Costing run and activity allocation

hi,
as there is a costing run (routing) to get the cost, may i know why still need to do direct or indirect activity allocation ; actual assessment ; actual distribution?
thanks
rgds

hi,
Costing run and activity allocation are two different processes.....
the former calculates the cost of a product
whereas the later distirbutes the cost among various heads as you want to

Similar Messages

What is Cost Center and Activity type

Can any one make me understand Conseptually, what is Cost Center and Activity Type

<b>Cost Center:</b>A cost centers is an organizational unit within a controlling area that represents a clearly delimited area of responsibility where costs are monitored against a budget.
Cost centers represent areas of responsibility (management areas) that generate and influence costs.
Cost centers are the locations at which the costs are incurred
<b>Activity types</b> describe activities produced by a cost center. They are measured in units of time or quantity. Activity quantities are valuated using a price.
For example: the maintenance department provides maintenance service at a labor hourly rate of SAR 2000 or USD 1000.
When the activities produced by a cost center are used by other cost centers, orders or projects, this means that the resources of the sending cost center are being used by the receiver objects.
By recording the planned and actual quantities consumed, you reallocate cost incurred on the sender into the receivers.
Activity Types can be grouped to facilitate reporting and cost allocation.
Hope it clears your basic doubt on Cost center and Activity type
Assign points if helpful.
Regards,
NareN.

PM Order Confirmation using Personnel's Cost Center and Activity Type

Hi All,
Is it possible to have PM Order confirmation (IW41) using Cost Center and Activity type from Personnel instead of default from Work Center? If it is, can it be done with some configuration or user exit? Please advise. Thank you.
Dai

Hi friend,
Order confirmation will be done for order operations.While doing confirmation we post the actual work done by the repective work center and respective activity type assigned to the same workcenter.
But these activity types are assigned to cost center for cost calculation.confirming the respective operation in maintenance order through workcenters gives the report of planned work and actual work done by the respective workcenter.
We cannot confirm the operation using costcenter and activity type directly through transaction IW41.
If you want to develop new confirmation screen and making confirmation of the respective order operation with only costcenter and activity type fields, you can do it .
Regards,
Pardhreddyc
Edited by: Pardhreddyc on May 17, 2011 12:45 PM

Blocking of Cost centre and activity type

Dear all,
Please tell me how to block cost centres and activity types which will no longer be used
best rgds,
Manoj

Hi,
There are two ways .
If you wish to use the cost center number for any other cost center , then you need to delete the cost center by KS04 & you need to mention the future period for which the same should deleted, normally, starting would be 1st day of next year to 31.12.9999
Keep in mind, cost center can only be deleted , if no data (Actual/Plan/reversal) is posted in it. You may do it , before starting next year's budget processing.
If you wish to just block the same , lock Actual primary/Secondary & Plan primary/Secondary in the control tab.
Regards,
Deepak Kolwankar

IW41 using HR data (cost centre and activity type)

Hi all,
Does anyone know the steps required to make IW41 determine the Cost Centre and Activity Type from the HR master?
We can change the Activity Type by user-exit CONFPM04, but not the Cost Centre.
Also posted [here|http://www.sapfans.com/forums/viewtopic.php?f=7&t=329923].
PeteA

Hi Pete,
Which cost center field are you using? SKOSTL (sender cost center) should be changeable in export structure AFRUD_EXP. It is this field that is written to the AFRU table (not KOSTL). I did a quick check through debug and it looks possible to set a value in the exit that gets written to AFRU-SKOSTL.
-Paul

Difference Btw Secondary cost allocation and activity allocation

Hi All
Can anyone let me understand what is the difference between Secondary cost allocation, activity allocation and direct cost allocation? I will be thank full if some one elaborate it with practical example.
Thanks

cbairi wrote:
Hi,
Can someone explain what is the difference between cost allocation and accounting flexfields.
Cost Allocation Flexfield is used in Payroll and Account flexfields are used in Financials. Basic difference is that you may want to charge to the same GL number even though the cost is coming from two different cost centers. Like say Overtime and Regular Hours Costs.
But it is always recommended that you use the same value sets for the common segments
For instance let us say an employee A is assigned to a payroll P and the employee has a default code comibination(i.e the accounting flexfield) information. Now all the costs incurred on this employee will go to the accounts defined in the accounting flexfield. It will not automatically go to the accounting flexfields but you have to map cost allocation flex with GL Flex and then run the transfer process.
let us know if it explained your doubts or not.

Costing run and premilinary cost estimate

Dear All,
Is it possible to run cost estimate and premilinary cost estimate for a product cost collector back dated. I mean for 01.03.2007. I know it is not possible. But anyother way out.
ranga

Hi Rangarajan
I think it is possible in future date and not backwards.
Thanks
Ashok
Assign points for useful answer

Difference between normal Costing run and Costing run in Material Ledger

Hi everybody,
I have a question i wanted to know why we implement Material Ledger .
If material ledger is for settling variances on material then that is also possible without material ledger
Please clear the doubt what is different in ML as compared to normal costing run
thanks in advance
Regards
Deepa

Costing run is to calculate the std cost estimate of materials and Material Ledger costing run is to calculate Actual cost of production of materials.

Cost center and activity type

Hi,
how can I link a cost center to an activity type ?
Regards

Hi..
You can defined a activity type to a cost centre category not a particular cost centre.
Suppose you have one activity 99xxxx you can defined it to cost centres cat "P" for prod
you can defined it in KL01 activity master creation.
If you want to assign one specific activity to be used for a particular cost centre then creat the cost centre under spl cat and creat master data for activity type for that cat.
kkumar
Edited by: kkbdsp on Mar 29, 2011 10:03 AM

Link b/w cost center and activity of a WBS

Hi,,
Can anyone let me know how work center and activities of a WBS are linked?
Please let me know ASAP...
Regards,
Balu

I got to know...
Take object id from AFVC for the activities and give it to CRHD to get the cost center

Internal Activity Allocation in Training And Event Management

Hi,
I am facing a problem while internal activity allocation of attendees in Training and Event Management. When i try to run "Internal Activity allocation for Attendees" i get an error message as " Reference document 1005 could not be found".
I have done all the configuration but even then i am unable to understand the reason for this error.
Plz help
Regards
TS

Hi,
I have resolved the above error. it was due to master data maintainence.
But now while posting i am getting an error that " Activity type XYZ can not be allocated to 2008"
Can someone help with this?
Regards
TS

Actual activity allocation / revaluation

Hi All,
My company is using SAP ISH (healthcare) in order to book Services to patient cases. We have linked the Services to some activity types which are generated by the Performing Unit in ISH. The Performing unit is linked to a cost centre in CO where the planned Activity rate has been set up (KP26). The patient case is linked 1:1 with an internal order in CO which receives the activity posting.
My company would like to ensure that all of the costs relevant to these activities are allocated out of the cost centre on to the receiving internal orders at month end. I have not worked in CO for a few years but I believe that this will involve a couple of steps in the month end process.
1 Re-calculate the actual activity prices
2 Revalue the actual postings
Each cost centre generates 2 or more activities which need to be valued. Example below
Performing unit THEATRE1 - Operating theatre, performs operations on 2 patient cases
CASE1 - Knee replacement
     Activity type - Consumables = 100 units @ £2ea = £200
                          Drugs = 10 units @ £30ea = £300
CASE2 - Hip Replacement
     Activity type - Consumables = 200 units @ £2ea = £400
                          Drugs = 50 units @ £30ea = £1500
Total credit to the THEATRE1 cost centre
Consumables - £600
Drugs - £1800
At month end the actual costs posted to the cost centre are as follows
Consumables - £800
Drugs - £2000
In order to credit the full amount to the Internal orders from the cost centre the prices must be recalculated and the activity allocation transactions need to be revalued.
Can you please confirm the steps to configure the month end price calculation (specifically around the splitting rule on the cost centre to determine which costs belong to which activity type), and steps to process the revaluation of the transactions?
Many thanks
Phil

Hi Philip,
When u work with cost center independent planning system can't underunderstand which GL account and cost center should plan with respective activity. For that reason we create splitting structures.
Cost center splitting is used in Cost Center Independent Planning where in KP06 you have cost center and cost element only. In this screen, you will not find Activity.
So, to give a relationship between Cost center, cost element, and activity, we will do splitting structure in OKES, and assign it to cost center in OKEW.
When you do KSS2, it will split the costs based on the splitting structure between activities and cost centers.
In this case, you have to maintain qty values in KP26 and later do KP06.
E.g.: we have 3 cost elements:
Salary - 100000
Depreciation - 200000
Electricity - 100000
Total = 400000
Activities:
Labour - 500 hrs
Machine - 1000 hrs
Total = 1500 hrs.
Here, when u calculate per hour rate system wi'll consider total amount / total activity hours.
= 400000/1500 = 226 INR/per hour
Here, if you want to consider salary amount only with Labour hours and deprecation and electricity for machine hours.
For this we will create splitting structure to provide link between cost elements and activity.
In the alove example salaries Wilkinson be linked to labour activity abduction dep and electricity will be linked to .machine hours.
When you run KSPI it will split the cost between respective cost elements and activities. Here, for salary per hour cost would be 100000/500 = 200 per hour.
Also machine per hour rate would be 300000/1000 hours = 300 per hour.
Same will happen in the case of KSII. I.e. actual cost/ activity hours Between respective cost elements and activity.
Hope you understand the basic concept of splitting structure.
BR, Srinivas Salpala

Problem in indirect activity allocation to CO-PA (transaction KEG3)

Hi experts,
I am in process of testing indirect activity allocation (KEG3) to CO-PA.
Sender is cost center and activity.
Receiver - a set of characters like Co Code, Product and so.
Sender rule is Posted quantities.
Question - how is this sender quantity picked by system ...I mean the combination of cost center and activity....where to set it so that system picks the data.
I tried through confirmation to a prod order but that did not help as - in indirect activity allocation we use activities of category 2 and 3 which are not used in confirmation of prod order
Thanks,
SKD

Hi SKD ,
Can you please elaborate what logic is used for indirect activity allocation to COPA ..
Why are you transferring activities to COPA directly .. not to cost centers...whats the business logic .. and also let us know the parameters used in Indirect Activity Allocation cycle.. to answer your queries further
Regards
Sarada

Costing run in PP

Dear all,
I am new to costing run,by using previous forum from the expert of kumar and rupesh i have studied the costing run process
From my understanding
1) For FG/SFG materials with quantity structure to be maintained in material master.
2) Relevant BOM and routing should be maintained for FG/SFGmaterials.
3) In work center proper cost center and activity type to be maintained
4 )what are the activity type is maintaining in work center for that price to be determined in KP26 for valid time period.
5) By using CK11N running the standard cost estimate and save
6)By using ck24 marking and release the price of the material.
7)Now checking in material master costing view 2 planned prices values has updated.
In above points kindly please correct me if i am wrong.
Regarding doubts
For example;1)I am maintaining fixed prices as 102 in material master,what will be in COGM & COGS cost value?(if cost lot size 1 & 100)
2)What will the price value in costing 2 view once after marking & releasing the price in ck24?
3)I have mainatined labour price in kp26 but tha cost values its coming as zero?
Kindly please let me clarify on this
Regards
Rajasekaran

Dear Muralidhar,
The flow path for Costing Run is
SAP Menu
- Production
- Product Cost Planning
- Material costing
- Costing Run - CK40N
Or else
SAP Menu
- Production
- Product Cost Planning
- Material costing
- Cost Estimate with Quantity Structure
- CK11N - Create.
I hope your question is answered.
If satisfied rewards suitable points and close the thread as asnwered.
Regards
Mangalraj.S

About Direct activity allocations

When i m going for direct activety allocation in T.code KB21n,In this screen there is sender cost center ,activty type and reciving order,my sending cost center is 30100 and activites type is J00,and rec order is Consulting company A.
When i feed this data in kb21n and i save it but there is one error occured ,the error is :-
A master record for 30200/J00 exists only in 2008
Message no. KL002
Diagnosis
You want to use cost center 30200 together with activity type J00. For this combination, however, only one master data record was created in fiscal year 2008. The master record is defined in CCA during activity type planning.
Procedure
1. Create the master data record.
Activity type planning
2. Or, check your entries.
Plz guide me ITs urgent
Regards,
Pramod Kulkarni

Hi,
Check your Cost Center and Activity type master data validity (like From Period & TO Period and Fiscal Year) and KP26 planning values for Cost Center and Activity type combination values for particular period and year.
If this helps you,please assign points.
Thanks,
Rau

Costing run and activity allocation

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