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ACTIVITY PRICE
CALCULATION

PRESENTED BY:
TARA HUSHBECK
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AGENDA

• Review High Level Steps for Calculating Planned Activity Prices

• Master Data Requirements
• Determining Calculation Method – Simple through Complex
• Calculating Planned Activity Prices
• Actual Activity Prices
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PLANNED ACTIVITY PRICE

CALCULATION STEPS
• Create & Validate Master Data
• Determine Calculation Method & Plan Spend
• Activity Dependent & Independent
• Plan Activity Quantity
• Determine Allocation Structure
• Execute Plan Price Calculation
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MASTER DATA

• Activity Types
• Routings
• Work Centers
• Material Master
• Cost Centers
• Secondary Cost Elements
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MASTER DATA - ACTIVITY TYPES

• Describe activities and allow assignment of costs

• Example:
• Labor
• Maintenance
• Depreciation
• Overhead

• T-Code: KL01
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MASTER DATA - ACTIVITY TYPES

• T-Code: KL01
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CALCULATION METHODS

How much detail do you require?

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CALCULATION METHODS

• Method can vary by Cost Center

• Overhead Cost Centers – No allocation or use Costing Sheet/Template (SIMPLE)
• Indirect and Direct Cost Center – Quality, Warehouse, Production (MEDIUM)
• Allocate by Costing Sheet or Template
• Allocate by Activity Quantity – Single Activity Type, Activity Independent
• Direct Cost Center - Quality, Warehouse, Production (DIFFICULT)
• Allocate by Activity Quantity – Multiple Activity Types, Activity Dependent
• Direct Cost Center - Quality, Warehouse, Production (COMPLEX)
• Allocate by Activity Quantity – Multiple Activity Types, Activity Dependent
• Plan by Cost Center, Cost Element, Activity Types, Fixed and Variable
• Plan Overhead Assessments – Splitting Structure to Assign Cost to Activity Type
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PLAN SPEND

How you plan spend will vary depending on the calculation method
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PLAN SPEND - COST CENTER PLANNING

• Planning method can be different by Cost Center

• All calculation methods require plan spend by Cost Center & Cost Element
• Medium, Difficult and Complex also require plan by activity type
• Complex option to do Fixed/Variable

T-Code: KP06
Reporting T-Code: KSBL
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PLAN SPEND - COST CENTER PLANNING

• In KP06, layouts available for each

“level” of planning

T-Code: KP06
Reporting T-Code: KSBL
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CUSTOMER EXAMPLE: PLAN

• “Native” Direct Cost

Planned as Activity
Dependent

• Cost Center Assessments

used for Indirect Costs
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SPLITTING STRUCTURE

• Configuration that assigns activity independent costs by cost element to activity type
• Assigned to a Cost Center – One structure per Cost Center
• Uses rules to split costs
• Activity Type, SKF, etc.
• 10 methods available
• Tip: Use Groups for ease of maintenance

• Run KSS4 (Plan) to split costs using splitting structure prior to KSPI (Plan)
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CUSTOMER EXAMPLE: SPLITTING

STRUCTURE

• Each Assignment Item

Represents a type of Cost
• “Native” - Labor, OH,
Depreciation
• “Assessed” – OH,
Depreciation

T-Code: OKES
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CUSTOMER EXAMPLE: SPLITTING

STRUCTURE

• Assignment 20 Drill In
• Plan cost posted to CE in
Group “Plan 2” –
Assigned to FOH based
on activity quantity
• Included in Plan Activity
Rate
CALCULATE PLANNED ACTIVITY PRICES
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CALCULATE PLANNED ACTIVITY

PRICES
• SAP Calculated (High Detail)
• Plan Cost
• Plan Overhead Assessments
• Use splitting structure to assign costs to activity type (Execute in KSS4)
• Execute
*Requires additional primary cost component structure
• Manually Enter Activity Prices (Low Detail)

T-Code: KP26 (Manual)

T-Code: KSPI (SAP Calculated)
CAN I COMPARE MY PLANNED RATE TO AN
ACTUAL RATE?
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ACTUAL ACTIVITY PRICE CALCULATION –

SAP ECC
• Actual Activity Price can be calculated during Period End Close
• Supports full absorption of costs
• Allows analysis of plan vs actual activity price variances
• Process:
• Review CC to ensure all expenses have been captured (S_ALR_87013611)
• Enter Actual Activity Quantities (CKMDUVREC)
• Compare Actual vs. Reported (S_ALR_87013611)
• Distribute Actual Activity Quantities (CKMDUVACT)
• Execute Actual Cost Center Assessments (KSU5)
• Calculate Actual Activity Price (KSII) **If using splitting structure, execute KSS2 prior to running KSII
• Review Actual vs. Plan (S_ALR_87013644)

Optional Step – Actual Activity Price can be calculated using reported quantities from monthly activity

• Option to revalue actual activity with actual prices

SPLITTING STRUCTURE – CUSTOMER
EXAMPLE
• Unplanned actual spend
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CUSTOMER EXAMPLE: SPLITTING

STRUCTURE

• Each Assignment Item

Represents a type of Cost
• “Native” - Labor, OH,
Depreciation
• “Assessed” – OH,
Depreciation

T-Code: OKES
SPLITTING STRUCTURE – CUSTOMER
EXAMPLE
• Assignment 10: Native CC
Salary and Fringe
• Actual cost posted to CE in
Group 10S – Assign to
activity types in group ZF1
based on activity quantity
• Included in the actual activity
rate
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CUSTOMER EXAMPLE: ACTIVITY PRICES

• KSS4 (Plan), KSS2

(Actual)
• KSPI (Plan), KSII (Actual)

• Report –
S_ALR_87013644
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S4HANA DIFFERENCES

• Not much difference in the process

• Design:
• GUI Transactions not all available
• Need to import data into ACDOCP table from “old” tables

• SAP Analytics Cloud (SAC) Design

• Main planning tool for and integrated with S/4HANA OP
• Product cost, profitability, P&L, Balance Sheet and Cash Flow planning
• No access to ERP transactions
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KEY TAKEAWAYS

• Ensuring the accuracy of master data is vital to calculating activity prices

• SAP has capability to calculate Activity Prices as simply or as complex as your
business requires
• Using this functionality, enables more detailed reporting downstream
• Actual Activity Rates can be calculated to analyze activity price variances &
understand gaps or inefficiencies
• ECC and S4HANA are similar in processing today but there is likely more to come in
the future from SAP
RESOURCES

• Product Cost Controlling with SAP Product Costing: SAP CO-PC (SAP Press) Written by John Jordan
• SAP S/4HANA Product Cost Planning Configuration and Master Data written by Tom King; Espresso Tutorials
• SAP Note 2270407 - S4TWL - Profit and Loss Planning, profit center planning, cost center planning,
order planning, and project planning
• SAP Note 2081400- SAP BPC Optimized for S/4 HANA Finance
• Practical Guide to SAP Cost Center Accounting, John Pringle, Espresso Tutorials ISBN 978-1975731199
• Controlling with SAP S/4HANA: Business User Guide, by Janet Salmon and Stefan Walz, SAP Press,
ISBN 978-1-4938-2098-4 (Section 5.3)
• SAP Controlling: Planning and Budgeting, by Janet Salmon, SAP Press, e-bite
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QUESTIONS?

TARA HUSHBECK – SAP FICO CONSULTANT, PRODUCT COST PLANNING

PHONE: (360) 635 – 1160
LINKEDIN: WWW.LINKEDIN.COM/IN/TARA-HUSHBECK-3B86B04B/
EMAIL: TARA.HUSHBECK@GMAIL.COM