Set up cost

Hi experts,
In a manufacturing organization where there is some activity for set up cost.
If we create an activity type "Set up" how we can practically segregate costs only related to setup?/ ( there may be both labour and consumables/spares cost for set up)
Or is it only possible with Activity Based Costing??
Please comment on this.
Rgds,
Ramesan

HI,
Good question.
There is a concept called Activity dependent planning and Activity independent planing.
In your case you can go head with activity dependent planning and according plan your labour and consumable cost on cost center with Activity type combination. Hence when you run KSPI system will accordingly calculate cost of KP26.
As you cannot post actual cost in relation to the activity types, you can use Activity splitting in this scenario to distribute common cost incurred on more than one activity types on the basis of Actual quantity and you have to splitting as a month end activity and then do KSII execution to get cost in KBK6. System by default use Equivalence no to distribute the cost.
Hope this helps.
Thank & Regards,
Ravi Kumar

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