Activity base costing
dear sir,
i want to know about activity based costing. how to calculate cost estimate for activity ?
which setting should be made in the system.
points will be rewarded.
regards
dhananjay
Hi
for Activity based costing
1. Master data are
>>Material master with Accounting and costing views and proper valuation class and price assignment (S or V)
>> Valid BOM
>> Workcenter with valid costcenter, activity and formaula assignment ( CO activity - Primary cost element, secondary cost element, activity definition, cost center creation and price planning (KP26)
>> valid Routing with Standard values
if all the master data are maintained then you can create the standard cost estimate using a appropriate costing variant
( Example PPC1)
once successfully created you can review the quantity structure for cost of Goods sold, overheads, activity costs etc.
then it will be released for price update in material master.
the release of cost estimate wil be a periodic process may be monthly or yearly
Hope this helps
BR
SK
Similar Messages
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Hi gurus
My client requirement is activity based costing implementation
i dont have how do i custamization for abc.
can u pls explain the custamization steps for activity based cosing
Regards
SIVAJIStep 1 is to attend a set of SAP ABC training courses.
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Business process in activity base costing
Hi All,
We have implemented ABC to compute cost for sales order.
We defined business process & templates to compute the cost.
There is one scenario where I need expert advice.
For one of the cost element order to cash have 2 rates one is for a order & another is for a line item in that order.For bith rate we defined separate business process & accordingly mainatined rate in CP26.
In template selected function CalculationRowResult to calculate cost by considering an order as a one number. but we have one case where we want to calculate cost for each line item of sales order. EG if one order has 3 line items & rate is $1 then cost is
3*1=3.
Could anyone please tell me which function to use to calculate number of line items from an order? or there is any other standard method to calculate cost?
Thanks
AnaghaHi,
Greetings,
I think, you have to understand the requirement and adaptabilty of ABC as well Activity price.
Each sale order will have atleast one Order item and Header.
Generally,header covers for all items and item specifically cover Sale order Item.
As I know in sale Order costing means Sale Order item costing.when other cost objects are linked with sale Order Item,
Settlement happens to SO item.
I request you, for my understanding,pl.confirm your intention to apply cost at header level and item level !
Please provide more inputs on contemplated scenario for better understanding of your problem.
Thanks - GS Rao -
I purchased a book called Activity-based costing for $3.99. I tried to open the file but it said my computer does not have IOS. I have a smartphone and I am unable to view the book. I am requesting since I am unable to use the book activity-base costing, a refund.
KevinI don't know what you are saying. How do I get my money refunded.
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Assigning markups on base cost?
Hello -
I am doing a schedule and I am needing to show what the base price is and then two markups on that price. Is there a good way to do this in P6? I have thought about assigning three resources per activity and cost loading it like that, but wasn't sure if someone may have a better insight.
Thank you!assigning resources to activities with different price/units is the way to go especially if resources are needed (or at least useful) for other functionalities than project activity costing. the downside would be that there is no easy way to import resource price info (e.g. from MS Excel) and/ or calculate one price/unit from base price/unit using markups.
if cost loading your activities is all you need, I would use expenses. the easiest way would be to create one activity with one (or several) expense item(s) attached to it. copy that to the desired number of activities (Ctrl+A, Ctrl+C,Ctrl+V). set expense price/unit (P/U) for each activity to desired base price. Budgeted Expense Cost (BC) is calculated as Budgeted Expense Units (BU) * Expense Price/Unit (P/U)
using BU of 1 you get the base cost. using BU of less/ more than 1 you apply discounts/ markups. you can use fill down in expense window and/or globalchanges to assign custom values or recalculate values for all parameters.
you cannot directly import expense P/U from MS Excel, but you can import BU.
using a P/U of 1 you get base cost (BC = BU*P/U)
you can transfer BU to P/U and reset BU to 1, using a global change such as this:
Then Parameter Is Parameter/Value Operator Parameter/Value
Price / Unit = Budgeted Units
And Budgeted Units = 1.000
you can increase or decrease with/by x either your P/U or your BU, using a global change such as this:
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Cost sheet without activity(Product costing)
Hi,
In our company code all earlier created cost sheets have activities, which are assigned in cost element group. And in base of the cost sheet, this cost element group has been assigned.
Now in the new process, for which the cost sheet to be prepared, there are only overheads and no activities.
Is it necessary to create cost element group?
Is it necessary to assign the cost element group in Base?
Any activity to be created by assigning zero value in KP26 for routing purpose?
Please suggest.
Prakash.Hi,
Yes. You need to assign the cost element group where the base cost shall be available to calculate the surcharge on the basis of overhead percentages.
Activities shall not be found in Costing sheet. It is assigned in work center and KP26, you enter the planned prices. That is separate. In costing sheet you need to define overhead percentages.
Trust this helps much!
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Can anyone help me to understand what is base cost and what is variable cost. And also from where can I find these both.
Thanks
VaniMayby you mean fixed and variable costs?
Variable costs are expenses that change in proportion to the activity of a business.
For example, a manufacturing firm pays for raw materials. When activity is decreased, less raw material is used, and so the spending for raw materials falls. When activity is increased, more raw material is used and spending therefore rises.
Fixed costs are business expenses that are not dependent on the level of production or sales.
For example, a retailer must pay rent and utility bills irrespective of sales. -
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Function modules to get wbs level budgets and activity level cost
hai gurus can any one tell me the function modules or any other bapis to get the wbs level budgets and activity level costs
thanx in advance
afzalok
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Activity types cost Elements not reflecting in Cost Centre Report.
Hello SAP Gurus,,
1. Here we are facing one issue in Zreport. total is not matching, compare with KSB1.
Values are more in Zreport, in other words activity type cost elements are not reflecting in Zreport, but it reflecting in KSB1.
example: flow from PM module.
Actually we had used logic based on the Cost Centres, in that cost centre by taking Object number and it passes to COEP table, then we are getting values as same as KSB1.
As per investigation i found that the object number is differ from COEP table and CSKS table.
Exapmple : 1410000 object number in CSKS table, 1410000EL in COEP table, thats why in Zreport these values are not reflecting.Finally our requirment is , Zreport values should same as KSB1 vlaues.
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So please give me inputs or logic how to over come the above points.
Regards,
Raj.The OBJNR field structure is as follows :-
AABBBBCCCCCCCCCCDDDDDD
AA = object type eg. KS (cost center)
BBBB = controlling area
CCCCCCCCCC = cost center
DDDDDD = activity type
Based on the structure, you will be able to filter the relevant cost center/activity types. You can also use other fields eg. cost element, partner object, source object, value type, etc. to get your desired figures as per KSB1. -
Hi Experts,
Can we issue the activity to a cost center.
In REM scenario , some activity happens in production when actual production is not taking place.
As i understand if i use, activity BF , then cost will go to the product. I want to issue the activity to cost center.
Is it possible
Regards
ShankarRIn REM the activity will be issued to the Cost Collector. Later you can settle this cost collector to some object.
What you mention can be solved using some activity posting between cost center (CO Consultant) -
Activity Independent Cost and fixed activity dependent cost
Hello
In cost centre planning, how an activity independent cost is different from a fixed activity dependent cost? Are not the treatment of the two is same. B/c both ara fixed in nature and do not vary with activity output?Hi
Activity Dependant cost is treated as Variable cost.... When you calculate act price, such costs are only divided by this act type
Activity Independant cost are only for Fixed Costs... These costs are split between all act types of a cost center during Actual Activity Price calculation
br, Ajay M -
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Hi,
can you please explain burden schedule,cost base,cost type ,burden cost code with example. how its taking part with oracle costing.Hi
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Activity Independent Costs -Splitting Equally
Dear All,
When I try to split the Activity Independent Costs among various activity types ,Independent costs are being splitted equally among the activity types,even though I have selected splitting method as 12 (i.e. Activity Quantity) while configuring the splitting structure.
Actually the system should have splitted the independent costs based on Activity qty instead of splitting the costs equally.
Please help me out as how get the splitting of costs based activity qty.
Regards
SuHi
Your splitting structure has 2 parts
1. Where in you define rule.. here you defined rule based on 012 (Qct Qty)
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3. I hope the fiscal year from which you assigned cost centers to splitting rule in OKEW is also in line
4. Also check if you defined your target cost version in case you are doing splitting based on actual cost (KSS2)
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Once you do this, activity indep costs split based on act qty only... (KSS2/KSS4)...
Regards
Ajay M -
I'm looking to create a base costing object (KKE1) automatically for use in Quotations. can anyone point me in the right dirdection for the right FMs ti use.
Thanks, MarkHi Mark,
Just a suggestion, try looking into the standard program SAPMK70B and see how SAP creates such objects. I have not worked on it so cannot thrust more light.
BR.
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