Use of activity types and cost splitting

Hi All,
We would like to track activities for cost centers, but don't necessarily have the need for a sending cost center/object. I understand in a traditional manufacturing set-up, you have sending and receiving cost objects that incorporate the use of activities. Our business is a service that we provide, not a tangible product that we produce.
Here is the scenario. We have activities that a cost center performs. Cost center 1 will perform 2 types of "pick-up" activities, so this would require two activity types. Throughout the course of the month, the activity quantities would get posted to the cost center. So my first question is how can you post only quantities to a cost center--what is the t-code? We're not concerned with incorporating an activity price, we just want quantities.
Second, as primary costs get posted to the cost center in FI, we want to split the costs onto the activities. I have researched t-code KSS2 and can't seem to split the primary costs based on the activity quantities. It keeps refering to target costs, which I don't really want to have to worry about.
What we're trying to do is a makeshift ABC scenario. Since the use of true abc seems almost non-existent, there's not much info out there on it. Does anybody have any good docs on abc in SAP?
Thanks
Kory Squire

Hi,
1. I understood your case in this way .
Cost Center A performs 2 activities . The cost center collects cost by Fi posting through out the month.
Now you want the activity type should nt have price , only it should have quantities.
And now you want to allocate the cost of the cost center to other object by activity types.
If i am right..
then instead of activity types why not create SKF(statistical key figures) . At the month end by t.code Kb31n post the activity qts. for combination of cost center and SKFs.
Then as per your requirement run allocation cycle.
The kind of you are planning , in that case activity types to be converted as cost object ( it can be done in control area setting) and then you want to allocate.. seems to be little complicated..
Hope i understood and in turn i conveyed the message properly..
Assign points if found helpful
Regards
Prabhat

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Activity Type and Cost Element Assignment wrong

The cost element appearing in Transaction code KP26
( Activity type planning), should come through the master data of the activity type.
What I am observing in my system, that for the combination of the Cost center and Actvity type , in KP26 the same cost element is not appearing as per the master data of Activity type. And also the cost element filed is gray. It is happening for 2008 financial year only.
How to correct this problem?
Is there ant note to be applied.?
Kamlesh

This is normally a result of changing the CE while the Activity Type was active and in use (planned against and/or activity confirmed for some production orders).
One solution is to curtail the activity to the end of the period you are in and create a new one from the following period. Just beware that you may need to change the routings, splitting rules, etc. as well.
Cheers.

Activity Types and Cost Centres

Our PP is not yet live now.
While going through the system settings, it is found that many activities (approx. 15 for indirect expenses also) are planned in the Production Cost Centres.
However, these activities are not included in the master data of the Work Centre. Only one activity type is mentioned there for machining.
Then, what is the purpose of other activity types planned if they are not mentioned in the Work Centre ?
Is there any other way these activity costs will appear in the Cost report ?

Hi,
You are almost on the right line, activity quantities will be triggered in the cost center report based on the routing master and through the confirmation from the production orders.
For the creation of the work center - Activity Planning KP26 is required. Cost center/Activity
where we can plan the activity quantities.
Prior to that KP06 is required to plan the primary cost combination of (Cost Element/Cost center/Activity Type) where we can plan the cost.
Based on the above information we can calculate the plan price - KSPI
Based on the confirmation from the production orders activity quantities will be updated in the center report. cost will be updated with actual postings in the cost center.
So that you can calculate the actual activity price.
Please look into the blog for better understanding:
Expenses Analysis and Its splitting - Part 1
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Activity Type and Cost Relationship Configuration

Hi SAP Gurus,
In ERP, the recipe of Material GN2425A1H, the activity is ZDL - Labour. When the activity time is increased, the material cost does not change, e.g., if labour hour is changed from 1.52HR to 3.4HR, the cost remains unchanged. In case of other materials, if the time of activity ZDL is changed, then the material cost changes accordingly.
Please help me understand the configuration that needs to be checked for activity labour hours with cost associated.
Thanks.

Dear Samir,
I am not sure if such a relation ship exists between Material and Labor.
Normally, the costs are charged independently based on the valuation variant used for the Actual costs in the Process Order (defaulted from order type) ex:Material costs are picked as per the valuation indicator (V/S) from the Material Master when the goods issue is posted to the Process Order.
Labor costs are picked when confirmations are done from the Transaction KP26 (planned prices for activitites) as per the valuation variant.
Kind Regards
Umapathi G

Eliminating the use of Activity Types -- what are the impacts and risks?

Our primary FI stakeholder wants to eliminate the use of Activity Types in our ERP 6.0 system. He would prefer the use of cost elements and cost centers. I know that the elimination of using Activity Types will impact our planning processes plus our ability to segregate costs within a cost center. What else am I missing?

Hi,
I can't understand the idea of "eliminating the use of activity types"...
What about direct activity allocation (based on time confirmation using activity types)? Is there no need to do so? Don't you use production orders?
best regards, Christian
Edited by: Christian Ortner on Mar 29, 2010 8:19 PM

Activity Types and Allocation Cost Element

Hi
What are the impact of having same Allocation Cost Element for different Activity Types. Is there any where we use this condition. SAP allows to have same allocation Cost Elements to different Activity Types, but i did not understand where we can utilizes this feature.
Thanks
Sivaram

Hi Sivaram,
in WIP customizing OKG5 you can assign specific cost center/activitity type combinations to different line-IDs, even though the same cost element is used. By this you can e.g. differentiate the value flow of one cost element in 2: one for capitalization, the other for non-capitalization.
Personally I would not recommend to use this and stick to the rule "one activity type - one cost element" - makes it easier for IT and controlling departments.
Regards
Harald

Activity Type with cost elements

Hi,
I'm trying to find out whether it is possible to connect activity types with a group or range of cost elements, which should be allocated using activity allocation.
I don't want to allocate all costs gathered on Cost Center, but only a range of cost elements. Can I achieve that using direct activity allocation and if it's possible, how can I do it?
Best wishes,
Karol

Hi Karol,
It is possible to link the cost elements to the activity using the splitting structure in the SPRO of cost center accounting.
First the costs are debited to other cost centers using the plan activity type. At the end of the period when you calculate the actual price of the activity then based on the cost element range assigned to the activity in the splitting structure the actual cost of the cost elements are debited through the activity.
I hope it is clear now.
Regards,
Suraj

Activity type and CAT2

Hi friends,
my client have employee who had activity type for 2009 (ACS001) and we planned this activity type with cost center(2114200001) in kp26.
Belong 2010 year this person should not post in this activity type(ACS001), but other person with different cost centers can post in this activity type. So we not planning there cost center in kp26.
But the problem is when person create mistake and post in cat2 for this activity type(ACS001) some hours for 2010.
The system create only warn messages 'No activity prices exist for 2114200001/ACS001'.
When employee push enter the system accept record.
So i think that we have several decision:
1.With user rights to restrict activity type(ACS001).
2. Create new analysis period for ACS001. Now this period is from 01.2005 to 12.2999year.
and split in to periods 1 period 01.2005 - 12.2009 and 2 period from 01.2010 to 12.2999.
3.Create validation in HR
4.Change messages type BK - 057 from warn to error. Here i think that is impossible.
So how what type of decisions is better, and flexible?

HI,
2 possibilities:
1: OBA5 change message control, you can set this message to "ERROR" on SAP-user level.
2: If the combination of cost center 2114200001 and act. typa ACS001should not be used anymore in FY 2010 create a new validity interval for both masterdata and use the field "cost center category" in cost center master data / activity type master data to "unlink" cost center / act. type.
best regards, Christian

URGENT........ACTIVITY TYPE AND THEIR ASSIGNEMENT TO WORK CENTER!!!!!!!!!!!

Hi Friends,
I have A REAL URGENT REQUIREMENT as far as activity type and assignment to Work Center is concerned.
I work for a client who is a manufacturer of Paint equipment. I'm responsible for capturing the cost of an assembly activity of spray guns, which is the last step of routing. However, there are 4 processes/steps of routing which are outsourced to the subcontracting vendors. we recieve the facbricated, anodised guns which are assembled in our factory.
I need to get the cost of assembly, which I have created as an actvity type in KL01 and planned for the same using KP26. However the system is throwing up errors related to costing, and I'm not sure about the assignment areas in work center.
And above all I'm not sure of various fields in KP26 like capacity field and what do we assign.
can anybody help me with the series of steps for me to be able to pick up the cost. or if there is any sort of material in this regards, plz mail it to: __ email removed by moderator
regards
sandhya

Hi,
You need to do the following:
1) Create an Activity type for the Assembly activity.
2) Define a Work Centre in PP (T-Code CR01) which represents the location where the Assembly is carried out.
3) Define a Cost Centre corresponding to the above Work Centre.
4) Plan for the Activity quantity for the combination of the Cost Centre and Activity type (KP26)
5) Plan for the Overhead Costs which are incurred on this Cost Centre which need to be included in the Standard cost of the Assembly.(KP06)
6) Assign the Cost centre & Acivity type to the Work Centre in CR02.(This is possible only after you do 5 above)
7) Execute the Plan price calculation (T-code KSPI)
After you do all of the above, when you do the Costing Run, all the relevant costs will be picked.
Ofcourse all the relevant master data for PP like BOM, Routing with the relevant assignments of materials to operations, etc should be in place.
Regards,
Assign points if useful

Assignment of Activity Types to Cost Centre

hi,
i am creating a work centre and for costing purposes i need to give the activity type and the cost centre.
even though i have defined an activity type and in it used an allocation cost element which in term is assigned to a cost centre,in the work centre when i search for the activity type the system shows an error.....No activity types assigned to cost center X, controlling area Y on 07.02.2007 where X and Y are variables ofcourse.
what could be the possible reason?
thanks and regards
shekhar

Hi shekhar,
Check using KL02 or KL03 again, especially the validity dates of the activity type and may be the coster center KS02, KS03 as well. I hope, that controlling area is fine.
There must be some settings wrong, ...
Please reward, wenn it is useful.
Kind regards,
Zhenbo

Usage of Activity types under Cost Centre.

Hi
I would like to know the usage of activity types under cost centre.
How to do direct and indirect activity type allocation. Please explain indetail from scratch to finish with necessary t.codes at the earliest.
Appreciate your cooperation at the earliest.
regards.

Hi,
as far as usage of activity types under cost center is concerned it is addressed by ist reply to your query by another SAP Guru.
with respect to Direct activity allocation,
When we know the source cost center and target cost center then we allocate the activities from source cost center to Target cost center (T.Code KB21N)
The cost is picked from the planned price given at KP26.
Withe respect to Indirect activity allocation:
We do not know the Traget Cost center in this case.
First we need to enter the activity consumption in the sender cost center (source cost center).
Then we need to allocate then indirectly to the target cost centers on some allocation basis using distribution cycles
I am sure this will clear your query.
Please assign points suitably
Best Regards
surya

Diff. b/w Activity type and Statistical figures

Hi,
Could any one explain difference b/w Activity type and Statisfical figures. I observed both usages & purposes r same and not find any difference. If so, why there is need of other.
Along with i also want to know what's internal orders? Can't we do the same job in Cost Center Accounting.
Thanks in advance.
Krishna.

hi
Even it looks like similar there are some differences and meant for different purposes
pl. go through the following links .
/thread/367171 [original link is broken]
IO/ and Cost Center
best regards

Inventory load using 561 movt type and auto confirm TO in MB1C using 561 movt type

Hello All,
I am doing the inventory load using 561 movt type in MB1C. Then the material is in 998 storage type and bin "AUFNAHME". my requirement is that i want to confirm the TO, when i do the MB1C itself for the 561 movt type. Is there a way in the SAP, where i can trigger the TO confirmation in the background automatically, when i use 561 movt type in MB1C.
Right now my thought processing is that as below,
i create the inventory load using 561 movt type in MB1C and use the LT10 and move the stock to a different bin and confirm the TO.
In the above step, i am using LT10 as a extra step for confirming the TO, which i am trying to decreasing my configuring in such as way for the movt type 561, so that it will automatically confirm the TO in the background, while doing the MB1C.
My 2nd question is, when i have 5000 different materials, which are inventory loaded using 561 movt type and MB1C. I am trying to auto confirm the TO in the background, when doing the MB1C for 561 movt type itself.Secondly, if it doesn't work, then i can goto LL01 and pick the unconfirmed TOs and mass confirm the TO's.
On the whole, my questions are is there any std config in SAP to auto confirm the TO for movt type 561 in MB1C. If it is not possible, then i need the best way to mass confirm the TO's in SAP.
Thnks,
Kapil

Hello Kapil,
Let me explain the process step by step
Assumption/mandatory criteria- The process is applicable only in case you do not have storage unit management active This process is warehouse transfer w/o WM transaction. This method is based on principle of MB1A- 711/712 movement type.
(1) Use OMJJ and create new movement type by coping 561 for ex- "Z61". In field selection (flield selection from 201) double click on WM and make the entry "WM storage bin and storage type as required entry from suppress.
(2) Now use MB1C with above customised movement type. At the end of this transaction,system will take you to the screen to make an entry in storage type and storage bin. Post the entry.
That's it. Your stock would be in warehouse as well as IM stock would be in sync. There is no TR/TO. You can create LSMW to upload the data by this method. If you have SUT defined then you can follow the same process as above. But after that do not forget to update LQUA-LETYP field with respective SUT. However, you can not use this method in case you have SU management active.
My view with this upload process- Please use other data uploading method which are not at all time consuming. In more than 90% of most of the business scenarios, storage unit type is used. Hence you will have to perform additional activity of updating LQUA-LETYP-storage unit type field. If this is the case, then why cant you use other uploading method?.
Thanks,
Milind

Activity type and skf calculation

Dear Forum,
I would like to seek advice of the difference of both calculation.
1 skf - 1 big amount allocated to all cost center. if the skf measurement is number of employee, then the cycle will apportion the amount according to the number of employee. correct?
2 activity type - if the measurement is hour, then base on amount per hour defined in kp26 to get the total amount. correct?
3 kp26 only can be used by activity type. not applicable to skf. correct?
please advise me.
Thanks

hi,
1 . As long as you have the Variable portion type as SKF defined in your Allocation cycle you can distribute the cost according to the SKF defined for each cost center. hence you are correct.
2. yes based on the per unit price of the activity type defined in the KP26 the total amount of the activity is calculated.
(FOR ACTUAL the tcode is KBK6)
3. absolutely its only for activity types.
Hope this helps.
regards
sayeed

Physical significance of activity type on cost center

Hi,
I want to know what is the phsical significance of definiing activity type on cost center.In my situation the activity type is defined on the cost center assigned to the maint. work center.Due to this actual cost is geetting reflected on my order due to the activity rate but physically no such cost is being incurred by the maintenance people.As when any material is consumed on a PM order then the MAP of material is shown as actual cost in PM order.This is ok.Then how this activity type defining is valid on the cost center when no such work is being carried out.Pls. reply.

As mentioned in earlier posts, we will assign Cost center & Activity types in Labor work center. In KP26, for this Cost center, Activity type & period (say Jan to Dec 2011), cost (Fixed & Variable) will be maintained.
Reason to maintain the KP26:
In Business, sometimes contract labors will be paid on hourly basis. If those people do the Maintenance job, as we are paying them, we need to calculate the labor cost.
For Permanent employee, company used to pay salary (fixed & variable component on monthly basis). That will be converted into hourly basis & the same will be maintained.
So that, for expense company doing (paying salary), there should be some offset (getting the work). If you have integration with HR & PM, you can capture the actual hours entered in IW41 in HR time sheet.
Even though there is no such cost explicitly, these cost should be calculated to arrive at the actual work done on equipment.

Use of activity types and cost splitting

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