usually transferred to Profitability Analysis using assessment.000 Costs (C) Allocated Actual Costs Actual Costs Plan Costs C (Plan) Cfix (Plan) Reasons? an = Pl ice /h Pr 200 © SAP AG 2001 h (Plan) Activity (h) As soon as all periodic allocations are executed (accrual allocations. (absol.000 -20.000 Var. so that you can master the more advanced fucntions covered later in this unit.000 -8.000 -8.000 UNI). assessments.000 10. distributions.000 0 3. the balance is zero. The Controlling functions available depend on the functions you have used during the period and the cost accounting system that you implement. Costs) -5. 200 UNI/quantity unit). periodic repostings.) 2.000 -5.000 20.000 10. target=actual activity allocations) you can execute closing analyses for your areas of responsibility. A negative balance (as shown above) shows that the actual costs incurred were less than the activity costs debited to the receiver (-5.000 -28.

000 10. That is. (C) SAP AG AC412 5-7 .000 -20.100 900 Plan/Actual Comparison (Debit Side) 3.) 2.000 Allocated Actual Costs Costs (C) C (Actual) C (Plan) Actual Costs Plan Costs Cfix (Plan) e ic Pr an /h Pl 200 = © SAP AG 1999 h (Plan) Reasons? Activity (h) A simple way to judge the efficiency of a cost center in standard costing is to do a plan/actual comparison on the debit side.000 -8.000 -8.000 20.000 23.000 Var.000 -5.000 -28. this report does not take into account the output of the cost center. However.000 0 10.000 -28. higher costs were actually incurred than were planned. the actual costs exceed the planned costs by 3.000 -5.000 UNI. The actual costs are compared directly with the planned costs in this case. so we cannot realiably judge its efficiency from this data. (absol. In the above report.100 900 10.000 -20.Plan/Actual Comparison: Debit Side Cost Elements 415100 External activities 404000 Spares 430000 Salaries * Debit 619000 DIAA Repair * Credit ** Under/Overabsorption Actual Costs Plan Costs 12.

100 900 10.000 -8.000 20.) 2.000 -28. (C) SAP AG AC412 5-8 .000 -5. The illustration shows a simple case with only one activity type that is allocated with an iterative plan price of 200 UNI.Plan/Actual Comparison: Credit Side Cost Elements 415100 External activities 404000 Spares 430000 Salaries * Debit 619000 DIAA Repair * Credit ** Under/Overabsorption Actual Costs Plan Costs 12. the variance on the credit side is negative.000 Costs (C) C (alloc.000 Var.000 10.) Allocated Actual Costs Actual Costs C (Plan) Allocated Plan Costs Cfix (Plan) ice Pr an 0/h Pl 0 =2 Reasons? © SAP AG 1999 h (Plan) Activity (h) The plan/actual variance on the credit side tells us what costs were allocated as compared with the planned allocation for the cost center.000 -20.000 23.100 900 Are the allocated costs higher than the planned costs? (credit side) -8.000 10.000 -20.000 0 3. This means that the receivers of the activities (or costs) of the cost center are burdened with higher debits than planned.000 -5. In this example. (absol.000 -28.

Period-End Closing: Extended Scenario Target Cost Analysis Operating rate Actual Price Calculation 1 Target/actual comparisons Variances -> result 3 Cost centers should be completely credited Variances -> activity receiver Actual costing Variance Analysis Causes of variances Marginal Costs 2 Variance reports Variances -> result 4 Activity allocation with variable prices Fixed-cost allocation in blocks (predistribution of fixed costs) Variance analysis © SAP AG 1999 Variances -> result You can use various methods in R/3 for advanced analysis of responsibility areas. but not with revaluation at actual prices. The appropriate method depends on the company's goals and its cost controlling approach. (C) SAP AG AC412 5-9 . you can combine marginal cost allocation with variance analysis. tools. each with its own distinctive information and effect. goals. four period-end closing scenarios are illustrated below. required steps (Customizing) and the ideal procedure relevant in each case. For example. The scenarios are designed to clearly illustrate the importance. In certain cases these scenarios can be combined with each other. Therefore. You will find more detailed information in the following scenarios.

you will be able to: Explain the concept of continuous calculation of target costs Interpret target/actual comparisons of cost centers Use target cost analysis as an instrument for cost and activity controlling in cases of operating fluctuations © SAP AG 1999 (C) SAP AG AC412 5-10 .Target Cost Analysis: Topic Objectives At the conclusion of this topic.

Target costs are those expected for certain activities. The target costs are determined based on the cost center's plan costs and the activities rendered (operating rate).Target Cost Analysis: Objective Target Cost Analysis Objective: Analyze cost centers with regard to actual operating level How high is the operating rate of my activities? Target/actual comparisons: How have costs changed relative to the operating rate? How do I interpret the target/actual variance of my cost center? © SAP AG 1999 To enable detailed analyses of the actual costs. Cost center analysis is based on the target costs. and is given as the ratio (in percent) of the actual activity to the plan activity. (C) SAP AG AC412 5-11 . the number of activities actually used as compared to those planned in the cost center must be considered. The operating rate indicates the actual capacity utilization of an activity by a cost center.

404000 Replacement 430000 Salaries * Debit 12.000 23.000 0 -1.000 24.000 ** Under/Overabsorption -5.000 -28.000 -20.000 10.100 900 10.900 900 Plan costs: Remain constant Actual costs: Increase with resource consumption Target costs (variable): Increase with own activity 10. Target costs that appear in the standard report Target/Actual Comparison are calculated as follows: Debit side: Activity-independent planned costs: Plan costs = (fixed) target costs Activity-dependent planned costs: Fixed planned costs = fixed target costs Variable planned costs * operating rate = variable target costs (Secondary costs are calculated using fixed or variable quantities) Credit side: Target credit = allocated quantities * iterative plan prices (full cost basis) (C) SAP AG AC412 5-12 . This makes it possible to obtain an actual/target comparison before the end of the period.000 14. Target costs deviate from the plan costs only when activity-dependent planning has taken place.000 20.000 Activity-Based Calculations of Target Costs/Cost Center Debit side: Fixed plan costs + Variable plan costs (or qty) * operating rate = Target costs Credit side: = Target credit (actual qty at full cost prices) © SAP AG 1999 The system can continuously calculate the target costs directly.000 -1.(abs) 415100 External acty.000 -28. Increases in target costs and actual activities of an activity type are correlated for the cost center.000 10.000 -20.Target Costs: Concepts and Calculations Cost Elements Actual Costs Target Costs Plan Costs T/A-Var.000 -4.000 * Credit -28.000 -1000 619000 DILV Production -28.

Furthermore. When the actual costs are higher than the target costs. along with the respective operating rates.000 100. this can be due to the following reasons: The actual costs are too high The actual activity quantity is too low (C) SAP AG AC412 5-13 .000 Target Costs 185. You can analyze the actual and target costs for each area.Target Costs: Areas of Responsibility Production Production: Actual Costs 200. such as cost centers and cost center groups.000 ---------------------------------------------------------------------MaH Operating rate: 60% © SAP AG 1999 Target costs can be used in reporting to represent various areas of responsibility. The above example shows how target costs can provide more detailed information than the plan costs.000 Plan Costs 200.000 Computer Production Computer Production: Actual Costs Target Costs Plan Costs 120. you can see the appropriate activity types for each area.000 125.000 100. The Variation function allows you to go from one area of responsibility to another.000 60.000 --------------------------------------------------------------------MaH Operating rate: 120% SetH Operating rate: 130% Chip Production Chip Production: Actual Costs Target Costs Plan Costs 80.

000.900.10.000. The above report shows that the cost center incurred less costs than it should have at the same level of operation. the incurred cost center costs are compared with those that should have been incurred.10. which then works out favorably for the sender cost center (negative variance 4.23.T/A-Var.000.(abs) -1.000 UNI).10.24. Debit Side t cr rg e Ta ed it 619000 DIAA Production -28. These are variances of the estimated costs (target costs) that are debited too high or too low to the receiver.000.000.000.000 What costs were over or under allocated? => Balance Target Costs © SAP AG 2001 100 hrs (plan) 140 hrs (actual) Activity (h) The target/actual variances from the target cost analysis are used to check the economic variances of the debit side. or too low (compared to the target costs).900.000 UNI).- Costs (C) Allocated Actual e Curv Costs Cost t e Targ Target Costs C (Plan) Actual Costs Planned Costs Cfix (Plan) 100/hr le variab Fixed costs 10. (C) SAP AG AC412 5-14 .-28.000.- What costs were incurred? => Target/Actual Variance. even though more actual costs are shown than plan costs.000 UNI). the over/under absorption value details what costs were allocated too high.000.000.000.000. the receiver is allocated with activity costs that are too high (4. This stems from a higher level of activities than planned.000.000.000.- -4.900. Here.-20. The illustration shows that the balance (under/over absorption of actual costs) is the sum of the target/actual variances for the debit side plus the under/over absorption of the target costs.Target .Actual Comparison Cost Elements 415100 External activities 404000 Spares 430000 Salaries * Debit Actual Costs Target Costs Plan Costs 12.000.0.* Credit -28.** Under/Overabsorption -5. In the example above.000. The target/actual comparison report shows the operating rate for each individual activity type of the cost center. The cost center had a favorable (negative) target/actual variance for the debit side (-1.-20.- -1. Furthermore.-1.000.20.000.14.-28.100.10.

(C) SAP AG AC412 5-15 . The actual costs for activity-independent planning would always equal the plan costs. you should first execute plan reconciliation to calculate the exact prices to be allocated. this analysis is easy to perform and offers current target cost calculations. activity-dependent cost planning and plan price calculation Cost and activity allocation Target/actual comparisons Variances -> result COPA © SAP AG 1999 Normal sequence for target cost analysis: The period-end closing scenario with target cost calculation differs from standard analyses in that the actual activities. To fully interpret the results.Target Cost Analysis: Procedure Target Cost Analysis Create activity types Activity planning. are examined to evaluate the cost center's performance. The balance of the cost centers is normally transferred to profitability analysis. Aside from that. and not just the actual costs. as is the case with plan/actual analyses. You can obtain meaningful target costs that increase with the actual activity output (and thus favorably affect the cost center) only with activity-dependent planning.

you will be able to: Explain actual cost splitting and how to execute it Distinguish between the variance categories of the input side and the output side Explain the causes of the variances Implement variance analysis effectively © SAP AG 1999 (C) SAP AG AC412 5-16 .Variance Analysis: Topic Objectives At the conclusion of this topic.

Variance Analysis: Objective

Variance Analysis
Objective: Accurately determine the causes of the variances
Actual cost splitting: How are the actual costs distributed across the activities? Variance categories: What caused the variances? Variance reports: Who is responsible for the variances?

© SAP AG 2001

Variances are caused by differences between actual and target data. If you want to analyze the causes of the cost center variances described in the previous unit in more detail, you can use a tool available in R/3 for automatic variance calculation. This tool is especially useful when the target-actual variances do not, by themselves, reveal the causes of the differences and show who carries the responsibility for them. Automatic variance calculation involves a number of steps. You must differentiate between the system configuration in Customizing, which is a prerequisite for variance calculation, and the additional steps executed during variance calculation itself. The latter include: Target cost calculation Actual cost splitting Once you complete these steps, the R/3 System can calculate the variances. You can also run actual cost splitting independent of variance calculation. However, if you calculate variances, the R/3 System performs these steps automatically.

(C) SAP AG

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Actual Cost Splitting

FI

CO

What was the real cost of my activities?

CO

Actual Costs:
(not assigned to activity type) - Primary costs - Secondary costs
Example: Salaries 10,000

Production

?

MaH

Salaries 10,000

SetH

?
Fixed - variable?
© SAP AG 2001

Actual costs in Cost Center Accounting are normally posted only to the cost center, and not to the combination 'cost center/activity type' (see unit on actual allocations). However, to calculate variance or the actual price, you need to distribute the actual costs to the activity types. In the actual data, you need to split these activity-independent costs among the activity types before the variance analysis. The aim of splitting actual costs is to determine the total cost for the activity types. This is required for the variance calculation, which can be calculated for each cost element and activity type/cost center. Actual costs are also split to enable a target/actual comparison when the costs are separated into fixed and variable portions. Actual costs are automatically split into two steps. The system's internal process is described on the following slides.

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Actual Cost Splitting: First Step
Actual Cost Splitting per Cost Element
Cost Elements 430,000 CCtr.
Cost center Cost center Cost center Cost center Cost center Cost center

Acty. h

Plan Costs 10,000 fxd

Target Costs 10,000 fxd

Actual Costs 10,000 ?

404,000

h

-

-

900 ?

1.
415,100 h

Operating rate
10,000 variable 14,000 variable

=

2.

3.

12,100 ? 12,100 variable 4.

Prerequisite: Activity-dependent planning of the Splitting according to target costs cost element First Step:
(per cost element or cost element group) © SAP AG 2001

Consequences:
Distribution to the activity type(s) according to target costs: Fixed/variable ratio as in plan

First splitting step: In the first step, the cost center's actual costs are divided up among the activity types according to the target costs per activity type. This step takes place for each cost element. Thus: Primary costs are distributed according to target costs. [Ext.] Secondary costs are distributed according to target quantities, if these exist. If not, they are distributed according to the target costs. If target costs do not exist for a cost element, costs are split according to the target costs of the assigned cost element group (in the customizing of the target version). All target costs of cost elements in this group are used for splitting. If no target costs exist for the entire group, the costs are split in the second step. If a cost element has activity-dependent and independent planned costs, they are split and distributed to the activity type/cost center in the same ratio that they were planned. The actual costs that have been split to the cost center remain there for the second splitting step. The actual costs (planned as activity-dependent) are distributed in fixed and variable portions in the same ratio as they were planned.

(C) SAP AG

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Actual Cost Splitting: Second Step
Actual Cost Splitting per Cost Element
Cost Elements
430,000

CCtr.
Cost center Cost center Cost center Cost center Cost center Cost center

Acty.
h

Plan Costs
10,000 fxd

Target Costs
10,000 fxd

Actual Costs

1.

10,000 ?

2.

3.

10,000 fixed 4.

404,000

h

-

900? 900 fixed

415,100

h

10,000

14,000

12,100 variable

Second Step:
Splitting based on splitting rules:
- Activity quantity - Statistical key figures - Capacity - Output... or

or:
no existing -independent Prerequisite: planning of the cost element Consequences: existing splitting the actual costs activity among the activity type(s) -independent using splitting rules planning of the cost element (actual fixed costs)

equivalence numbers
© SAP AG 2001

A second splitting step is necessary if: No target costs or target quantities exist for the cost element or cost element group. In this case, there is no tracing factor for the split (for example, no planning for the cost element exists). Activity-independent target costs (or quantities) exist. In this case, the portion of actual costs remains on the cost center, corresponding to the portion of activity-independent target costs (target quantities) of the total target costs (target quantities). In the second step, the actual costs that remain in the cost centers are distributed to the activity types, according to splitting rules, which you can set up yourself. If no rules are defined, the cost center costs are divided up among the activity types, using equivalence numbers (similar process to that used for plan cost splitting).

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AC412

5-20

In the second splitting step. Variance calculation/activity type 2.Actual Cost Splitting: Result Actual Cost Splitting / Cost Element Cost Elements 430.. (C) SAP AG AC412 5-21 .000 fxd Actual Costs 10.) Result: all actual costs for the cost center are assigned to the activity types. The system requires the correct and complete assignment of the costs to the activity types.000 Cost center CCtr. The system merely breaks the costs down into fixed and variable costs. The requirements for the variance analysis (and the actual price calculation) are filled.100 Cost center h 10. TOTAL Cost center h 20. Actual price calculation/activity type © SAP AG 2001 The result of the second splitting step means that All cost elements in actual data are distributed to the activity types (if required).000 (fixed/var.000 var. Prerequisites for: 1. 14. Plan Costs 10.100 var. h Acty.. Activity types that are directly assigned to an account are not included in the first splitting step.000 var.000 fxd Target Costs 10.000 24.000 23.000 Cost center h - - 900 900 fixed 12. the activity-independent costs are distributed to activity types that are directly assigned to an account. Special case: Assigning activity types directly affects the actual cost split as follows.000 fixed 404. Plan or target costs are comparable to actual costs at the activity level.000 ? 10. 415.

determine the cost element group on which actual cost splitting is based in the first step. and determine the variance variant on which variance calculation is based. This total arises when the debits to the cost center are not the same as the credits from the activity allocation (actual cost minus allocated actual costs). Create variance variant and assign it to the target cost version In the variance variant.Variance Calculation: Categories = Cost Center Balance Total Variance Input Side Input Price Variance + Output Side Output Price Variance Input Quantity Variance Output Quantity Variance Resource-Usage Variance Fixed-Cost Variance Remaining Input Variance Remaining Variance © SAP AG 1999 Variance calculation is a tool that helps you analyze problematic variances. you specify which variance categories you want the system to calculate. As an option. Variances belonging to variance categories that are not activated in the variance variant are reported as remaining variances. (C) SAP AG AC412 5-22 . System requirements for variance calculation Create target cost version Determine the version from which the plan and actual data is read or in which the split actual costs and the variances are posted (in CO-OM only with version 0). The following data is reported: Variances on the input side (actual costs minus target costs) Variances on the output side (target costs minus allocated actual costs) The sum of these variances is the total variance and therefore the balance of the cost center. It enables you to compare actual costs and the allocated actual costs with the target costs.

900 900 -1.000 -20.000 Prices? Quantities? Structure? u rv e 619000 DILV Production -28.000 * Credit -28. The corresponding indicator is selected in the relevant cost element and cost center.000 Why have my actual costs changed in relation to the target costs? Variance on the input side 100 hrs (plan) 140 hrs (actual) © SAP AG 1999 Activity (hrs) Comparison of the target costs with the actual costs of the cost center: Variance categories on the input side The input side includes the sum of all debits and some of the credits of the cost center.000 -4. You will get a warning message while assigning quantities to an account if: 1.000 Allocated Actual Costs 14.000 0 -1.100 900 10.000 -20. or 2. Credits such as repostings belong to the input side because they can be interpreted as a reduction in the costs of activity production. 404000 Replacement 430000 Salaries * Debit Actual Costs Target Costs Plan Costs 12.000 c ost et c g Tar Costs C (Plan) Target Costs Actual Costs Plan Costs 100/hr el variab Fixed costs 10. (C) SAP AG AC412 5-23 . The quantity indicator is selected in cost element planning The variance categories of the input side are then shown with cost elements.000 -28. The variances on the input side are divided into the following variance categories: Price variances Quantity variances Resource-usage variances Remaining input variances In order to calculate price and quantity variances. the system must know both quantities and costs.000 -28.000 10. Credits due to activity allocations belong to the output side.000 20.000 23.(abs) -1.000 24.Variance Analysis: Input Side Cost Elements 415100 External acty.000 10.000 T/A-Var.000 10.000 ** Under/Overabsorption -5.

A resource-usage variance will occur if you post an unplanned cost element in your actuals.and overconsumption of cost elements.Variances: Input Side Target Actual Category Input price variance Responsibility external? Input quantity variance internal? Cost elem. Cost elements that react quickly to price changes are recorded by quantity. These variances represent differences between target costs and actual costs caused by lower or higher quantities being consumed than were planned. other categories not active © SAP AG 1999 Input price variances result from changes in costs due to price fluctuations. the difference between actual costs and target costs can be traced to increased consumption. For many organizations. Remaining input variances are differences between target costs and actual costs that cannot be assigned to any of the above categories. For cost elements subject to only minimal price changes. or if no actual data exists for a planned cost element.000 Resource-usage variance internal? Repairs Remaining input variance Minor differences. which ensures an exact calculation of input price variances and input quantity variances for these cost elements. 417. Resource-usage variances result from different inputs being used than were planned. Input price variances represent differences between target costs and actual costs due to discrepancies between the planned and actual prices of materials or services. Input quantity variances result from under. Remaining input variances will occur if you deactivate one of the above variance categories in the variance variant. This procedure (C) SAP AG AC412 5-24 . the remaining input variance category often represents the classical consumption variance (input quantity variance). Input price variances include variances caused by both price and quantity differences.

(C) SAP AG AC412 5-25 . but lets you display results for individual cost elements.reduces the requirements for entering plan and actual data.

(C) SAP AG AC412 5-26 .000 24.000 -20.000 23. use of manually set prices.000 -280. The variances on the output side are broken down into the following categories: Output price variances Output quantity variances Secondary fixed-cost variances Remaining output price variances The output prices of the activity types can be managed by implementing the following: Use of average prices.000 -20.000 -28.(abs) -1900 900 r tc ge r Ta ed it 619000 DILV Production -28.000 10.000 T/A-Var.Variance Analysis: Output Side Cost Elements 415100 External acty. 404000 Replacement 430000 Salaries * Debit Actual Costs Target Costs Plan Costs 12.000 10.000 Allocated Actual Costs Target Costs Actual Costs Plan Costs -4.000 Costs (C) C (Plan) Prices? Quantities? Fixed Costs? c ost et c g Tar u rv e Cfix (Plan) 100/hr el variab Fixed costs 10. use of the capacity instead of the planned quantity in price calculation.000 * Credit -28. difference between target credit and allocated actual costs that results from a variance between the actual activity and the allocated activity.000 0 -1.000 ** Under/Overabsorption -5. Allocated actual costs are compared with the target costs from the output side.000 -1.000 20.100 900 10.000 14.000 Why were the expected costs not allocated? Variance on the allocation side © SAP AG 1999 100 hr (plan) 140 hrs (actual) Activity (hrs) Comparison of the target costs with the allocated actual costs of the cost center: Variance categories on the output side The output side includes all debits from the activity allocations of the cost center.000 10.

100 fixed 14. 14.000 var. If the quantity can be measured exactly. 10.Average prices are used instead of period-based prices .A manual price is used Output quantity variances result from discrepancies between target costs and allocated actual costs due to the use of allocated activity quantities which are not measured exactly on the sender cost center during allocation (indirect activity allocation). average price) Measured: 4960 kwh Allocated 5000 kwh Output quantity variance Measured quantity ≠ quantity of allocation (example: indirect activity allocation) 10. Remaining variances will be reported if you deactivate one of the input-side or output-side variance categories in the variance variant.000 fixed 100 var.Variances: Output Side Target Allocated Category Output price variance Iterative Manual Description Changed prices (such as manual price. other categories not active © SAP AG 1999 An output price variance occurs if you use a price that differs from the plan price that is calculated iteratively each month based on planned activity.000 var. A difference results in an output quantity variance. 100 fixed Fixed-cost variance 100 hrs 140 hrs With operating fluctuations: through proportioned fixed costs. The system only reports a fixed cost variance if the operating rate is not 100%. allocated fixed costs too high or too low Remaining variance Minor differences. (C) SAP AG AC412 5-27 . The target credit (= plan price times actual activity) therefore deviates from the actual credit (= allocated price times actual activity) of the cost center. Fixed-cost variances occur when the actual operating rate varies from the plan operating rate and some of the planned fixed costs are either underabsorbed or overabsorbed due to the credit postings.000 fixed 100 var. An output price variance can occur in the following cases: .Price calculation is based on the capacity of the activity type . Remaining variances are discrepancies between target costs and actual costs that cannot be assigned to any of the above categories. it can be entered on the sender cost center and then compared with the allocated quantity.

you can perform variance calculation. You can execute variance analysis in the application. and activity variances in the actuals. the target cost version must be entered in plan version 0 where variances are posted for overhead cost controlling. To determine quantity and price variances precisely. you must first create a target cost version in Customizing that specifies a variance variant (determination and use of variance categories). This automatically performs an actual cost split in order to bring all costs to the activity types. or after postings are made in the information system for individual costs centers or also cumulated for cost center groups. then you must consider performing actual price calculation. (C) SAP AG AC412 5-28 . you should activate the indicator Record quantity for the corresponding cost elements and cost centers (or during planning). Furthermore. but are normally posted to profitability analysis using assessment. If you want to perform subsequent adjustments of your variances to the receiver. The variances are not allocated further. postings. After executing the planning.Variance Analysis: Procedure Variance Analysis Target cost version and variance categories Indicator: Record quantity Create activity types Activity planning and price calculation Cost and activity allocation Actual cost splitting Variance analysis: Categories Variance reports Variances results © SAP AG 1999 COCOPA Model procedure for variance analysis: To analyze variances.

Describe revaluation at actual prices in Product Cost Controlling © SAP AG 2001 (C) SAP AG AC412 5-29 . you will be able to: Describe the significance of actual price calculation and its procedures Configure and execute actual price calculation. Use the cost component split in Overhead Cost Controlling.Actual Price Calculation: Unit Objectives At the conclusion of this topic.

the system calculates a purely iterative actual price without revaluating the activity flows. Cost and price planning (plan prices) are not necessarily required for actual cost allocation. or by changing the previous allocation postings. borne by the activity receivers Actual prices: What was the real cost of my activities? Actual cost component split: What caused the changes in the actual prices? Revaluation: Should the cost center variances be carried by the products or the receivers of the activities? © SAP AG 2001 The actual prices are calculated during period-end closing. and revaluates the difference between the existing plan price valuation and actual price valuation. Objective: Actual prices are to be calculated and. if required. The quantity flow is initially posted without valuation.Actual Price Calculation: Objective Actual Price Calculation: Act. (C) SAP AG AC412 5-30 . The revaluation can take place in your own data records. Activities that return to Cost Center Accounting through orders are also revaluated. Requirements for actual price calculation: Processing the settings in the version for the actual price calculation and revaluation. Setting the actual price indicator (for each activity type to be revaluated) to 5 or 6. This is only possible if the corresponding orders are settled periodically to cost centers. Orders or projects (such as those in CO-PC) can also be revaluated if you trigger the revaluation from the corresponding application. For activity types that do not have this indicator. The valuation with actual costs occurs at period-end by means of the actual price calculation.

Procedure for Price Calculation: The price differs per period because the costs are divided by the activity quantity for each respective period. (C) SAP AG AC412 5-31 . The actual price is calculated as follows: First. Costs: 52. This method ensures that the sender cost center is fully credited at the end of each period. The cumulative price is calculated by dividing the cumulative costs of the current and previous periods by the cumulative activity quantities. This method can yield different prices.Actual Price Calculation Activity Output: Actual price indicator: 5: Actual costs / actual activity or 6: Actual costs / capacity or 7: Manual actual price : No actual price Service: Act. Costs: 77. Costs: 24.000 500 0 kW h MaH Production: Fixed/variable actual prices based on the split actual costs 200 MaH Act. the calculated actual prices are used to valuate other activity flows in an iterative process. until the exact price for a cost center has been calculated. the system revaluates the activity input of other cost centers. Using the resulting preliminary price. In the following steps.000 RueH 50 RueH © SAP AG 2001 During the actual price calculation. Adjustment postings are made in the current period for allocations posted in previous periods. the system includes all the activity flows between cost centers and calculates the price iteratively by dividing the actual costs by the actual activity. This levels out price fluctuations during the fiscal year. The cumulative price can only be used for actual data.500 100 SerH SerH 20 Se rH 0 20 Wh 0k 50 SerH Energy: kWh 10 MaH Act. the primary costs are divided by the activity quantity.

000 © SAP AG 2001 The activity allocation to a receiver cost center means that many different cost elements can be represented by a single secondary cost element in one posting.000 (33%) Fxd assets 5.000 kWh Act. Using the cost component split for activity price calculation enables the activity price to be clearly structured on the receiver. 1.000 (28%) Material 10.000 (12%) ∑ 25. You do this by using the switch layout. in determining the portion of personnel costs and depreciation costs included in the price.000 Depr. You can deactivate the component split for certain cost centers/activity types for actual data in the same way as in the plan cost component split.000 Actual activity: 24. (See also slide in the unit on "Extended Planning Methods").000 Accruals: 3. This assigns the allocated costs to a new cost element.000 kWh Actual Costs: Wages: 12.000 Activity: 24.000 Material: 10.000 ∑ 25.000 (40%) Material 10.000 Activity: 25.000 (17%) Accruals 3.00 UNI 1.000 ∑ 30. price Cost Components: Personnel 12.25 Planned activity: 25.000 Material: 10. the actual cost component split of the sender is transferred to the receivers in such a way that the receivers also have an exact component split of their activity.000 kWh Act. (C) SAP AG AC412 5-32 . When this allocation is valuated at an actual price.000 Accruals: 3.000 (10%) ∑ 30. for example.: 5.000 Depr.Actual Cost Component Split of the Prices Cost Center Energy: Plan Costs Wages: 7.000 kWh UNI Plan price Cost Components: Personnel 7. This is useful.000 (20%) Accruals 3.000 (40%) Fxd assets 5.: 5.

The transaction can be found in the corresponding applications. The revaluation is updated in the original data record. Executing the revaluation using the actual price calculation and the revaluation transactions. (C) SAP AG AC412 5-33 . you have to use the revaluation transaction. (setting: 'original business transaction') To revaluate internal orders. you have to set the revaluation indicator in the version. The revaluation will then automatically occur during the actual price calculation. business processes. This enables you to compare the results of actual costing with those of standard costing. and profitability segments. You have the following options when using this revaluation: The difference between the allocation valued at the plan and actual prices is posted under a separate data record (setting: 'with separate transaction'). maintenance orders.Revaluation of CO Objects using Actual Prices Revaluation using Actual Price Calculation Revaluation using Own Transaction Cost Center Act. The revaluation data is always stored in a separate record on the System data base. and so on. production orders. You can differentiate between the following revaluation options: To revaluate cost centers. price AT Internal Orders Production Order Maintenance Order Projects Cost Center Cost Object WBS Elements Processes Production Cost Collector Profitability segment © SAP AG 2001 Networks When calculating the actual price you have the option to revaluate actual activities with actual prices. You can use this approach if there are no plan prices. networks. means that the sender cost center can be fully credited. meaning the original allocation was not valued. WBS elements.

(abs) -1.000 -28. you can contrast the various prices in the price reports.900 900 619000 DIAA Production-23.000 -28.000 -4.000 * Credit -23.000 -20.000 ** Under/Overabsorption Should the variances be carried by the curve Plan cost receivers? Total Variance = 0 0 Costs (C) C (Actual) C (Plan) C (Act. Only one additional allocation price variance is stated. all variances are passed on to the receiver.000 10.000 UNI before. /h 164 New: Actual price (fixed/variable) h (Plan) h (Actual) Activity (h) The results of the revaluation transactions are shown in the above report. that it brings the original total variance to 0. By adjusting the original allocated prices from 200. If needed.000 -20. which were 28. are reduced to 23.actual price (here.Actual Price Revaluation: Result Cost Elements 415100 External activities 404000 Spares 430000 Salaries * Debit Actual Costs Target Costs Plan Costs 12. fxd) Cfix (Plan) Act. The input variances remain unchanged in the variance analysis. The original receivers have a credit calculated thus: consumed quantity x original price . the allocated costs now reflect the actual costs exactly. the actual price calculation can support the actual price purely iteratively.000 14. Here. if you set the corresponding indicator accordingly.000 10. costs = Allocated Actual Costs Ac © SAP AG 2001 = ce pri t. When all revaluation transactions are executed. Thereby. Even if you do not want to execute any revaluations.000 UNI.00/hour).000 T/A-Var. No revaluation is executed for activity types with actual price indicators 5 or 6. (C) SAP AG AC412 5-34 . the credits to the cost center.000 24. You can analyze the variances of the cost center afterwards as well. 36.000 23.000 -1.UNI to 164UNI. the balance of the cost center will be reduced to 0. The illustration clearly shows this.000 10.000 0 -1.100 900 10.000 20. which is so high.

you must set this in the corresponding application. When creating activity types that should be revaluated. trans. If you want to revaluate your cost object at the end of the period. Actual Price Calculation Activate revaluation in version original bus. You can also enter a cost component structure. then you must first execute an activity plan and an activity dependent cost plan. procedure for price calculation Create activity types Set actual price indicator to 5 or 6 Optional activity planning and plan price calculation Cost and activity allocation Actual cost splitting Actual price calculation (and possibly revaluation) Optional revaluation of orders © SAP AG 2001 Typical process for actual price calculation/revaluations: If you want to execute revaluations for actual prices for the purpose of actual costing. which provides more detailed information on the composition of the actual prices. All quantitative preliminary allocations will then be executed without valuations. If you do not want to execute any planning. trans. you must at least maintain the cost center's planned activity with the corresponding activity type (create master records for combination cost centers/activity types). As a requirement for the actual price calculation. or analyze fixed or variable including actual prices. you must execute the actual cost splitting or set the indicator 'actual cost splitting' in the basic setting for the price calculation. If you want to work with preliminary plan prices. you must activate either the price indicator 5 or 6. you must activate the corresponding indicator and procedure in the version. (C) SAP AG AC412 5-35 . <-> own bus. which differentiates itself only in the calculation of the fixed portion of the price (basis activity or capacity).Actual Price Calculation: Procedure Act.

you will be able to: Explain the business reasoning behind marginal cost allocations in CO-OM Describe the concept of and procedure for predistribution of fixed costs Configure and use the predistribution of fixed costs in overhead cost controlling Explain what needs to be considered for special cases of predistribution of fixed costs.Marginal Costs: Unit Objectives At the conclusion of this topic. © SAP AG 2001 (C) SAP AG AC412 5-36 .

such as company codes. The focus of marginal costing is more on variable costs. Marginal costing can support concept decisions such as 'make or buy'. but are dependent on time. or the cost centers who requested or planned the corresponding activity input. if these are to be settled to a cost center in the planning data. This problem can be resolved in Cost Center Accounting by predistributing fixed costs. for example. depending on the activity quantity. (C) SAP AG AC412 5-37 . The fixed costs should not be allocated proportionally because they do not increase with increases in activity. Receivers of predistributed fixed costs can also be cost centers and business processes.Marginal Costs: Objective Marginal Costs Objective: No proportional allocation of fixed costs in overhead cost controlling Activity types with predistribution of fixed costs: What is the cost of an additional activity unit (marginal costs)? Predistribution of Fixed Costs: Should fixed costs be allocated in blocks? Variance analysis: What effect does the predistribution of fixed costs have on my cost center results? © SAP AG 2001 Marginal costing is a relatively modern cost accounting system. be required on different hierarchy levels. plants. which can change at short notice. that does not consider fixed costs in fair cost allocations. There are several ways of assigning fixed costs by cause: A source-related assignment of fixed costs can. Senders of activity types with predistributed fixed costs can be cost centers. or clarify short term lower price limits. You cannot used plan integrated orders or projects as receivers for this. product groups. then fixed costs are predistributed to the receiving cost center. However.

.600 Cust. .400 Variable . plan cost splitting. serv.1. you need a reconciled plan that calculates the fixed and variable cost portions of prices. The illustration shows an example of a plan that has been reconciled with a sender and two activity receivers.Predistribution of Fixed Costs: Planning What is the cost of an additional activity unit? (marginal cost) Production 60 h Plan Debit: 60 h ProgramProgramming 10 fixed predistribute fixed costs Program.800/ 60h .800 30 var. It is important to do the planning as activity dependent for specific costs or activity consumption because this is the only way to calculate the variable portion of the price.200/ 40h 40 h Customer Service Plan Debit: 40 h Fixed Program. The price of the activity (10 fixed and 30 variable) is debited to the receivers in the same proportions. the activity input in programming hours consumed by the receivers is completely variable.1. you need to execute plan reconciliation. and plan as described in the unit Advanced Planning Techniques. Fixed 600 Var 1. 400 Var 1. and plan price calculation. (C) SAP AG AC412 5-38 . To complete the planning. Plan Credit: 100 h Fixed Prod. You can do this by selecting the indicator predistribution of fixed costs for the activity types in the master records or the planning.200 © SAP AG 1999 For exact predistribution of fixed costs. As can be seen.

Predistribution of Fixed Costs: Actual Activity Allocation 80 h * 30 var. and the result debited to the receivers and credited to the sender. Plan Credit: 100 h Fixed Prod. Fixed 600 Variable 1.1.400/ 80 h predistribute fixed costs Progr. .400/ 80 h . Production Plan Debit: 60 h Progr. the sender cost center is credited only with its variable costs. only the variable costs (variable prices multiplied by activity quantities) are debited to the receiver cost centers.200/ 40h 30 h * 30 var.200/ 40 h Actual Credit: Prod.400 Actual Debit: 80 h 2. Customer Service Plan Debit: 40 h Progr. In the above example.900/ 30 h Actual Debit: 30 h Progr. Cust. . 110 h . Likewise.1. the actual quantity flows are multiplied only with the variable activity price. Fixed 400 Variable 1. Variable . The cost center for programming carries its own fixed costs.Serv. 900/ 30 h © SAP AG 1999 If the predistribution of fixed costs indicator is selected for an activity type.800/ 60 h .600 Cust.2. The planned fixed costs of the sender cost center are not allocated at this point.800/ 60 h ProgramProgramming 10 fixed 30 var. (C) SAP AG AC412 5-39 . This approach debits the receiver cost centers Customer Service and Production only with the additional units of costs (marginal or variable costs) of 30 UNI.Serv.

Actual Debit: 80 h 2. in a reconciled activity plan.200/ 40 h Program. . . 400 Variable 1. In a predistribution scenario. To predistribute the fixed costs. Predistribution is based on the assumption that.2.600 Cust. sender cost centers provide activities only because receiver cost centers have planned those activity requirements. you must first complete planning. Predistribution of fixed costs transfers the fixed costs of the plan credits and debits to actual postings. and then distribute these costs as actual costs to the cost centers that planned the activity inputs. Cust.400 Customer Service Plan Debit: 40 h Fixed Program.800/ 60 h . This guarantees that plan fixed costs are covered regardless of the operating rate. 600 Plan Credit: 100 h Fixed Prod.Serv. If you use predistribution of fixed costs. you can avoid fixed-cost variances. 600 Variable 1. Predistribution is then executed with separate transactions for certain cost centers or cost center groups.400/ 80 h . It can also be executed within plan price calculation if the corresponding indicator is set. 400 900/ 30 h The predistribution of fixed costs transaction distributes the plan fixed costs as actual fixed costs to the cost centers that planned the corresponding activity inputs.400/ 80 h predistribute fixed costs Variable . Predistribution of fixed costs ensures that costs incurred through additional capacity becoming available are not allocated on the basis of the operating rate.600 Prod.Predistribution of Fixed Costs: Transaction Production Plan Debit: 60 h Fixed Program. . or for the entire controlling area.200/ 40 h Actual Credit: .1. you define the plan fixed costs in version 0 for each sender activity type of a cost center.900/ 30 h Actual Debit: 30 h © SAP AG 1999 Program. (C) SAP AG AC412 5-40 .400 - 110 h .Serv.800/ 60 h ProgramProgramming 10 fixed 30 var.1.

500/ 50 h Actual Debit: 60 h Program. activity allocation allocates only the variable costs. (See the special case "backflow" in the next slide.such as an order or project . When predistribution is executed.500/ 50 h Orders. 0 Plan Credit: 50 h Fixed Personnel -0 Order -500 Variable -0 / 0 h -1. 2.800/ 60 h Fixed Program.Predistribution of Fixed Costs: Special Cases in Actuals No plan consumption: Actual: 10 h * 30 var. 600 1. Fixed 0 Variable 0/ 0 h ProgramProgramming 10 fixed 30 var. If the receiver is a cost object . Projects (plan-integrated) Order: Actual: 60 h * 40 total Plan Debit: 50 h Actual Credit: -0 Personnel Order -600 70 h . or whether it has planned no activity input at all. If the receiver of the activity is a cost center.800/ 60 h © SAP AG 1999 The following cases may arise in the predistribution of fixed costs: 1.it is debited with the full costs (fixed and variable price multiplied by the activity quantity). Actual Debit: 10 h 300/ 10 h predistribute fixed costs Program. regardless whether the input is activity-dependent or not.) (C) SAP AG AC412 5-41 . 500 Variable 1.300/ 10 h -1. Receiver cost centers that have not planned activity inputs are therefore debited only with the variable costs. This is true regardless of whether the cost center has planned activity input as activity-dependent or activity-independent. only the fixed costs are allocated to the receiver that planned an activity input. Human Resources No plan debit: Program.

the receiver cost center is already debited in the actuals with fixed costs that will also be debited to the plan-integrated order during actual activity allocation. . Activity Var.200 + 600 3. Plan settlement Plan costs + 100 + 300 Actual costs: Actual costs: Fxd Var.100 . the system moves these excess fixed costs back to the sender (backflow) during activity allocation. of fixed costs + 100 5. When orders are settled in the actuals. Predistrib. Such orders and projects are always debited with fixed and variable costs in activity input planning and in actual activity allocation.Predistribution of Fixed Costs: Backflow Plan-integrated order settles to cost center Order predistribute fixed costs 10 fixed 30 var.100 1. fixed costs are predistributed to the receiver cost center. if you settle plan-integrated orders to a cost center in your planning.600 + 200 Actual costs: 4. (C) SAP AG AC412 5-42 .200 . . To ensure that this posting occurs in the correct period. Actual settlement (backflow) + 200 + 600 . Activity allocation 5. settlement must be period-based for the affected orders. Actual Settlement + 600 © SAP AG 1999 Special case: Fixed-cost backflow for plan-integrated orders that settle to cost centers Orders and projects in integrated planning cannot be used as receivers in fixed-cost predistribution. As a result. Cost Center 1: Activity: Plan: 10 h Actual: 20 h Credit: Plan: Fxd . However.300 input (plan-integrated) Cost center 2 Input: Plan Actual 10 h 20 h Input: Plan Actual 10 h 20 h Plan costs 100 + 300 2.

In the textbook case where the allocated quantity equals the actually measured quantity.or underallocated fixed costs Allocated using actual quantity times variable prices Target Cost Curve Costs Not Allocated C (Plan) Allocated Variable Costs Plan costs Allocated costs = target costs Actual costs e iabl V ar r i ce p plan 00/h =1 Cfix (Plan) Fixed Cost Block Allocated using predistribution of fixed costs x (Plan) © SAP AG 1999 x (Actual) Quantity (x) The illustration shows the allocation of a cost center with an activity type that takes part in predistribution of fixed costs. the allocated costs equal the target costs. In contrast to allocations without fixed-cost predistribution.Predistribution of Fixed Costs Costs (C) Elimination of over. and using constantly allocated iterative plan prices. (Shaded area above is not allocated) There are no fixed-cost variances. If fixed costs are predistributed. therefore. fluctuations in the operating rate do not affect the amount of fixed costs allocated: the allocated fixed costs are always the planned fixed costs. (C) SAP AG AC412 5-43 . activity allocations credit the cost center only with the variable price (100 UNI). In contrast to allocation without predistribution of fixed costs. the fixed cost block also can be allocated to the receiver in the amount planned.

Marginal Cost Allocation: Procedure Marginal Costs Create activity types Do not set indicators for predistribution of fixed costs or actual prices Activity planning. Only variable prices are used for activity allocation between cost centers. No fixed cost variances are displayed there. start the automatic variance calculation. If you wish to analyze variances. plan reconciliation and price calculation Activity allocation (variable prices) Optional predistribution of fixed costs Optional variance analysis Variances via result © SAP AG 2001 Ideal typical procedure for marginal costing allocations in overhead cost controlling: When you create the activity types. There may be too many or too few fixed costs allocated to the orders integrated in the remaining variance. Predistribution of fixed costs (which you also trigger from the plan price calculation) enables you to allocate the planned fixed costs using the same actual value to the receivers. You should not set the "Actual" price indicator because a predistribution of fixed costs contradicts an actual price calculation in the system. (C) SAP AG AC412 5-44 . You should try to plan activity-independent and especially activity-dependent costs as precisely as possible. Before the price calculation. you need to the indicator for predistributed fixed costs in the corresponding activity types. This ensures exact iterative plan prices with fixed and variable components. you should make sure that the activity input quantities from the senders tie in with the activities of the sender by using automatic plan reconciliation.

Period-End Closing: Unit Summary You are now able to: Analyze and evaluate standard reports such as plan/actual comparisons Explain the limitations of plan/actual comparisons Explain the application goals and possibilities of the enhanced R/3 analysis and allocation tools © SAP AG 1999 (C) SAP AG AC412 5-45 .

current period. cost elements 400000 – 699999. • You will use the repair cost center REP## to decide which analysis tools will provide you with the information you need for cost center analysis in overhead cost controlling. you will be able to: • Analyze standard reports such as plan/actual comparisons • Describe how target costs are updated • Configure and use the variance analysis function • Analyze variance categories • Explain the concept of actual price calculation. 1 Target Cost Analysis 1-1 Preparation: In your user settings.Period-End Closing: Exercises Unit: Period-End Closing: Allocations and Analysis Topic: Target Costs. and enter cost center REP## instead. cost center REP##. You will run a number of different scenarios that will provide you with various types of information and results. Which three cost elements have been planned up to now? What values were planned for these cost elements? For which cost element did you set the record quantity indicator? 1-2 (C) SAP AG AC412 5-46 . View the planned values by going to cost element planning (version 0. activity type * [=all]. Check the planned costs No actual costs have been posted to your cost center REP## for the current period. free entry). and Actual Prices At the conclusion of these exercises. delete group H_TECH## from the cost center group. You can choose your analysis tools after learning about advanced planning and the methods for transaction-based and periodic actual costs and activity allocations. and configure and use the function for revaluation at actual prices Which analysis tools are most appropriate depends on your cost management goals. Variances.

What activity quantities (activity type *) were planned in the current period? What price did you calculate earlier for this quantity (the price was automatically transferred into the planning during price calculation)? What activity quantity was scheduled? Compare this with the value in the solutions and make changes if necessary.Cost center: REP## for the current period: Activity Type Cost Element Fixed Plan Costs Variable Fixed Qty Variable Unit Q (If the field for activity type is blank (or #).) Compare your plan with the solution. 1-2-2 Analyze the planned output of your cost center REP## in the planning of the activity output. Interpret the plan costs using the known values (go to the next page in the report). Have any actual costs been posted? Have any activities been output during the period? Interpret the target costs using the known values. Cost center REP## in the current period: Activity Type REPH## 1-2-3 Analyze cost center REP## using the target/actual comparison report in the information system. and change the values if needed. Planned Activity Fixed Price Variable Price Scheduled Activity (C) SAP AG AC412 5-47 . then activity-independent/fixed was planned.

To simplify entry. Use the current date and choose the screen variant with cost center and quantity. allocate 140 hours of activity type REPH## to cost center PC## using direct activity allocation (since the activity type is of activity type category 1). For the tax code.000). Analyze the target costs again for cost center REP##. since the operating rate is 140%? How did the system calculate this? 1-3-2 Cost center REP##.Cost center: REP## Actual costs: Actual activity: Target costs: Plan costs: Interpretation: 1-3-1 From sender cost center REP##. Don’t forget to enter the quantity 110 h in the detail screen of cost center 415100. (C) SAP AG AC412 5-48 . current period Target costs: Calculation: 1-3-3 Now post the actual costs of cost center REP## in component FI. you can use account assignment template AC412b and just change the cost centers to your number ##. select V0 (without tax). Perform the allocation in the screen variant cost center with list entry. How high are the target costs on the debit side (previously 10.

current period Plan/actual variance: (2nd page in report) Target/actual variance: _________% Assessment: favorable / unfavorable ________________________________ Underabsorption / overabsorption: _____________ ________% Assessment: favorable / unfavorable (How much more or less was allocated than the cost center was actually debited?) 2 2-1 Variance Analysis Run variance analysis for the current period for your cost center group H_TECH as an update run (not a test run).000 1. Then answer the following questions: Cost center REP##. the plan/actual variance. 1-3-4 You have now recorded your costs for the entire period.000 23.G/L Account 404000 415100 430000 470000 113100 Debit/Credit Indicator Debit Debit Debit Debit Credit Amnt 900 12. Analyze the balance of cost center REP##.000 Tax V0 V0 V0 Cost Center REP## REP## REP## REP## Qty Unit 110 H Compare all your numbers before you post.100 9. and you want to analyze the efficiency of the cost center using the target/actual comparison report. How meaningful is the total variance for your cost center and activity types? (C) SAP AG AC412 5-49 . and the target/actual variance for the input side.

___________________________________________________ In your opinion. We will now analyze the variances in the information system. Target/actual variance: (Input Side Variance) Favorable / Unfavorable Categories Input side Resource-usage variance: (go to page 3 of the report) Amount: (Cost element) Favorable / Unfavorable Price variance: Favorable / Unfavorable Quantity variance: Favorable / Unfavorable Output side Fixed-cost variance: (C) SAP AG Amount: AC412 Reason: 5-50 . 2-2 In the Cost Centers: Variances report. analyze the variances of your cost center group H_TECH## for the current period. Write down the corresponding figures in the following table. Indicate whether the variances are favorable or unfavorable. Optional: Briefly indicate the reason for the variances (a detailed explanation is given in the solution). which variance side provides the best information to assess the efficiency of a cost center? ___________________________________________________ Save your variances (if they were not saved automatically in the update run). Use variation to go to cost center REP##.

You analyze the results in the information system. Check how close the actual prices were to the planned prices. and price indicator (ascending). and revaluate the previous activity allocations. sort the report by the three columns cost center. the reason for this AC412 5-51 . Post the price calculation and then exit. 3-1 3-2 Look at the settings for revaluation in the settings for the version by fiscal year (Customizing). 3-3 Cost Center CHIP## ENER## PC## PC## QUAL## REP## 3-4 Activity Type Plan Price (PI 1/2) MAH## ENH## MAH## SETH## QUAH## REPH## Actual Price (PI 5/6) Go to the target/actual variance report and look at the actual balances for the current period for your cost center group (H_TECH##). Run the price report only for the current period for cost center group H_TECH##. Go to each cost center using variation. Look at the balances of the cost centers. For a better overview. Was revaluation activated? Execute actual price calculation only for your cost center group H_TECH## as an update run and without business processes. Choose the current period only. activity type.3 Actual Price Calculation: You now want to calculate actual prices for your entire cost center group. Before you run the report. ensure that the prices are displayed in price unit 1 and that only the prices used for allocation are displayed. Analyze the prices in the price report of the information system. What do you notice? Cost Center ENER## QUAL## REP## PC## (C) SAP AG Balance If balance is not zero.

CHIP## (C) SAP AG AC412 5-52 .

B) You cannot plan prices (PI 3) manually. A) Correct B) Incorrect C) Correct D) Incorrect E) Incorrect (C) SAP AG AC412 5-53 . More than one answer is possible for each example. predistribution of fixed costs). you definitely need to set the indicator With predistribution of fixed costs.Period-End Closing: Optional Exercises Unit: Period-End Closing: Allocations and Analyses Topic: Predistribution of Fixed Costs At the conclusion of these exercises. • To clarify the concept of this form of marginal cost allocation (namely. you will be able to: • explain the concept of predistribution of fixed costs in the R/3 Controlling • execute the predistribution of fixed costs • conceptualize and use a scenario involving activity types with predistributed fixed costs • analyze variances that can stem from predistributed fixed costs After explaining and using various scenarios for period-end closing. D) For the price calculation. answer the following questions. E) You can only set the indicator Predistributed fixed costs for activity type category 1. 1-1 Predistribution of Fixed Costs: Planning Which of the following points indicates a planning scenario with predistributed fixed costs? A) The activity types should have indicator Predistributed fixed costs set. you want to discuss the advanced applications available through the predistribution of fixed costs. C) The planning should be reconciled.

B) Only those order integrated into the plan. E) The target=actual activity allocation cannot be combined with the predistribution of fixed costs. A) Incorrect B) Correct C) Incorrect D) Correct 1-4 (C) SAP AG Predistribution of Fixed Costs: Description AC412 5-54 . C) Cost centers that have no planned activity input are generally debited with full costs. C) The transaction predistribution of fixed costs allocates fixed costs in the actual to the receiver orders just as they were planned there as activity inputs (in blocks). even when the activity input in actual contains an activity type with preditributed fixed costs. B) The transaction predistribution of fixed costs allocates fixed costs in the actual to the receiver cost center just as they were planned there as activity inputs (in blocks). D) Cost centers that have no planned activity input are generally debited only with variable costs. which are settled to a cost center support the concept of predistribution of fixed costs. A) Correct B) Correct C) Correct D) Incorrect E) Incorrect 1-3 Predistribution of Fixed Costs: special cases A) Orders that are integrated into the plan can generally take part in the predistribution of fixed costs.1-2 Predistribution of Fixed Costs: Cost and Activity Allocations in Actual A) Activity allocations of activity types with predistributed fixed costs are valued in the cost center only with the variable price portion. D) You can revaluate the variably allocated activity quantities with the actual price calculation using variable actual prices. even when the activity input in actual contains an activity type with preditributed fixed costs.

D) The predistribution of fixed costs provides information regarding costs that arise for additional activity units of a cost center (marginal costing). Without predistribution of fixed costs. B) The predistribution of fixed costs hinders the (variance category) fixed cost variance. C) The sender fixed costs must be further allocated periodically to the receiver cost center (through the predistribution of fixed costs).A) The predistribution of fixed costs allows you to carry out marginal cost allocations (allocations for variable cost portions are valued) between cost centers. activity allocations with proportionalized service cost centers (especially operational fluctuations) can lead to incorrect over or under allocations of fixed costs. A) Correct B) Correct C) Incorrect D) Correct E) Correct (C) SAP AG AC412 5-55 . E) The predistribution of fixed costs is especially useful when you want to avoid fixed costs variances in the service cost centers.

Check your plan against the solution and make changes if necessary. Variances. External activities are given a (C) SAP AG AC412 5-56 . then the planning data is activity-independent (only fixed). Wages (430000) and office/building costs (470000) are fixed.Period-End Closing: Solutions Unit: Period-End Closing: Allocations and Analysis Topic: Target Costs. The external activities (415100) are variable.000 UNI.000 1. The total planned cost is 20.000 10.000 100 h X Variable Fixed Qty Variable Unit Q 1-101 0 Current period in current fiscal year REP## * 400000 to 699999 If the field for the activity type is empty. and Actual Prices 1 1-1 Target Cost Analysis Preparation: User Settings CCA: Information System > User Settings Basic data: Remove cost center group H_TECH## Enter cost center REP## 1-2 Check the planned costs CCA: Planning > Cost and Activity Inputs > Change Layout: Version: Time period: Cost center: Activity type: Cost element: Free entry Overview Cost center: REP## for the current period: Activity Type Cost Element 430000 470000 REPH## 415100 Fixed Planned Costs 9.

000 All fixed and variable plan costs AC412 5-57 .000 in fixed costs and 10.variable quantity whose indicator Q together with unit h causes the system to issue a warning during actual postings to enter a quantity for account assignment.000 in variable costs planned. 1-2-2 Analyze the activity output CCA: Planning > Activity Output/Prices > Change Version: Time period: Cost center: Activity type: Overview 0 Current period in current fiscal year REP## * Cost center REP## in the current period: Activity Type REPH## Plan Activity 100 h Fixed Price 100 Variable Price 100 Scheduled Activity 100 h The price should have been calculated automatically by the price calculation function in the exercise on planning (PI=1): Fixed cost / Plan activity = Fixed price: 10.000 / 100 h = 100/h fixed Variable cost / Plan activity = Variable price: 10. There are therefore a total of 10.000 Since the operating rate = 0: all plan fixed costs (Comparison costs if there is zero output) Plan cost: (C) SAP AG 0 Current period in current fiscal year REP## Interpretation 20. 1-2-3 Target/Actual Comparison Cost Center REP## CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Cost Centers: Target/Actual Variance Version: Time period: Cost center: Execute Cost center: REP## Actual cost: Actual activity: Target cost: 0 0h 10.000 / 100 h = 100/h variable Compare your results against the solution and make changes if necessary.

choose account assignment template AC412b and replace the cost center numbers with your number ##. If desired. (C) SAP AG AC412 5-58 .000 var.(see next page of report on right-hand side) 1-3-1 Activity Allocation CCA: Actual Postings > Activity Allocation > Enter Choose the Choose the Sender: Sender activity type: Quantity: Receiver cost center: Save 1-3-2 Target costs of cost center REP## CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Target/Actual Variance: Version: Time period: Cost center: Execute 0 Current period in current fiscal year REP## screen variant Cost Center list variant REP## REPH## 140 h PC## Cost center REP##.000 10. current period Target cost: Calculation: 24. rate 140% The target costs only changed for cost element 415100. 1-3-3 Actual costs of cost center REP## Accounting > Financial Accounting > General Ledger > Document Entry > Enter G/L Account Document Enter Document date: today’s date Choose: Screen variant: With cost center and quantity Enter the indicated values in the posting screen.000 fixed plan cost + 10. plan cost * oper. since this item was planned as variable or activity-dependent.

000 higher than the actual cost debit) (C) SAP AG AC412 5-59 .G/L Account 404000 415100 430000 470000 113100 Debit/Credit Indicator Debit Debit Debit Debit Credit Amount 900 12.100 9.000 Tax V0 V0 V0 Cost Center REP## REP## REP## REP## Qty Unit 110 H Before saving.17% lower actual costs than target costs Underabsorption/overabsorption: -5000 (allocation was 5.17 % 4.000 1. make sure that all values are correct.000 23. current period Plan/actual variance: (2nd page in report) +15% Assessment: favorable / unfavorable 15% higher actual costs than planned Assessment: favorable / unfavorable 0 Current period in current fiscal year REP## Target/actual variance: -4. Then choose: Post 1-3-4 Target/Actual Comparison of Cost Center REP## CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Target/Actual Variance: Version: Time period: Cost center: Execute Cost center REP##.

The total variance does not say anything about efficiency. since it is only a comparison of the actual costs against the allocated actual costs (underabsorption/overabsorption of the cost center). 0 Current period in current fiscal year H_TECH## (C) SAP AG AC412 5-60 .2 2-1 Variance Analysis Variance analysis for cost center group H_TECH## CCA: Period-End Closing > Single Functions > Allocations > Variances Version: Time period: Cost center group: UPDATE RUN Execute The variances are saved automatically since it is an update run. (We will now analyze these variances in the information system. The variances on the input side provide the most detailed information.) 2-2 Report Cost Centers: Variances for cost center group H_TECH## 0 Current period and fiscal year H_TECH## CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Variance Analysis > Cost Centers: Variances Version: Time period: Cost center group: Execute Choose cost center REP## using the variations.

000.00 target costs As with the target costs.) Allocated costs were too high because of transactionbased allocation with proportionalized prices. . The actual consumption.000.000 (Theoret. so the target quantity for the repair would be 140 h.17% Favorable / Unfavorable Total actual costs lower than target costs (go to page 3 of the report) Amount (cost element) + 900 (404000 replacement) + 1.00 price variance * 110 h = price variance of 1.4.100.000 (415100 external activities) Favorable / Unfavorable 100 h were planned as variable external for a planned activity of 100 repair hours.00 quantity variance Reason: .Target/actual variance: (Input side variance) Categories Input Side Resource-usage variance: Price variance: (415100 external activities) .4. Output fixed + variable 140 h * 100. was 140 h.00). -30 h * 100. But only 110 h were actually consumed (at a planned price of 100.3.100 Favorable / Unfavorable Unplanned consumption of replacement parts Favorable / Unfavorable Price increase for additional purchase of external activities: Plan: 100 h at 100.000 .00 allocated actual costs .00 = 3.1.00 per h (posting 12. the (C) SAP AG AC412 5-61 .100 with qty 110 h) 10.24.00 Quantity variance: Output side Fixed-cost variance: Amount = 28. however.000.00 per h Actual: 110 h at 110.00 140 h * 100.

price indicator (all ascending: 1st button) (C) SAP AG AC412 5-62 Settings for Revaluation 0 (select) H_TECH## Current period in fiscal year No business processes H_TECH## Current 1 Display only the prices used for allocation . (Results are analyzed in the information system) 3-3 Price report in the information system CCA: Information System > Reports for Cost Center Accounting > Prices > Cost Centers: Activity Prices: Cost center group: Period: Price unit: Select: Execute Choose: Process > Sort Ascending > Choose in this order: Cost center. activity type. 3 3-1 Actual Price Calculation IMG: Controlling > General Controlling > Organization > Maintain Versions Version: Settings by fiscal year (level 5) Current year Double-click Revaluation: “Own business transaction” is activated 3-2 Actual price calculation for cost center group H_TECH## CCA: Period-End Closing > Single Functions > Price Calculation Cost center group: Time period: UPDATE RUN Execute Exit price calculation after making the posting.fixed costs should not have been multiplied by the quantity when they were allocated to the receiver (does not apply to predistribution of fixed costs).

602 (-25.94**) 0.50 164.91 193. H_TECH## Current Cost Center ENER## Balance 3.63 (233. -9.204 (-144**) ** The values in parentheses apply only to periods 6 to 9 (C) SAP AG AC412 5-63 .84 190.17 151.33 200. reason Special case: Cost center is not fully credited because the actual price is calculated based on the capacity.39 0.31**) 173.16 (0. Will be 0 if the cost object (order AC412) is revaluated at actual prices.Cost Center CHIP## ENER## PC## PC## QUAL## REP## Activity Type MAH## ENH## MAH## SETH## QUAH## REPH## Plan Price (PI 1/2) 234.66 (132.642 (3.222**) Will be 0 if the cost object (order AC412) is revaluated at actual prices.15**) 133.29 ** The values in parentheses apply only to periods 6 to 9 3-4 Target/Actual Variance Report for Cost Center Group H_TECH## CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Cost Centers: Target/Actual Variance Cost center group: Period: Execute Go to the single value using the variation.08 162. (Fixed preparation costs should not be fully allocated to the receivers) QUAL## REP## PC## CHIP## 0 0 -23.060**) If balance not zero.00 Actual Price (PI 5/6) 205.

Solutions to Optional Exercises Unit: Period-End Closing: Allocations and Analyses Topic: Predistribution of Fixed Costs 1-1 Predistribution of Fixed Costs: Planning A) Correct B) Incorrect C) Correct D) Incorrect E) Incorrect 1-2 Predistribution of Fixed Costs: Cost and Activity Allocations in Actual A) Correct B) Correct C) Correct D) Incorrect E) Incorrect 1-3 Predistribution of Fixed Costs: special cases A) Incorrect B) Correct C) Incorrect D) Correct 1-4 Predistribution of Fixed Costs: Description A) Correct B) Correct C) Incorrect D) Correct E) Correct (C) SAP AG AC412 5-64 .

(C) SAP AG AC412 5-65 .

Summary Activity Allocation: Concept and Master Data Advanced Planning Methods Actual Cost Allocation Period-End Closing: Allocations and Analysis © SAP AG 2001 (C) SAP AG AC412 6-1 .

Course Objectives You are now able to: Differentiate between the various controlling concepts regarding areas of responsibility in R/3 Configure and use the advanced functions for planning and activity allocation Analyze information and effects of various cost accounting systems in overhead cost controlling © SAP AG 1999 (C) SAP AG AC412 6-2 .

Activity-Based Costing AC505 .Recommended Follow-Up Courses AC420 .Profitability Analysis © SAP AG 1999 (C) SAP AG AC412 6-3 .Product Cost Planning AC605 .

Recommended Exercises Repeat the exercises with the IDES or your own data Read the online documentation Read the IMG documentation Read the release notes © SAP AG 1999 (C) SAP AG AC412 6-4 .

Appendix Contents: Optional: Account assignment to activity types Planning: Calculation of variable secondary costs Important system settings in customizing © SAP AG 1999 (C) SAP AG AC412 7-1 .

activity types to which costs were assigned directly are not included in the first splitting step. You can use an activity type as an account assignment object in the following application areas: Purchase requisitions. The system assumes that the costs assigned directly to the activity types were assigned correctly and in full. indirect activity allocation Note that costs assigned to activity types are not included in later distributions.Organization . specify the activity type as an entry field in the field selection strings for the corresponding G/L accounts and in the posting keys. depreciation (activity type in master data of asset).Optional: Activate Activity Type as Account Assignment Object FI HR Actual Costs Cost Center Actual Activity Activity Type CO MM Plan pric e © SAP AG 1999 It is possible to directly assign costs to the activity type of a cost center when actual postings are made. (C) SAP AG AC412 7-2 . reposting of line items. you must go to maintenance of the controlling area in Customizing (under General Controlling . assessments. activity allocation. The system merely breaks the costs down into fixed and variable costs. periodic repostings. Therefore. reposting of costs. purchase orders. In the second splitting step. The direct assignments of costs to activity types has an effect on actual cost splitting (see unit on period-end closing). GR/IR. To assign activity types to accounts during G/L account posting in FI. To be able to assign costs to activity types. payroll (time sheets).Maintain Controlling Area) and select the indicator Account assignment: activity type active in the step Activate components/control indicators. the activity-independent costs are apportioned to the activity types to which costs were assigned directly. reposting of activity allocation.

For this reason. you enter a fixed activity input quantity. (C) SAP AG AC412 7-3 . Calculating the fixed debit for the receiver cost center enables you to set the variable portions of the sender costs to "fixed" for the receiver. the variable debit of the receiver cost center corresponds to the variable activity input multiplied by the variable price.Planning: Calculation of Variable Secondary Costs Receiver consumes 50 h (fixed) variable costs of sender → Fixed costs of receiver Variable price (sender) multiplied by variable consumption (receiver) → Variable costs of receiver Price (Sender) Fixed (receiver) Variable (receiver) Total: 100/ h Fixed Fixed: 50/ h Fixed Fixed Variable Receiver consumes 50 h (variable) of fixed costs of sender → Fixed costs of receiver Variable (sender) Fixed (sender) Fixed: 50 h © SAP AG 2001 Total: 100 h Consumption (receiver) When activity quantities are incurred (regardless of the activity input level provided by the receiver cost center). The fixed debit of the receiver is the sum of the following: The total activity quantity multiplied by the fixed price The input of fixed activity quantity multiplied by the variable price The quantitiy of the activity type (that you entered as a variable activity input) keeps the variable and fixed cost portions of the sender.

System Settings / Customizing I Version / Fiscal Year Settings: Purely iterative price Plan: Period Price <> Average Price Actual: Period Price <> Cumulative Price Revaluation / Business Transactions Cost Component Structure in CO Overhead Cost Controlling Controlling Area / Control Indicators: Activity type is account assignment object (optional) Activate in controlling area FI: Activate in field status variant and posting keys Variances (transaction-based posting of price variances in CO) Maintain Planner Profiles Authorizations. distribution key Maintain planning layout © SAP AG 1999 (C) SAP AG AC412 7-4 .

based on activity quantity. and so on Assign cost centers Alternative: Equivalence numbers in activity type planning © SAP AG 1999 (C) SAP AG AC412 7-5 .System Settings / Customizing II Indicator: Record quantity Default value in cost center and cost element or Set indicator for planning combination Target cost version Control costs: version 0 Define variance categories in variance variant Define cost element groups for first split of actual costs Splitting structure Create structure Assign rule: for example. activity-dependent statistical key figures. capacity.

scrapped Raw materials 2 Operating supplies Spare parts Packaging material consumption OEM products consume Scrapped trading goods External procurement Electricity base fees Electricity usage Water Purchased activity Training courses Provision: Loss of raw materials Direct labor costs Indirect labor costs Idle time pay Salaries Ancillary payroll costs Additional salary costs Pay scale benefits: Vacation allowance Pay scale benefits: Standard annual allowance Pension scheme contribution Pay scale benefits: Employee health insurance Workers’ Compensation Association contribution AC412 9-6 .Cost Element List Cost Element 400000 400001 400010 403000 404000 405000 410000 410001 415000 416100 416200 416300 417000 418000 419000 420000 421000 422000 430000 431000 432000 434000 435000 440000 445000 446000 (C) SAP AG Name Raw materials 1 Raw mat.

road and air) Other travel costs Travel costs: Entertainment Travel costs: Flat-rate tax Travel costs: Advance Travel costs: Cash advance Vehicle costs Office supplies IT Materials Other admin expenses AC412 9-7 .Cost Element 447000 449000 451000 452000 453000 459000 460000 462000 463000 464000 465000 466000 470000 471000 472000 473000 473110 473120 474100 474210 474220 474230 474240 474250 474280 474290 474295 475000 476000 476100 476500 (C) SAP AG Name Employee support costs Miscellaneous personnel costs Maintenance costs: Building Maintenance costs: Machinery & equipment Maintenance costs: Target=actual Other maintenance costs Net worth tax Bill of exchange tax Trading capital tax Motor vehicle tax Miscellaneous taxes Insurance expenses Office & Building Machinery rental Shipping costs Postage Fixed telephone costs Telephone usage Travel costs (flat-rate tax) Travel costs (accommodation) Travel costs (board) Travel costs (rail.

Consultant DAA Sen. Consultant DAA Manager Time recording Payroll accounting Check credit status AC412 9-8 .Cost Element 476900 477000 479000 481000 481100 482000 483000 484000 489000 611000 612000 613000 614000 615000 615500 616000 617000 618000 619000 620000 621000 622000 622500 623000 624000 625000 626100 626200 626300 629000 629010 629020 (C) SAP AG Name Miscellaneous costs Advertising & sales Bank charges Cost-accounting depreciation Low value assets Cost-accounting depreciation Accrued interest Accrued risks Other accrued costs DAA Production preparation DIAA Administration DAA Setup DAA: Internal transport DAA: Repair hours DIAA:Quality DAA Inspection DAA Energy DAA IT Services DAA Production hours DAA Machine costs DAA Engineering DIAA: HR administration DIAA: Site DAA Burn in DAA QA check DAA setup DAA Jr.

Cost Element 629030 629100 629110 629310 629500 629600 629610 629620 629700 629800 629900 630000 631000 631100 631200 631300 631400 631500 632000 633000 634000 635000 636000 637000 638000 638100 638500 639000 639100 639200 640000 (C) SAP AG Name Credit management Paint Dry Test non-stock material Purchase non-stock material Material staging 1 Material staging 2 Goods receipt of non-stock Sales order handling Order confirmation Production order handling General assessment Cafeteria assessment Vehicles assessment HR assessment Corporate Services assessment Cafeteria assessment Telephone assessment IAA Corporate Services IAA Cafeteria IAA Telephone units IAA Telephone (line rental) IAA Vehicles IAA Human Resources IAA Administration IAA Production IAA IT Service IAA Machine costs IAA IT installations IAA Power IAA ABC General AC412 9-9 .

Cost Element 641000 641100 641200 641300 641400 641500 641600 648000 648100 648200 648300 648400 649000 649100 649200 649300 649400 649500 649600 649700 649800 649900 649910 650000 651000 652000 652500 653000 655100 655110 655200 655300 (C) SAP AG Name IAA ABC Others IAA ABC Repairs IAA ABC Machines IAA ABC Burn In IAA ABC Specialist IAA ABC Material IAA ABC Sales ASM. ABC Schedule process ASM ABC Shop floor ASM ABC Assembly standard PC ASM ABC Assembly configurated PC ASM ABC Design ASM ABC General ASM ABC QA ASM ABC Finance & Administration ASM ABC Marketing ASM ABC Sales ASM ABC Inquiries ASM ABC Quotes ASM ABC Production ASM ABC Logistics ASM ABC Maintenance ASM ABC R&D Order settlement Order settlement: Material Order settlement: Internal activity Settlement interest Order settlement: Quality costs Order settlement: Raw materials Order settlement: Other materials Order settlement: Personnel Order settlement: Administration AC412 9-10 .

DC WIP Balance .DC Valuated revenues Cost of sales: Overheads Creation WIP overhead costs Cost of sales: Production costs Creation WIP overhead Cost of sales S&A Creation WIP S&A WIP direct costs Usage WIP direct costs WIP overhead costs Usage of WIP: Overhead costs WIP Production costs Usage of WIP: Production costs WIP S&A Usage WIP: S&A Capitalized profit Revenue in excess of billings Creation of reserves: Direct costs Usabe WIP: Direct costs Creation of reserves: Overhead costs Usage WIP: Overhead costs Creation of reserves: Production costs Usage WIP: Production costs Creation of reserves: S&A Usage WIP: S&A Build up reserves for imminent loss Usage reserves for imminent loss AC412 9-11 .Cost Element 655400 666000 671110 671111 671112 671115 671120 671121 671130 671131 671140 671141 672111 672112 672121 672122 672131 672132 672141 672142 672200 672300 673111 673112 673121 673122 673131 673132 673141 673142 673211 673212 (C) SAP AG Name Order settlement: Sales & Distribution Settlement revenues Cost of sales: Direct costs WIP Creation .

Cost Element 673221 673300 674101 674103 674201 674202 674203 675100 675200 675300 675400 675500 690000 691000 692000 693000 694000 Name Value adjustment: Reserves for imminent loss Revenue surplus POC profit increase POC profit decrease POC loss creation POC loss realization POC loss cancellation Calculated revenue Calculated costs Valuated actual costs Valuated actual costs: Commissions Revenues Assessment of PA: Administration Assessment of PA: Sales & Distribution Assessment of PA: Marketing Assessment of PA: Sales Assessment of PA: Production (C) SAP AG AC412 9-12 .

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