Variable Costs using SKF in Indirect Activity Allocation

Hello
I am trying to use indirect activity allocations and KSPI to transfer costs from an activity in an indirect cost center to multiple direct cost centers. The Receiver tracing factor is planned SKF (i.e. number of employees). The issue I have is that when doing this allocation, the variable cost at the indirect cost center gets transferred as a fixed cost to the direct cost centers. We need to have this as a variable cost on the direct cost centers. Can anyone suggest anything or let me know if I'm doing something wrong?
Here are my sender/receivers:
Sender:
Quantities Calculated Inversely
Plan Values
Receiver tracing factor:
variable Portions
Planned SKF
No Scaling
Thank you

Hi Mark
I was able to achieve this in the past...as below
1. On the indirect Cost center - Use an activity type Catg 2 (indirect entry indirect allocation)
2. On the receiver cost centers - Use an act type Catg 4 (Instead of SKF)
3. Enter the Plan Act Qty for this Act Type on the receiver direct cost centers in KP26 and Actual Qty in KB51N
4. In cycle definition - Var Portion Type would be based on Plan Act Qty instead of SKF
5. Execute KSCB - Folllowed by KSPI.....
You can also try the above using SKF on receiver cost centers - But Act Type Catg 2 on the Sender Indirect cost center.... I guess, this is what you have done... In my opinion, this should also work...
I believe, to transfer the costs as variable - You need to plan them in KP06 as variable (i.e. Activity Dependant Planning)....
So, Plan your expenses on the indirect cost center in KP06 with reference to the Act Type Category 2
br, Ajay M

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Iteraton in Indirect Activity Allocation

Hi All,
At the outset, I WISH YOU ALL A HAPPY N PROSPEROUS NEW YEAR 2009.
Issue:
There are around 15 Service and Utility Cost centers and about 50 Administrative Cost Centers.
The cost to be planned for these cost centers includes Fixed Cost and Variable Cost. But in SAP, Cost Element Planning for these cost centers in KP06, will allow only planning of Fixed Cost because there is no activity planning for these cost centers.
IS THERE ANY WAY TO PLAN VARIABLE COST IN ACTIVITY INDEPENDENT PLANNING?
For Service and Utility Cost Centers above, I created activity types and could plan both Fixed and Variable costs. But, Clientu2019s business process demands iteration to take place among Service and Utility Cost Centers. Once the system does the iteration, then what ever the cost Per Unit comes in each of the Cost Centers is considered to be their final Per Unit Cost of services.
I created Plan Cycle for Indirect Activity Allocation. But there is no u201CIterationu201D possible in that. The Activity Type Category in Plan is 2/3 and in Actual u201CBlanku201D (As in Planning).
Because there is no Iteration available in Plan Indirect Activity Allocation, I created cycle for only Service Cost Centers (to get the Service Cost Per Unit) and Assessment Cycle to allocate the cost from Service Cost Centers to Production Cost Centers. When I run the Indirect Activity Allocation cycle, the system is allocating the cost from sender Service Cost Center to all Receiver Cost Centers by taking the Ratio of SKF instead of considering the Actual SKF Value.
Example:
Sender Service Cost Center A has Planned Activity Quantity of 1000 hr and Planned Cost of USD 100000. So, Planned Cost per Hr is USD 100. The receiver Service Cost Centers B, C, D has consumed 10, 20 and 30 hours respectively and balance of 940 hours were consumed by Production Cost Centers.
My Plan Indirect Activity Allocation Cycle is as followsu2026
Sender Cost Center       Receiver Cost Center     RTF
Service Cost Center A      Service Cost Center B     10
               Service Cost Center C     20
               Service Cost Center D     30
So, I expect the system to allocate cost of USD 1000, USD 2000, and USD 3000 from Cost Center A to B, C, and D respectively.
But I found the system taking the ration of B: C: D i.e., 10:20:30. So, the allocated amount isu2026
To Cost Center B = (10/60)* USD 100000
To Cost Center B = (20/60)* USD 100000
To Cost Center B = (30/60)* USD 100000
Though in u201CTarget=Actualu201D (which is based on u201COperating Rateu201D) method iteration is possible, this method is not suitable for clientu2019s business process, as, the actual activity hrs will be calculated by the system automatically based on the changes in output of final receiver cost centers. (Ex. When I do Plan Reconciliation).
I seek your suggestion regarding this.
Srikanth Munnaluri
Hewlett Packard
+91 9002288376
Edited by: Srikanth Munnaluri on Jan 5, 2009 7:15 AM

Hi Srikanth,
Did you get a way to plan varriable costs in activity independant planning? Even I am looking for a solution to the problem. Let me know if you found out a way to do it.
Thanks
Naveen

Problem in Indirect activity allocation ( KSCB)

Hi!
I am getting the error while executing kscb like below:
Cycle OSVIUSTES2, start date 20110301, does not include any senders.
No valid sender entries were found.
Message no. GA710
I have maintained planning for sender cost centre & activity ype (KP06).
properly given sender cost centre /activity type and receiver cost center/activity ype in cycle ( KSC7).
sender activity type category is 3 ( manual entry, indirect),, receiver activity type category is 1 ( manual entry, manual allocation).
can any one suggest where could be wrong.
regs,
ramesh

Hi!
I am explaining my scenario here:
I have done cost centre planning in KP06 for production cost centre and production activity type for example cost centre 1 & cost centre 2 and activity type 1 with some cost elements.
I have executed LTP and passed the Planned activity quantity to KP26.
Now I have some costs like energy , which I want to distribute to production cost costre using indirect activity allocation. So I have defined IAA cycle ( as you suggested using rule 3. quantity calculated inversely and sender cost centre is costcentre3 and activitytype2 ( category 2 indirect entry,indirect allocation) and receiver as cost centre 1 & 2 and activity type1 . sender values 1000 and receiving tracing factors cost centrea 85% & cost centre2 15%.
I have maintained cost centre planning for sender i.e cost centre3 & activity type2 in KP06.
Executed the IAA cycle (KSCB) with out errors.
Now exeucted KSPI, then system is picking the costs maintained for cost center 1 & 2 , it is not picking the costs which were mainttained for cost centre 3 & activity type 2.
my assumption is, once IAA is executed, system has to transfer the costs to production cost centres and then arrive activity prices.
Please suggest me where I went wrong?
regs,
ramesh

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

Plan Indirect Activity allocation

Hi everybody,
during the execution of Plan Indirect Activity allocation, after filling the cycle I detected the following error message:
"You are not authorized to run cycles on CC : Z910
Message no. 00368
Diagnosis
Error message of the batch input with variable text. A more precise explanation is not possible."
Any suggestion on this, please?
Thanks in advance,
Barbara

Hi Ramakrishna,
I've thought this but the strange thing is that the error message appears only for some cycles and not for all. As a matter of fact one of the cycles that I've created has been successfully executed without any problems.
Any idea about this strange system behaviour?
In the meanwhile I'll check in relation to the authorization profile.
Thanks in advance.
Barbara

Define Cost Elements Range for Internal Activity Allocation

Dear All,
I have the following scenario, for SAP standard they have defined the Secondary Cost Elemenets 641000 - 641999 as the Internal Activity Allocation. I would like to ask where in SPRO configuration can I change this range with my own custom Secondary Cost Elements 400000 - 499999.
Thanks

I have not come across any SAP standard number range. They are client specific.
Also your question regarding number range for Secondary cost elements is not clear. For creation of same you dont require any number range I suppose.
Number range in SPRO can be maintained in KANK
Regards,
Divraj

Difference between Indirect & direct activity allocation?

Hello all,
please send any information on the subject. Thanks.
Ashwini

Direct activity allocation is used when quantity is known for the work done e.g machine hours or time hours. Allocation is done via KB21n in CO.
Indirect activity allocation is used when quantity is not directly known and cost is allocated on the basis of statistical key figures e.g. number of employees.

Indirect act alloc Vs BCS Activation

Hello,
The customization documentation to BCS component assignment - Fund and Func area tells that BCS is not supported for indirect activity allocation (RKIL).
I cannot understand - "is not supported" means that this operation never works with BCS active or it works correctly just some BCS functions are not available?
Has someone used RKIL (KSC5) with Fund and Func area active in 6.0?
Thanks,

Thanks a lot, its good news for us
Have you used IAA with BCS Active? Maybe we forgot some customizing?
FMDERIVE shows that all BCS assignments are derived, the Func area in cost center master data is present, but the F6804 error message (BLANK value of Fund) comes

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

What's the diff betweeen Direct & Indirect Activity All

Hello Experts,
please lemme know the diff between Direct Activity Allocation & Indirect Activity Allocation.

Hi Hussein,
Direct Activity Allocation and Indirect Activity Allocation
Hi Joshi,
Direct activity allocation involves the measuring, recording, and allocating of business services performed. To do this, you must create the relevant (measurable) tracing factors (allocation bases which can be used as cost drivers). In Cost Center Accounting these are known as activity types. Activity allocation occurs, for example, when business transactions are confirmed or when posting activity quantities to accounts. The system multiplies the activity produced by the price of the activity type.
To do so, for the cost centers or business processes involved, you must plan activity types either using prices set manually or using subsequent iterative price calculation.
If the receiver of the activity allocation is not a cost object (such as, cost center, business process, or internal order), then the following applies: If no price was set manually, then the plan price is used. If you have not executed an iterative price calculation, then the manually set price for the activity type is used for direct activity allocation (the price in the plan/actual (000) version).
If the receiver of the activity allocation is a cost object (such as, a production order or a product cost collector), then the price used for valuation is determined according to the valuation variant (which is linked to the cost object for the simultaneous costing via the costing variant). If the receiving cost object is not linked to a costing variant for the simultaneous costing, then the plan price for the valuation period is used.
The service cost center "Plumbers" (1000) performs 2 hours of the activity type "Repairs" for production cost center "H" (5000). The plan price for the repairs activity type is USD 15 per hour. In direct activity allocation, this price is valuated as follows:
2 hrs X 15 USD/hr = 30 USD
The u201CPlumbersu201D cost center is credited with this amount and the HI production cost center is debited correspondingly.
Indirect activity allocation can be used to automatically allocate planned and actual activities.
You can specify keys to allocate activity, which is not possible when you use manual activity input in the plan or actual activity allocation. In addition, if calculating the sender activity quantities involves too much time or expense, the system can determine the activity quantity inversely based on the activity of the receivers.
If you execute indirect activity allocation without completing planning for the combination cost center/activity type, you must activate the actual price indicator in the activity type master data.
A special type of indirect activity allocation for actual allocation is the plan=actual activity allocation. In contrast to other types of indirect activity allocation, the plan=actual activity allocation allows for a multiple level activity network to be determined iteratively with the operating rate as the tracing factor.
You can choose between two methods of indirect activity allocation, depending on the activity types category. These methods are determined for each segment and can be combined in one cycle.
Activity quantities can be determined on the sender object:
For certain activity types you can determine the total activity quantity for each sender. These are category 3 activity types, Manual entry, indirect allocation.
Using indirect activity allocation, these posted activity quantities are distributed by the senders among the receivers defined in the segment according to their allocation bases. The corresponding segment must use the sender rule Posted quantities. Any receiver rule can be used, with the exception of Fixed quantities.
The Quality control cost center uses 1000 hours of the Testing activity type. This cost center provides activity for the cost centers Goods receipt and Finished products. Allocations are made on the basis of the tracing factor Number of test items (TI). These are 4000 items for the Goods receipt cost center and 6000 items for Finished products. This corresponds to an activity input of 400 hours for Goods receipt and 600 hours for Finished products.
The price per activity unit for the Quality control cost center is 50 USD/hr. This results in activity output costs of 50,000 USD. The receiver cost centers are debited with the following costs based on the tracing factor TI.
Goods receipt: (50,000 USD X 4000 TI) / 10,000 TI = 20,000 USD
Finished products: (50,000 USD X 6.000 TI) / 10,000 TI = 30,000 USD
Pls revert back for futher explanation...
Srikanth Munnaluri

Target = Activity allocation(KNMA)

Hello All,
Can any one please help me on the following issue. (Indirect activity allocation)
The system is considering both variable and fixed planning costs adjusting with operating rate while calculating the target cost and settling to receiving cost center. This is wrong, it should only consider variable cost with operating rate in deriving the target cost. can any please suggest me where should I focus to solve this issue. Early help in this regard is very much appreciated.
Thank you
Srinivas

Hi Srinivas,
I missed this post.
The system behaviour of considering both variable and fixed price is correct.
if you don't need the fixed cost, then don't update it.
Please let me know if you need futher assistence
Best Regards
Surya

Fixed and variable cost element's cost

hi,
i would like to clarify. need your kind advice.
1) can direct cost has both fixed and variable cost? can have example?
2) can indirect cost has both fixed and variable cost? can have example?
3) direct cost only happens in direct cost center and indirect cost only happens in indirect cost center?
4) can direct cost center assign to fixed cost element and variable cost element? Likewise, indirect cost center assign to fixed cost element and variable cost element?
thanks

Hi,
As per my understanding
Direct cost to a department could be variable or fixed.
Example: A supervisor in the X department would be a direct cost to the Dept A department. Since the X salary is likely to be the same amount each month regardless of the quantity of products manufactured, it is a fixed cost to the department. The supplies furnished to the X department will be a direct cost to the department, but will be a variable cost to the department if the total amount of supplies used in the department increases as the volume or activity in the department increases.
Indirect cost is the Power used to operate a production machine.
Example: The cost of the Power is variable because the total Power used is greater when more products are manufactured on the machine. Depreciation on the production machine is also an indirect product cost, except it is usually a fixed cost. That is, the machineu2019s total depreciation expense is the same each year regardless of volume produced on the machine.
As you can see, costs can be direct and indirect depending on the cost object: product, department. The cost is fixed if the total amount of the cost does not change as volume changes. If the total cost does change in proportion to the change in the activity or volume, it is a variable cost.

3 kind of activity allocation

Hi all friend,
There are 3 type of activity allocation which I have confusion.
a) internal activity allocation - meaning i must use secondary cost element?
b) direct activity allocation
c) indirect activity allocation
Need help what is the difference for each of the above.
thank you.
help.sap.com

Internal Activity Allocation
http://help.sap.com/saphelp_46c/helpdata/en/35/289f319c4a1941e000080009927d9b/content.htm
Direct Activity allocation
http://help.sap.com/saphelp_45b/helpdata/en/99/0159b69c9311d1a5820000e82de878/content.htm
InDirect Activity allocation
http://help.sap.com/saphelp_46c/helpdata/en/66/bc6f7643c211d182b30000e829fbfe/content.htm
Srinivas

BAPI - Enter Indirect Acty Alloc.Reposting

Hi ABAP Gurus!
I would like to use a BAPI to create Indirect Activity Allocation Reposting (Transaction KB65).
Anyone can direct me to a BAPI or do I have to create a BDC?
Thanks!

Please see note 368972.
Rob

Modify posting period in KB65 - Internal Activity Allocation reposting

Hi Gurus,
I have lots of documents originally created in CATS.
The user who did the CAT7 transfer made a mistake and put in posting date (01.03.2010) on the selection screen of CAT7. All items have been posted on 01.03.2010 instead of the original date of the records in CATS.
When I try to repost these items in KB65 and modify the posting date to February, 2010 the system issues an error message (BK214) that the new posting period is earlier than original and it is not possible to modify.
Message BK214 can't be switched off either.
Is there any chance to bypass this? Or any other idea how to modify the posting date of these items from March to February?
Thanks,
Jeno

Try KB21n......we used to change the activity allocation through this transaction.....should work in your case
Thanks
Assign points if useful

Variable Costs using SKF in Indirect Activity Allocation

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