Revaluation of activity prices.

Did anybody tell me about what it mean by revaluation of activity prices??
Is revaluation is necessory at the period end??
If we want dont want revaluation then what should be do???

Hi
When KSII is run system calculates actual activity prices for the period. This is done at the month end after cost center accounting is completed, all repostings and corrections are done in cost centers and after activity quantities recorded thru production orders are evaluated and corrected
During the month activity cost on the production order is calculated depending on the activity valuation strategy considered for PP actual production order. After Price calculation is done, as a month end process Revaluation of orders is also done. Systems posts addtional entries for the change in activity costs with old price and new prices.
Hope the above clarifies - Pls assign points as a way to say thanks

Similar Messages

Revaluation of activity prices in CO

Did anybody tell me about what it mean by revaluation of activity prices??
Is revaluation is necessory at the period end??
If we want dont want revaluation then what should be do???

Hi ranjeet,
The activity prices for each activity should be regularly updated by costing person so that the material valuation can be corrected over the changing period.
Due to variances in raw material's price it may be the case that one raw material may have diff. price range in different period.So for correct valuation of material prices at each period end, it should be changed as per the costing dept's need.
If you dont want to maintain this, you have to go for the Standard price for the material other than Variable price.
Reward if it hepls.
Regards,
Sunny

How to calculate actual activity price using cost center balance

I have a problem,the case is that: i have two pro.order. orderA settlement to cost center M; orderB is a standard pro.ord,and the work center of orderB link to cost center M. when i calculate the actual activity revaluation.the activity price update the PRO.ordA and B,and the cost center is zero.
when i settlement the order A,the cost center M is not balance,so i must calculate the actual activity revaluation again.
now,i want to calculate the actual activity revaluation from the cost center's balance,not the Dredit balance.so how can i calculate the actual activity revaluation

did you also assigned the cost centre to splitting structure?
what is not working? the cost are equally distributed on both activities?

Accounting for variation of activity/price

We use transaction KP26 to change the activitys prices.
Then we transfer the activity cost in accounting with CAT7.
If we change the prices of past months, is there a transaction that generate an accounting document for the cost difference due to the price variation?
Regards.

Hi
There is an activity called revaluation of activity prices, you need to run this every month end so that you get actuals price and not planned price. However you need have the actual price calculation run before this using KSII transaction.
Use transaction CJN1 to revalaute project, KON1 to revaluate orders.
ANAND

Activity Costs Revaluation Using Actual Price

Hi,
Since we can revaluate the activity costs at actual price in the product costing module itself using t.code MFN1, why SAP has provided another option to revaluate acticvity consumption at actual price in the material ledger multi level price determination?
What is the difference between the both? If i had used MFN1, do i still have to use the revaluation of activity costs provided in the material ledger?

Hi,
However don't you think if the production order activity cost has been revaluated at actuals in the production order then during settlement it will carry the activity actual costs which will be shown in material ledger receipts category with the same actuals value for the activity costs.
So why should i be revaluating the activity costs again with actual activity price in material ledger once again? It sounds like a duplicate work to me under this scenario....

Revaluation of Activity type is not getting updated in Production Order

Hi,
I have run KSII , for actual activity price calculation. After this , the revalution of production orders was done.
But I am not finding any entry in Production order with a value of variance between Actual Price and Plan Price of the Activity type.
It sould come in the production order.
What can be the reason?
In OKEQ, for the Version '0' and the fiscal year, Revaluation has the entry ' 1.Own Business Transaction'. I hope this is correct.
But still the revalaution line item is not showing in Production Order.
Please help.
regards
Kamlesh

Hi Paolo,
Yes, MFN1 ran perfectly and I am also able to see the details in the screen.
My concern is, this revaluation should also have affect on Production order, thats what not happening.
Or let me know where can I see the affect of revaluation on Production orders.
regards
Kami

Cost Center Report : Revaluation at actual prices - credit but positive sign

Hi Experts,
Great day!
I just want to know the cause of the following unsual behavior of the system. The credit part of the cost center report is blank/zero and when you double-click the actual line items, it shows that the revaluation at actual prices are positive sign. By clicking an item further, the report will direct me to the CO document to investigate what happened. I found out that the sender - Activity revaluates the price for the receiver - Production Order.
I looked at the details of the sender - Activity and I found out that the debit/credit indicator is "C" but the sign is positive.
Your immediate help will be rewarded.
Thank you!
Here's the cost center report:
I am expecting the credit part to have a value right after I executed the "Actual Cost Splitting" at T-code: KSS2
Here's the unsual behavior:
Dr/Cr indicator is "C' but the value at Controlling Area Currency is in a positive sign.
Again, thank you!

Hi Dryan
Revaluations are posted to CC after you do CON2 and not KSS2
1. Did you do CON2 and revaluate the Prod orders with actual activity price?
2. Ensure that revaluation is allowed in Plan Version 0 for FY 2014
3. Also, check your activity price calculated in KSII... Revalaution is a result of the actual activity Price (x) Activity Hrs confirmed in Prod order
4. Check the hrs confirmed in the Production order.. They should be +ve as well
Br. Ajay M

Activity prices maintained manually..Is KSII/MFN1 possible?

Hi Experts,
We have this scenario:
1. Activity prices are entered manually in KP26.
2. All Costs are maintained as Activity independent costs.
3. For Production Cost centers, some costs (primary costs) are Activity relevant and others not relevant at all for Activity.
4. No Splitting structure maintained so far.
Now, we are considering calculating Actual Activity prices through KSII and then MFN1 for revaluating Process orders.
I tried KSII in our test system, where I got the following error message # KP211. I even tried by maintaining the Actual Activity type category '01' and Actual price indicator '05' in AT master, but no luck.
Short Text
All activity prices are manually entered
Diagnosis
All activity prices in controlling area , fiscal year , and version were determined and set as manually entered prices.
In actual price calculation, all plan activity prices, meaning those calculated automatically (activity price indicator 1 and 2) and those set manually (activity price indicator 3), are treated as if they have been set manually.
System Response
The SAP System cannot calculate activity prices automatically.
Processing is cancelled.
Procedure
Check your activity type planning. To calculate the activity price automatically, you must set the activity price indicator accordingly.
Proceed
Questions:
1.Given our case, is it possible to do KSII/MFN1? If yes, what configuration and master setup is required?
2. What accounting/CO entry posted MFN1. Especially, want to know if value also posted to CO-PA?
Thanks much for your time.
SC

Hi SC, 
 
sorry for my delay. 
 
Yes, you can process KSII even if you maintained planned activity prices manually. For this, the Activity type master should be activity price indicator "5" for Actual, hoever it's defalt value for planning (KP26). 
Could you check activity planning value in your period as follows; 
 
1. Go to transaction KP26 
2. Selection screen; 
 Set your version and year/period and also cost center/activity types in problem. 
 Push Next Layout button (Ctrl + F8) and set layout 1-204 (named "Control indicators"). 
3. Push "Overview screen" (F5) 
 
You can see plan price indicator and also ACTUAL price indicator, so you have to check if actual price indicator is not "7" or "Blank". If not, please set it with value "5" or "6". 
Hope you can understand what I wrote above, but if you have any queries, please feel free to ask me. 
 
Additonaly about your question regarding "activity independent" cost planning 
In F1 help document for field "Equivalence Numbers", there're useful description how activity-independent costs allocates activity type and activity prices calculates. If you do not use cost split or activity-depend planning, you can process activity price calculation by "Equivalence Numbers". it's easy-way to allocate cost to each activity type. you can see this field also in KP26 with layout 1-201 (sample) 
the following passage from field "Equivalence Numbers" F1 document. 
 
- Equivalence Numbers 
Weighting factor for distribution of activity-independent plan costs of a cost center onto the available activity types. 
- Use 
This field group serves to weight the activity types created in a cost center. After weighting, the activity-independent plan costs of a cost center are distributed onto the available activity types. 
-Procedure 
If you want to change or create equivalence numbers in planning, this field must be defined in the planning layout. If this field is not defined, any existing equivalence numbers will be displayed, but they cannot be changed. 
Examples 
You have planned the following activity types for cost center 4420: 
Activ. type Plan quantity Equiv. nr. 
 
FST 400 hrs 3 
REP 50 hrs 1 
RST 20 hrs 1 
 
 Total: 5 
This cost center has planned activity-independent costs worth $20,000 . These costs are distributed according to activity price calculation onto the iteratively calculated activity prices (cost rates) of the activity types: 
ATyp Fixed costs Fixed portion of activ. price 
 
FST 20,000 X 3/5 = 12,000 $12,000 / 400 hrs = 30 $/hr 
REP 20,000 X 1/5 = 4,000 $4,000 / 50 hrs = 80 $/hr 
RST 20,000 X 1/5 = 4,000 $4,000 / 20 hrs = 200 $/hr 
Edited by: Takashi Kotani on Feb 9, 2010 7:55 PM

Revaluation of actual prices

Dear experts,
Generally we do price calculation in KSII, that is standard price calculation. After planning in kp06 and kp26 we do this calculation. For actual confirmations also ( in CO11N ), we use the same price ( that means standard price whatever we calculated in KSPI ). But i have some doubt regarding actual price calculation. When we do actual price calculation in KSII? when we do actual price revaluation in CON2? what is the use of doing this one? At what point of time we do revaluation? immediately after doing confirmations? Please help me.
Regards
Jay

Hi Jay Jay,
Pls go through the following example to understand Plan Activity Price and Actual Activity Price:
For Cost Center A, you do Cost Element Planning in KP06 (Ex. Rs.1,00,000). In KP26, you do the planned Activity Quantity (100 Hrs) - you will not update any price in KP26 screen usually . Now, to calculate the Planned Activity Price, you use the transaction code KSPI. The gives the result of Planned Activity Price of Rs.1000 per Hr.
Now, when you confirm the activities in Production Order in CO11n, the activity cost on the Production Order is updated with the Planned Price of Rs.1000. So, by the end of the period, if total actual hrs confirmed is 60 Hrs. ie., total cost loaded onto Production Orders is Rs.60,000.
Now, think of the actual cost that is booked to the Cost Center A (either through FI postings or distribution / assessment from other cost centers). If the actual cost that was posted to that cost center is only Rs.84,000. (Where as Planned Cost was Rs.1,00,000).
Now, when you run KSII transaction code for actual activity price calculation, the system will calculate the actual activity price by 84,000 / 60 Hrs =1,333.33.
This is the way how the system clearly shows and takes care of Under-Absorption / Over-Absorption in cost centers.
Then you run the transaction code MFN1 / CON2 to revaluate your Production Orders with the Actual Price of Activity.
After alll these steps only, you need to settle the Production Orders. If you settle Production Orders before revaluating with Actual Activity Price, then again there will be some loaded on to Production Orders, so, you have to do the settlement again.
Revert back for further explanation...
Srikanth Munnaluri

Revaluation of Actual Prices error- CON1

Dear Experts,
Im getting below error when I execute CON1 ( Rev of Actual Prices)
Prior to the error , I maintained following settings for activity type and planned Prices.
Kindly let me know what addl config and actual data to be maintained for calculating actual prices
Currently I maintained Activity prices
In KL01 (14xx) - I maintained Activity Unit - Min
                                   Cctr Categories - "1" Production
                                   AType Category - "1"
                                   Allocation Co Element - 95xxxx ( category -43)
In KP26
Cost Center - 111xxx
Activity Type - 14xx
Dis "2"
Unit "MIN"
Planned Variable costs "100" Shillings
Error
Revaluation at actual prices not possible in version 0, fiscal year 2011
Message no. KI760
Diagnosis
A revaluation for actual prices is not possible since this function is not available in version 0 in fiscal year 2011.
Procedure
Maintain the corresponding indicator in your version.
Advance Thanks
Sanjai

Dear Experts,
Can someone explain me the procedure of CON1,
For Ex: Actual Activity Price of Direct Labour is say $12 per hour and the planned activity prices is say $10 per hour.
Query
1. Where these actual activity price of $12 per diriect labour hour is entered ? can the system calculate automatic actual prices? if yes what is the procedure
2. When CON1 is executed ,what is the entry that is posted to Product cost collector and the cost center .
Kindly let me have your inputs
Thanks
Sanjai

Activate actual activity price

Dear All,
when I execute transaction CON2.the system has erreor system information as follows.
"Revaluation at actual prices not possible in version 0, fiscal year 2007"
so my question is "If activate actual activity price,how to configure version 0?"
thanks!

Hi Fanny,
For configuartion, please refer the following path.
Project System-Costs-Create CO versions
Here click on version 0 and configure.
Regards
Tushar
P.S. Reward points for useful answers.

Costs in Cost Center are not zero after Revaluation at Actual Prices

I executed:
1. KSS2 - Splitting (I use a Cost Center ABC and all Cost Elements in the configuration)
2. KSII - Price Calculation
3. CON2 - Collective Processing
4. I see the report KSB1 of the Cost Center ABC, but Costs are not zero after revaluation. For example
Cost Element 61:                        $   1000
Cost Element 62:                        $   2000
Activity Allocation 98:               $ -2800
Revaluation at actual price 98: $ -100
TOTAL:                                      $ 100
Total must be $ 0.00
We work with thousands of product orders in a month. Is it possible that the problem was for rounding?
Thanks in advance for your help.
José Luis

Hi Ajay,
I checked OKEQ configuration, it's equal that you mentioned.
I have seen that Revaluation registers are using other Exchange Rate. In OB08 Exchange Rate P is 2.80 ( 1 USD --> 2.80 PEN)
How ever those revaluation registers are using ERate of 2.14 (1 USD --> 2.14 PEN)
Why revaluation registers use other Exchange Rate? Is this the problem that Cost Center is not zero?
Thanks in advance for your help.
José Luis

Configuration needed for setting revaluation of activity type rates

Hi,
I'm not sure about the obligatory settings I should make in order to configure revaluation of activity type rates.
I know that I have to set sth in Plan version and that I have to fill the Activity Type master data in a different way than if I used them without revaluation.
Can you tell me about the settings I should make?
Thanks and regards,
Karol

Hi Karol
Yes u r right u need to first set in plan version and after that its the client's discipline on transaction entry that drives this requirement.
1) If the transaction data is not posted correctly then activity hours will be vague and distorts the price.
2) You can do manual activity posting but that does solve the purpose.
3) Also u can correct activity hours posted for all orders in the system during month end, this also is a huge activity depending on the number of orders
4) Now if u wish to do price calculation thru system u need to decide on two aspects
One - plan ur costs for both activity dependent and activity independent
If your cost center has more than one activity being performed u need to do either cost splitting or enter equivalence numbers while doing activity planning
5) If u wish to hve prices calcualted by system, then during month end u need to run actual cost splitting and then do actual price calculation
6) Then u need to revaluate all your orders with actual activity prices
Hope the above clarifies - do assign points as a way to say thanks

Higher activity price in cumulative run in Material Ledger

Hello,
Scenario:
The company is using material ledger and doing periodic run. After the periodic run, company post financial transaction and run cumulative run to take impact of financial transactions.
During cumulative run, system is using actual price of the last month and revaluation the cumulative qty with this price. Due to no catual activity, the prices are very high. Due to this, system is revaluating cumulative quantities of all months with very high price (of last month).
Please suggest to resolve this issue?
Neeraj Rawat

Hi Srinu,
Do you mean that, just after changing the KP26 values, u are expecting the same to reflect in your cost component structure of materials? KP26 is only to plan the price of an activity type in a cost center. This will be applicable for the future period. ie when operations are confirmed in production orders in future, this costs will be absorbed to the production order.
Use S_ALR_87013611 or similar reports for actual activity prices(debits) and actual activity quantities. Former divided by later will give you the actual per unit activity price for the last period.( in case of 1 to 1 relationship between cost center and activity).
Best Regards
Vimal

Revaluation of Activity CON2

Hello Team,
I have a small doubt about the Revaluation of Activity. I have red in one of the thread "Before the final confirmation, Activity types are re valuated"
Is this Revaluation of the activity is belongs to Moth end activity..?
If it is a month end activity, how how come before the final confirmation activity types are re-valuated.
Regards
Raj

Hi Raj,
Activity price calculation is a period end activity. As we dont know the actual activity price in the middle of the month, confirmation of activities will pick up plan activity rate. (assume 2 Hrs * 10$ - plan activity price = 20$ will be updated while confirming the activities)
By month end, all the cost related to the activity will be posted and when you calculate "Actual activity price calculation through KSII" you will get the actual activity price.
To apply the calculated actual activity price, we need to run the revaluation of order through KON2/MFN1 as part of period end activity.
BR, Srinivas Salpala

Revaluation of activity prices.

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