AC412-CostCenterAccounting-AdvancedFunctions

AC412 Cost Center Accounting: Advanced Functions AC412

Release 470 04/11/2006

© SAP AG 2001

AC412 Cost Center Accounting: Advanced Functions

© SAP AG

AC412AC412

Cost Center Accounting:Advanced FunctionsCost Center Accounting:Advanced Functions

R/3 System Release 4.6 C January 2001 Material number 5004 4284

© SAP AG 2003

Copyright

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Course Prerequisites

AC410 - Cost Center Accounting

AC415 - Overhead Orders (recommended)

Theoretical knowledge and practical experience in Cost Center Accounting.

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AudienceProject team members who are responsible for implementing Overhead Cost Controlling extended functions.

Financial accounting employees responsible for efficient activity allocation, extended planning functions and differentiated analysis of target costs, variances, marginal costs, or actual price revaluation.

Duration: 2 days

Target group

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Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Overview


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Course Goals

At the conclusion of this course, you will be able to:

Distinguish various controlling concepts for responsibility areas

Configure and use the advanced functions for planning and activity allocation

Analyze information and effects of various cost accounting systems in overhead cost controlling


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At the conclusion of this course, you will be able to:

Describe and maintain the advanced planning functions for quantity-based planning

Use plan reconciliation, plan cost splitting, and plan activity price calculation

Use the various tools for activity allocation of actuals

Investigate and analyze variances between plan or target costs and actual costs in detail

Distinguish various cost accounting systems and their effect in overhead cost controlling

Course Objectives


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Course Content

Unit 1 Course Overview

Unit 2 Activity allocation: Concept and Master Data

Unit 3 Enhanced planning techniques

Unit 4 Actual cost allocation

Unit 5 Period-End Closing Allocations and Analysis

Unit 6 Summary

Preface

Appendix


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Course Overview Diagram

Activity Allocation:Concept and Master Data

Advanced Planning Techniques

Actual Cost Allocation

Period-End Closing:Allocations and Analysis


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A fictitious firm is portrayed, which produces computers.

A detailed analysis of actual data and variances is required for each area of responsibility.

The value flows and cost incurring factors in the enterprise are to be explained as clearly as possible for internal activity allocation. This is to be done without causing any large amounts of data entry work.

The options provided by different cost accounting systems (such as variable costing or revaluation at actual prices) are to be examined for medium-term cost accounting purposes.

Main Business Scenario


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Business Scenario: Enterprise Structure

QualityAssurance

Service

Energy

Productionof Computers

Productionof Chips

Production

Repairs


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Activity Allocation: Concept

Master Data: Activity Type

Contents:

Activity Allocation: Concept and Master Data


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Distinguish between the concepts of cost assignment and activity allocation

Interpret the goals of each concept

Enter the most important basic settings for master data Activity type.

At the conclusion of this unit, you will be able to:

Activity Allocation: Unit Objectives


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Activity Allocation






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To establish the cost accounting concept for your enterprise, you:

Work out the major benefits and disadvantages of activity allocation for the enterprise

Create activity types for the cost centers whose costs have to be analyzed by reference to operating levels

Activity Allocation: Business Scenario


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Value Flows in Controlling

ECEC--PCAPCA

HR

Profit Center A

ccounting

HumanResources

Profitabilitysegment

Financial Accounting

Financial Accounting

Asset Sales Revenues

FIFI

Sales andDistribution

Sales andDistribution

MaterialMgmt.

MaterialMgmt.

MM SD

Expense

COCOPCPC

Cost centers

COCOOMOM

COCOPAPA

Activitytypes

Processes

Salesorders,

Projects

Make-to-stock

Internalorders

MaterialvaluationMaterialvaluation

COCOCELCEL

ProductionProductionPP

Overhead Cost Controlling Product CostControlling

Profitability Analysis

Cost Element Accounting

Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the activity provided by an organization.

Therefore, all cost-relevant data flows automatically to Controlling from Financial Accounting. As part of this process, the system assigns the costs and revenues to different CO account assignment objects such as cost centers, business processes, projects or orders. The relevant accounts in Financial Accounting are recorded in Controlling as cost elements or revenue elements.

You use Cost Center Accounting for controlling purposes within your organization. It is the appropriate tool for monitoring all of the overhead costs incurred and allocating them appropriately to the place where they were incurred.

Product Cost Controlling calculates the costs arising from the manufacture of a product or the provision of a service. It enables you to calculate the minimum price at which a product can be profitably marketed.

Profitability Analysis analyzes the profit or loss of an organization according to individual market segments. The system allocates the corresponding costs to the revenues for each market segment. Profitability Analysis provides a basis for decision-making, price determination, customer selection, conditioning, and for choosing the distribution channel.


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Profit Center A

ccounting

Internalorders

COCOCELCEL

Responsibility Area Controlling

ECEC--PCAPCA

COCOOMOM

COCOPAPA

Processes

COCOPCPC

Profitability Analysis

Cost Element Accounting

Product costControlling

- Quantity-basedplanning and reconciliation

- Price calculation- Target cost calculations- Variance analysis- Cost accounting system

Overhead Cost ControllingOverhead Cost Controlling

Overhead costs are costs that cannot be directly assigned to the manufacture of a product, or the provision of a particular service. You assign all overhead costs to the locations at which they were incurred, or to the activities from which they arose.

The cost center represents a separate location of cost occurrence within a controlling area. You can create cost centers according to a number of criteria, including functional considerations, allocation criteria, activities provided, or according to their physical location and/or management area.

Activity types define the type of activity that can be provided by a cost center. Activity provided by one cost center to other cost centers, orders, or processes, represent the utilization of resources of the sender cost center. You valuate activities using a price calculated on the basis of certain business or management information.

Business processes combine sequences of activities within an organization over and above individual cost centers. They can be used to control organizational processes in line with particular functions.

Internal orders are used to plan, collect, and analyze the costs arising from internal activities.

There are different methods for allocating values and quantities, depending on the type of CO object in question. You can use advanced analysis tools at period-end on quantity allocations: The system uses


the operating rate (target costs) to compare the planned costs with the corresponding actual costs. You can then analyze the variances identified, and their causes.


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Cost distribution

OrdersProjects

Cost CenterCost Center


Processes AdvantagesSender controlled allocationSimple or no planningPrimary and secondary cost distributionAnalysis: plan/actual or actual/actual comparison

MethodTransaction-Based

Reposting costsReposting line iemsManual cost allocation

PeriodicAccrual calculationPeriodic reposting DistributionAssessmentCost CenterCost Center

Assigning costs to cost centers enables you to determine where costs are incurred within the organization. If you plan costs at cost center level, you can check cost efficiency at the point where costs are incurred.

Actual cost entry: Primary costs are transferred to Cost Accounting from other components, for example, Materials Management (MM), General Ledger Accounting (FI-GL), Asset Accounting (FI-AA) and Payroll Accounting (PY). Additional costs or valuation differences are periodically entered using the accrual method, or the overhead or plan=actual processes.

Actual Cost Allocation: You can use various methods to allocate the actual costs you have recorded. The system distinguishes between transaction-based allocations, which occur within one period, and period-based allocations, which occur at period end.

Characteristics of the cost allocation methods:

Either no planning or only simplified planning is necessary

The sender specifies the allocation amount.

Both primary and secondary costs can be transferred


Various reports are available for the cost center analysis, which are based on plan-actual or actual-actual comparisons.

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OrdersProjects



Processes


Activity Allocation

ActivityType

ActivityType

ProductionOrders

AdvantagesFixed and variable costsReceiver-controlled receiver input (demand)Plan reconciliationPrice calculation with cost component splitAnalysis: Target/actual comparisons and advanced variance analysis

MethodTransaction-Based

Direct activity allocation(confirmation from orders)

PeriodicIndirect activity allocationTarget=actual activity allocationTemplate allocation

More advanced methods of overhead cost allocation are also available. You can use these methods throughout the organization, or in separate particular problem areas. They can help determine what internal activities are needed to supply services or products, and to market them. This enables you to allocate overhead costs according to resource consumption and activity utilization. The SAP R/3 System can automatically determine the quantities used in many cases, considerably reducing the expense of activity allocation. This removes an argument often given in organizations favoring simple assessment and overhead calculation methods. Along with time-saving automatic allocations, the integration of Overhead Cost Controlling in the R/3 System environment minimizes entry of actual data and reduces the work involved in planning.

Activity (Type) Allocation: Activity allocation uses the activity produced by a cost center as the allocation base for the costs. You can use activities to measure the operating rate or the rate of capacity utilization for a cost center. The target costs of the cost center refer to the activity output. When you allocate internal activity, you enter the quantity of the activity to be allocated. If not, then the system derives this quantity automatically. The system needs an activity price to allocate costs and to allocate activity. You can either set this price manually, or you can calculate it, using planned or actual costs.

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Costs

Kfix (Plan)

Target/actualcomparison?

Marginal costs?Variances?

Cost Distribution

Activity Allocation

Plan Costs Actual Costs

Plan/actualcomparison?

Actual/actual comparison?Balance?

Activity (hrs)h (Plan)

Allocated actual costs

Target costsActual costs

Plan costsK (Plan)

h (Actual)

Time

Goals of Each Concept

Overhead costs from planning, management, quality control, and coordination in such areas as research and development, procurement, and work preparation grow ever more important in comparison to actual product manufacture. Although direct activity output provides a great deal of cost transparency to which an organization can apply proven cost controlling methods to reduce costs, most managers have already exhausted most of these options. The interconnections in overhead costs, however, often remain unclear and the optimization potential unrealized.

At the end of the period, you can use the methods of activity allocation to compare the planned costs (target costs) and their corresponding actual costs, based on the operating rate. You can make a source-based analysis of the resulting target/actual variances, and use the analyses for further managerial accounting measures within Controlling.

Unlike the analysis tools used in the cost assignment procedure, more detailed Controlling instruments are also available:

Statistics on the costs dependent on the current operating level

Advanced variance analyses

Comparison and, if required, revaluation at actual prices

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Identify the most important indicators for activity types

Describe the importance of the activity type categories

Describe the importance of the various price indicators

At the conclusion of this topic, you will be able to:

Activity Allocation: Master Data - Activity Type

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Activity Type: General Settings

Activity Type 1414 CPU MinutesControlling area 1000 CO EuropeValid from 01.01.1997 to 31.12.9999

Name CPU Minutes

Description CPU Minutes, indirect calculation

Activity unit MIN Minute

Cost center categories *

Basic data Indicator Output

Activity Type Edit Goto Extras Environment System Help

History

Basic Data:Basic Data:Unit, allowed cost center categoryUnit, allowed cost center categoryIndicator:Indicator: blockedblockedOutput:Output: alternative quantity unitalternative quantity unitHistory:History: change documentschange documentsEnvironment:Environment: use of activity typesuse of activity types

Activity Type

Activity types classify the activities provided by a cost center. If a cost center provides activities for other cost centers, orders, processes, and so on, then this means that the resources of this cost center are being used. The costs of these resources need to be assessed to the receivers of the activity. Activity types serve as tracing factors for this cost allocation.

In an internal activity allocation, the quantity of the activity, such as the number of repair hours, is entered into the system (manually or automatically). The system calculates the associated cost based on the activity price and generates a debit to the receiver and a credit to the sender for both the quantity and costs. The internal activity allocation is carried out via secondary cost elements, which are stored in the master data of the activity types as default values.

You can restrict the use of the activity type to certain cost element types, by entering the allowed cost center types in the activity type master record. You can enter up to eight allowed cost center types, or leave the assignments "unrestricted" by entering an asterisk (*). If you change the cost center type, be careful to avoid inconsistencies with information stored in the cost center master data.

You can assign any number of activity types, or none at all, to a cost center. An activity type is assigned to a cost center during planning.

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Activity Type Category

Activity Type Category 2 indirect calculation, indirect allocation

Allocation cost element 639100 IAA EDP assets

Price indicator 1 automatically calc. based on planned activity

Activity type category actual As in plan

Actual price indicator

Average prices

PreDistribFixedCosts

Actual quantity set

Plan quantity set

Variance values for actual allocation

Allocation default value

Which method should be usedWhich method should be usedto allocate the activity type?to allocate the activity type?

Should the actual activity typeShould the actual activity typebe allocated using a differentbe allocated using a differentmethod?method?

Activity Type

The activity type category is used to determine whether and how and activity type is recorded and allocated. For example, for some activity types you can allow certain activities to be allocated directly based on transactions, while having others allocated automatically.

In activity type maintenance, you have the option of entering separate plan and actual activity type categories. An actual activity type category is required only if actual allocation varies from plan allocation. Otherwise, the R/3 System automatically adopts the plan activity type category in the actuals.

Actual quantity set: This setting determines whether you can post a manual activity quantity in addition to the allocated quantity that credited the cost center. Manual posting is advisable when you want to determine the allocated activity quantity automatically, but you do not yet know the actual quantity from the sender side.

Plan quantity set: If you select this indicator, the planned activity quantity is not changed by plan reconciliation – even where planning for the object is not to be reconciled.

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Activity Type Categories: Time Spent Entering Quantities

No entry: Periodic"Indirect Activity Allocation"(backflush)

No entry: Periodic"target/actual activity allocation"(actual data only)

11Activity-related entry of sender and receiver quantities; "Activity Allocation"

Enter sender activity: Periodic"Indirect Activity Allocation"

Enter sender activity: "No allocation"




ActivityType

22

55

33

44

Activity Type Category 1: You plan activity quantities manually for activity types in this category. You enter actual activity quantities in internal activity allocation, based on business transactions. Plan activities are allocated to the receivers, using activity input planning. It may be necessary to reconcile the planned sender quantities and the planned scheduled activity.

Activity Type Category 2, 3 and 5: these allow you to automatically plan and allocate quantities. They will save you time and effort regarding postings and plans. Category 5 can be used only with actual data. Categories 2 and 3 are assigned using cycles and segments related to the planning or the period-end closing work. More detailed information on the differences is provided in later chapters.

Activity Type Category 4: You plan activity quantities manually for activity types in this category. The entry of actual activity quantities is transaction based. You cannot specify receiver objects for this. You cannot allocate to other objects. For this activity type category, you can nevertheless calculate target costs.

Changes between activity type categories 1, 2, 3, and 5 are possible, even if the individual activity type has already been used for planning, as these are only estimated amounts for activity planning. You can only make changes in activity category 4, or from activity type category 4 to a different category, if you have not yet posted in the planning or actual data of the fiscal year with each activity type.

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Activity Type: Price indicator

Optional: Actual prices:5: Iterative: actual costs / actual activity6: Iterative: Actual costs / capacity7: Manual actual priceNo calculation

PLAN:1: Iterative: Plan costs / plan activity2: Iterative: Plan costs / plan capacity3: Manually entered plan price

Optional Indicators:- Average price- Predistribution of fixed costs


ActivityType



To plan and allocate the activities, the system records quantities, which are measured in activity units. The valuation of the activity quantity results in a price. This price is recorded in separate fixed and variable portions, depending on the activity amount of an activity type. The apportionment of activities to the cost centers should therefore reflect the allocation of costs to the activity types.

You can specify the planned activity price manually or use a function to let the system automatically calculate the price. Prices can be calculated either on the basis of planned costs or actual costs.

If you set value 1 or 2 in the plan, new prices are calculated when the plan price is calculated. If you set value 3, you have to set the price of the activity type manually.

For actual allocations, you can enter a price indicator different from that in the plan. If you do not enter a price indicator for the actual allocation, the system uses the same price indicator for the actual and planning data.

The price indicators Actual 5 and 6 are used during the actual price calculation to determine new prices and revaluate existing price allocations in CO-OM. Value 7 allows you to determine an actual price manually. These indicators enable you to set a price that is scheduled and varies from the plan.

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Distinguish between cost assignment and activity allocation

Interpret the goals of each concept

Enter the most important basic settings for master data Activity type.

You are now able to:

Activity Allocation: Summary

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Exercise Data AC412 Explanation of the symbols in the exercises and solutions

Exercises

Solutions

Unit Objectives

Business Scenario

Tips & Tricks

Warning or Caution

Exercise Data Type of Data Data in The Training

System Controlling area 1000

Company code 1000

Business areas

1000, 7000

Profit center 1015, 1400, 1500

Standard hierarchy H1

Standard hierarchy node used in course

H-AC412

Cost centers Ener00 - Ener20 Rep00 - Rep20 PC00 - PC20 Chip00 - Chip20 Qual00 - Qual20

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Cost elements 400,000 Raw materials 403,000 Operating supplies 404,000 Spares 415,000 External activities 415,100 External processing 416,100 Energy basic charge 416,200 Energy consumption 417,000 Purchased services 420,000 Wages 430,000 Salaries 470,000 Room costs 473,100 Telephone 476,000 Office supplies 476,100 IT supplies 489,000 Accrued depreciation 613,000 DAA Setup 620,000 DAA Machine costs 628,000 IAA Quality 639,200 IAA Energy

Activity types (created by course participants) QuaH00 - QuaH20 kWh00 - kWh20 MaH00 - MaH20 RueH00 - Rueh20

Statistical key figures NPROD – units produced

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Activity Allocation: Concept and Master Data Exercises

Unit: Activity Allocation: Concept and Master Data Topic: Master Data

At the conclusion of these exercises, you will be able to:

• Describe the functions of activity types as master data

• Explain what activity type categories are used for

• Explain what the price indicator does

The exercises use the example of a firm that produces computers.

You will use advanced analysis methods and various allocation techniques to monitor the costs of areas of responsibility. Target costs and variances will be analyzed in order to establish a relationship between the internal costs and the activities.

You will therefore create a number of different activity types for your firm, which will reveal what activities caused the costs. Because not all activity quantities can be measured in practice, you can use activity type categories. Activity type categories enable automatic calculation and allocation of activity flows.

The exercises and solutions use the following menu paths:

CCtr: Accounting > Controlling > Cost Centers

IMG: Tools > AcceleratedSAP > Customizing > Edit Project > SAP Reference IMG

1 Familiarize yourself with the company used in this exercise. Analyze the existing structures in the system, and make your own user-defined settings.

1-1 Display your node H_TECH## (## is your PC number in the classroom) in the standard hierarchy of controlling area 1000 (under the node H9500-H-AC412). How many cost centers are there in the various areas of your firm?

Enter your cost centers in the organization chart.

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H_PROD__

H_SERV__

H_TECH__

1-2 Make your user settings in the information system. These default settings will facilitate entering data later.

Controlling area: 1000

Cost center group: H_TECH##

Planning: Current fiscal year, periods 1 – 12

Reporting period: Current fiscal year, periods 1 – 12

Plan version: Version 0

1-3 Go to the information system and analyze the plan and actual costs incurred by your firm up to this point. Call up the Plan/Actual Variance report for your cost center group H_TECH##. Make sure that no actual or plan costs have been posted for the current fiscal year.

2 Now create the activity types that you will use to measure the efficiency of your cost centers. At the end of the period, the costs incurred by each cost center will be compared against the activity output. All master data should be valid from January 1 of the current fiscal year to 12/31/9999.

When you create the activity types, follow the instructions exactly. Check whether you have entered the correct activity type categories and price indicators for the activity types (if necessary, look at the solutions to be sure).

Do not set any indicators that are not mentioned in the exercises (such as predistribution of fixed costs, actual quantity set, or plan quantity set).

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2-1 Create activity type MAH## (machine hours ##) in hours (h), which you will use later to measure the output of your chip production and PC production cost centers. This activity type can only be used by production cost centers (F). The activity should use transaction-based allocation in plan and actual data (activity type category 1). Choose an appropriate secondary cost element (such as 620000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Actual prices are calculated based on the actual activity quantity (Actual PI 5).

2-2 Create activity type SETH## (setup time ##) in hours (h). This is used later to measure the setup time of PC production. This activity type can only be used by production cost centers (F). The activity should use transaction-based calculations in the plan and actual (Type1). Choose an appropriate secondary cost element (such as 613000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Actual prices are calculated based on the actual activity quantity (Actual PI 5).

2-3 Create activity type QUAH## (quality check ##) in hours (h). This is used later to measure the time needed for quality checks of PCs and chips. This activity type may be used by all service cost centers (H). In plan data, the activity should be recorded manually (Type 1). In actual data, it should be recorded using indirect activity allocation (Actual Type 3). Choose an appropriate secondary cost element (such as 632000), since this passes on the origin of the allocation operation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). Likewise, actual prices should be calculated at period-end based on the activity output (Actual PI 5).

2-4 Create activity type REPH## (repair hours ##) in hours (h) which will be used to measure the activity output. This activity type may only be used by cost centers with cost center category R. The activity should allocated manually in the plan and actual data (Type 1). Choose an appropriate secondary cost element (such as 615000) so that the origin of the allocation is passed on to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the planned activity (PI 1). When the period is closed, the system calculates an actual price based on the actual activity quantity (PI 5).

2-5 Create activity type ENH## (energy costs ##) in units of kWh which will be used to measure the energy consumption of the production cost center. This activity type may be used only by cost centers with cost center category G. In the plan data, the activity should be recorded manually (Type 1), and in the actual data it should be recorded using target=actual activity allocation (Actual Type 5). Choose an appropriate secondary cost element (such as 639200), since this passes on the origin of the allocation to the receiver. At the close of planning, plan prices are calculated iteratively by the system based on the capacity (PI 2). This ensures that the high fixed costs

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needed to supply the activity are not allocated to the receivers of the activity. At period-end closing, the system calculates actual prices based on the capacity (PI 6).

3 Check the activity types you created. Go to collective processing and display the activity types you created.

3-1 Create an activity type group (AT##) that contains all activity types you entered.

3-2 In collective processing, choose your activity type group ## and note the allocation indicators of your activity types. To do this, configure a layout (or choose an existing one) that shows you the following indicators for allocation control.

Using the solutions, check to be sure the indicators entered are correct.

Activity Type

AllocCostElem.

CCtr Categ.

ATC ATC actl PI Plan price ind.

API Act. price

ind.

ENH## 639200 G 1 5 2 6

MAH## 620000 F 1 1 5

QUAH## 632000 H 1 3 1 5

REPH## 615000 R 1 1 5

SETH## 613000 F 1 1 5

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Activity Allocation: Concept and Master Data: Solutions

Unit: Activity Allocation: Concept and Master Data Topic: Master Data

The exercises and solutions use the following menu paths:

CCtr: Accounting > Controlling > Cost Centers

IMG: Tools > AcceleratedSAP > Customizing > Edit Project > SAP Reference IMG

1-1 Enterprise Structure

CCtr: Master data > Display Standard Hierarchy:

Expand node H_TECH## and all lower-level nodes (the nodes are under H9500 and H-AC412).

Diagrammtitel

PC##PC Production

CHIP##Chip Production

H_PROD##

ENER##Energy

REP##Repair

QUAL##Quality Check

H_SERV##

H_TECH##

1-2 User Settings

CCtr: Information System > User Settings

Basic data: Controlling area: 1000


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Planning period: Current fiscal year, periods 1 – 12

Reporting period: Current fiscal year, periods 1 – 12

Further entries: Plan version: Version 0

Save

1-3 Plan/Actual Comparison H_TECH##:

You should receive a message telling you that no costs have been planned or posted up to now.

CCtr: Information System > Reports for Cost Center Accounting > Plan/Actual Comparisons:

Cost Centers: Actual/Plan Variance

Fiscal year: Current year

Periods: 1-12

Plan version: 0


2 Create activity types

When you create the activity types, follow the instructions exactly. Check whether you have entered the correct activity type categories and price indicators for the activity types (if necessary, look at the solutions to be sure).

Do not set any indicators that are not mentioned in the exercises (such as predistribution of fixed costs, actual quantity set, or plan quantity set).

2-1 Activity type MAH## (machine hours ##)

CCtr: Master Data > Activity Type > Individual Processing > Create

Activity type: MAH##

Valid: January 1 of current year to 12/31/9999

Enter

Activity unit: h

Cost center categories: F

Activity type category: 1

Allocation cost element: 620000

Price indicator: 1

Actual price indicator: 5

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Save

2-2 Activity type SETH## (setup hours ##)


Activity type: SETH##

Valid: January 1 of current year to 31.12.9999

Enter

Activity unit: h

Cost center categories: F



Price indicator: 1


Save

2-3 Activity type QUAH## (quality checks ##)


Activity type: QUAH##

Valid: January 1 of current year to 31.12.9999

Enter

Activity unit: h

Cost center categories: H



Price indicator: 1

Actual activity type category: 3


Save

2-4 Activity type REPH## (repair hours ##)

CCtr: Master Data > Activity Type > Individual Processing > Create >

Activity type: REPH##

Valid: Jan. 1 of current year to 12/31/9999

Enter

Activity unit: h

Cost center categories: R

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Price indicator: 1


Save

2-5 Activity type ENH## (energy costs ##)

CCtr: Master Data > Activity Type > Individual Processing > Create >

Activity type: ENH##

Valid: Jan. 1 of current year to 12/31/9999

Enter

Units: kWh

Cost center categories: G



Price indicator: 2

Actual activity type category: 5


Save 3

3-1

CCtr: Master Data > Cost Centers > Cost Center Group > Create > AT##

Insert activity types

enh##

mah##

quah##

reph##

seth##

Save, return

3-2 Collective Processing

CCtr: Master Data > Activity Type > Collective Processing > Display >

Cost center group: AT##

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Execute

Choose layout: 1-SAP02 (Allocation control)

Continue

Activity Type

AllocCostElem.

CCtr Categ.

ATC ATC actl PI API

ENH## 639200 G 1 5 2 6

MAH## 620000 F 1 1 5

QUAH## 632000 H 1 3 1 5

REPH## 615000 R 1 1 5

SETH## 613000 F 1 1 5

Check the data using the solution. If you find incorrect settings in the control

indicators, change these indicators in individual processing.


© SAP AG 1999

Planning Scenarios

Manual Planning

Automatic Planning Techniques

Plan Closing

Contents:



© SAP AG 1999

Explain the difference between various planning scenarios and analyze their results

Use the different methods of manual and automatic cost and activity planning

Perform the final planning activities such as plan reconciliation, plan cost splitting, and plan price calculation


Advanced Planning Techniques: Unit Objectives


© SAP AG 2001

Course Overview






© SAP AG 1999

You want to use activity-oriented planning as a basis for detailed target cost analysis of your cost centers.

You want to plan important activities manually. Other activities, such as those for service cost centers, you want the system to calculate automatically to minimize your planning effort.

An overview of capacity and bottlenecks for all of your firm's activities is another requirement.

You want information on the fixed and variable prices for the activities of the primary cost centers that allocate directly to cost objects. This price information should include all of the firm's costs.

Advanced Planning Techniques: Business Scenario


© SAP AG 1999

Advanced Planning Techniques: Planning Scenarios

Describe and interpret the methods and results of different planning scenarios

Describe and change the configuration of the individual planning screens



© SAP AG 2001

Plan activity

Planning: Scenarios

Costcenter

Costcenter

h

Cost PlanningValue planningAnalysis: Plan/Actual comparisons

Advanced Cost Accounting Systems

Plan costs dependent on output (activity-dependent)

Iterative price calculation with fixed

and variable portions

Analysis: Target/actual comp.

Flexible standard costing

Optional marginal costing

Optional actual costing

Activity PlanningActivity planning:Quantity output/Cost centerCost planning(activity-independent)Manually entered price (or iterative fixed price)

Plan CostsPlan Assessment

- Distribution- Reposting

Plan Costs(activity-independent)

manual

Plan activity Costcenter

h

Plan Costs(activity-independent)

Variable

Fixed

Plan Costs(activity-dependent)

Cost center planning forms part of the overall business planning process, and is a prerequisite for standard costing. The main characteristic of standard costing is that you plan values and quantities for specific imeframes, independently of the actual values from previous periods. In planning you determine the control criteria for the subsequent analysis.

Cost planning enables you to compare the plan and actual costs for areas of responsibility after period-end closing.

If you use cost and activity planning, you can obtain actual values for your activity flow. At period-end you can compare plan and actual prices. In contrast to cost planning, you can compare a price calculated from planned costs with the prices of external providers. You can also follow the price development over various periods.

If you include fixed and variable plan costs per activity type in your cost planning (=activity-dependent planning), you can use the advanced analysis tools: - You can analyze your area of responsibilities based on target costs. This enables you to assess performance, not only based on plan data, but also on their activity (control of management effectiveness). - You can simulate planning that calculates costs automatically for different outputs. Only the variable costs rise (plan reconciliation).


- You can also determine the cost of an additional activity unit (short-term lower price limit, marginal costs).


© SAP AG 1999

Advanced Planning Techniques: Manual Planning

Differentiate between activity output on the one hand, and cost element planning or activity input planning on the other

Explain the difference between activity-dependent and activity-independent planning

Use the various methods of manual cost and activity planning



© SAP AG 2001


Plan activity

Plan activity

Activity Output

Change Activities/ Prices

Year 2001Periods 1 to 12Cost Center 4275 Production

Activity Type Plan acty Unit Fixed priceH

H12 0001 200

MAHSETH

14 0001 500

Capacity Variable Sched'dPPI11 0

11

Cat.0

MachineHours(Cat. 1)

Setuptime

(Cat. 1)

Output

Activity types are used to determine the quantity-based output of a cost center. They can be used to calculate the operating rate and target costs. They help control activities in cost centers, since the level of use can be measured at cost center level.

Activity types are allocated under a secondary cost element, which is stored as a default value in the activity type master data.

Activity types can be clearly defined in cost center accounting using the plan activity, capacity, output quantity, price and equivalence number.

The price can be set iteratively or manually. The iterative approach considers all activity relationships between cost centers calculated by the SAP system.

You can also overwrite the default value of the activity type category in the activity type master record. The System saves the new activity type category in the fiscal year and version in which you are currently planning.

For activity type planning, SAP provides the Standard-Layout 1-201, assigned to the Standard planner profile SAPALL.

(C) SAP AG AC412 3-10

© SAP AG 2001

Cost Element Planning

Fixed Costson

Cost Center

Fixed / VariableCosts of

Plan Activity (12000 h)

Cost Element Planning

Year 2001Periods 1 to 12Cost Center Production

Activity Type Cst Elmnt Variable

30.000430.000415.000Mach.Hrs

100.00050.000

Fix. Value Variable11

DKFix. Quantity

Input

ProductionProduction Mach.HrsPlanned CostsActivity-independent Plan Activity: 12,000 h

Planned CostsActivity-dependent

The activity-independent primary costs, which are organized into cost elements, are planned on the cost centers to which the actual costs are later assigned. If you plan activity-independent primary costs, you can only plan the fixed costs. For cost centers that use activity types, you can assign these fixed assigned to the cost center activity types during splitting. To do this, you use either the equivalence number, which you determine in the plan for the respective activity type, or the plan splitting structure. In price calculation, these fixed costs are used to calculate the fixed portion of the activity price.

Activity-dependent primary cost planning enables you to plan primary costs on a cost center, when these primary costs arise based on an activity (activity type). You can plan the costs that are dependent on these activities in fixed and variable portions. Variable costs are those that change relative to the volume of activity. If the cost center produces several activities, you can plan fixed costs based on both the individual activity types and on the activity-independent costs affecting the cost center. This means that the activity type price can include two fixed cost portions: - Activity-independent planned costs for the cost center - Activity-dependent fixed planned costs for the activity type

The standard layout 1-101 contained in the SAP profile SAPALL helps you to plan activity-dependent and -independent primary costs. Whether or not you enter an activity type in the initial screen of the planning decides if you plan activity-independently or -dependently.

(C) SAP AG AC412 3-11

© SAP AG 2001

Plan activityProductionProduction

EnergyEnergy

RepairsRepairs

SETH

MAH

Activity Input Planning (Manual)

Activity Input Planning

Year 2001Periods 1 to 12Cost Center Production

E-Acty.

MAHSETH

10.000,-5.000,-4.500,-

Fix. ValueVariableSE-CCtr

EnergyRepairs

Energy

SE-Acty.

ENHENH

REPHFix. Quantity

25.000,-1.000,-

Variable100 h

0 kWh200 kWh

25,000 kWh100 kWh

REPHCat. 1

KWHCat. 1

Input

Plan activity

Plan activity

Plan activity

Fixed / VariableConsumption ofActivities

Fix. Consumptionfor Cost Center

InputActivity-independent

Input activity-dependent

In addition to primary costs, secondary costs are often incurred by a cost center, because cost centers use services (activity inputs) from other cost centers. You can plan activity input as activity-independent and activity-dependent. Planning of secondary costs from activity allocations always requires a sender and a receiver cost center. You can use the standard layout 1-102 assigned to the profile SAPALL for this.

If you need services (for example service hours) that are not specific to one activity type, you choose activity-independent. This can occur when a cost center incurs costs that cannot be assigned to an activity type. You plan the quantity of the "sender" activity type that is made available from the sender cost center to the receiver cost center. To determine secondary costs, the fixed and variable prices of the activity type supplied by the sender cost center are combined and multiplied by the activity quantity consumed by the receiving cost center. The activity-independent secondary costs that are planned for a receiver cost center are always fixed costs.

Choose activity-dependent if you require activities for a specific activity type, for example programming hours. This may be the case when you plan programming for a machine that is used for only one activity type. For activity-dependent secondary costs, you plan the quantity of activity input to a receiver cost center dependent on a activity type produced by the receiver center. When planning, you must therefore specify the sender cost center, the sender activity type, the receiver cost center, and the receiver activity type.

(C) SAP AG AC412 3-12

© SAP AG 1999

Distinguish between the different concepts of automatic activity allocation in your plan

Use the various methods of automatic activity allocation in your plan (indirect activity allocation and template planning)


Advanced Planning Techniques:Automatic Planning

(C) SAP AG AC412 3-13

© SAP AG 2001

Indirect Activity Allocation in Planning Data (Category Three)

Cycle definition:Distribution of sender quantity:

- Planned quantities- Fixed quantities

based on tracing factors per receiver- Percent- Fixed quantities- Plan statistical key figures- Planned costs- Planned activities- ...

Plan theactivity provided

Receiver inputis automatically planned

1.1.

Cycle Flow:- allocation of planned activities

from sender to receiver

4.4.

Plan anytracing factors

Cost CenterCost Center Cat. 3

2.2.

3.3.Cost CenterCost Center


Indirect activity allocation automatically assigns activities in the plan. In contrast to manual activity planning, you define the key to be used for automatic plan allocation. As with other periodic allocation procedures, indirect activity allocation uses segments and cycles to define sender and receiver relationships. You define the processing methods for each segment. Different methods can occur together within a given segment. The costs are allocated under a secondary cost element from category 43. The cost element assignment is defaulted from the activity type master data for the cost center/activity type plan, and can be overwritten. Cost centers function as senders in indirect activity allocation. The receivers of an indirect activity allocation can be cost centers, WBS elements, internal orders, cost objects, or business processes. Depending on the the activity type cateogry, you can choose between two different allocation methods.

When you determine the total activity for the sender, use indirect activity allocation to distribute the planned activity quantities from the sender to the receiver based on specific keys. For activities that are to be planned on a sender object, use activity type category three (manual entry, indirect allocation). The corresponding segment must use the sender rule "Posted quantities". All receiver rules are valid here except "fixed quantities".

(C) SAP AG AC412 3-14

© SAP AG 2001


Indirect Activity Allocation in Planning Data (Category Two)

Cat. 2

Cycle definition:Derivation of sender quantity from:∑ of tracing factors

- Inversely calculated- Sender values: x per tracing factor

Distribution of the receiver quantities based on tracing factors

- Percentages- Fixed quantities- Planned statistical key figures- Planned costs- Planned activities- ...

1.1.




Cycle Flow:- allocation of planned activities

to sender and receiver3.3.

Sender activity and

receiver input areautomatically

planned

For activity types where the plan (output) quantities cannot be calculated or whose calculation is time-consuming, the R/3 System determines the activities using the following methods: The sender activity quantity is derived from the receiver tracing factors (with global or a weighted factor that is defined per sender) or from the corresponding entries in the segment definition (as a fixed sender or receiver quantity). This second form of indirect activity allocation uses activity type category two (indirect entry, indirect allocation). The given segment must either use the sender rule for inversely calculating quantities, and any receiver rule, or the identical sender and receiver rules for fixed quantities. If you use sender rule for inversely calculating the quantity, the sender-specific weighting factors mentioned above are calculated with the sender values function (Default Value = 1).

When you indirectly allocate activity in the planning data, the system determines the fixed and variable quantity portions according to the receiver category and its tracing factor in each segment. - If the receiver is a cost center, activity type or business process, all quantities are posted as variable - If the receiver is an order, cost object or WBS element, all quantities are posted as variable - In all other cases (for other receiver categories or other receiver tracing factors) the system posts all of the quantities as fixed.

(C) SAP AG AC412 3-15

If a price exists for a sender object, the costs are distributed in the same way as as they are during the valuation of activity-dependent activity input planning.

(C) SAP AG AC412 3-16

© SAP AG 2001

Cycle OverviewCycle Overview

Cycle I-IAA1

Validity 1.1.1998 - 31.12.2400

Executed

Segment RepairsSender rule Posted amountsPlanned value 100%

Selection criteria Cycle Information

Cycle overview Edit Goto Settings System Help

x Iteratively

Information on selected segment

Cycle Tree StructureEntries found

Controlling area 1000

Internal Activity Allocation

Plan cycles

I-IAA1

I-IAA2

I-IAA3

Repairs

Service

Telephone

Energy

General information

Receiver rule Variable portionsVariable portions Statist. key fig.Scaling Standard

Receiver

1999 ............. ............ ............... ......

PC Production

Chip Production

Customer Service

Sender

IterativeIterative-- Runtime analysisRuntime analysis-- Formal checkFormal check-- ChangesChanges-- Cycle run groupsCycle run groups-- Segment overviewSegment overview-- Previous executionsPrevious executions((documents)documents)

The cycle overview provides an overview of all cycles from one category, including all relevant segments. The cycles for the selected allocation are displayed in a structure tree. In each case, the segments are assigned one level lower in the hierarchy. On the Selection criteria tab strip, you specify the cycles and additional information to be displayed in the tree structure. On the Cycle information tab strip, you can display data for a particular cycle or segment. This provides information on the general data, the number of segments for the cycle, and the last time the cycle was run or reversed. For segments, you are provided with information on the segment definition and the sender.

If you want to process iteratively, activate the indicator in the cycle definition. The System also includes cyclical relationships in the cost center network (a receiver can also be a sender of costs).

The formal check function enables you to test an individual cycle prior to an update run. You can use the error log to correct faulty segements and iterative relationships (Customizing). For example, the system checks that the total of percentage rates adds up to 100%, and whether the fixed value rules are the same for both senders and receivers. Parallel processing of cycles saves a lot of time. To process cycles of one allocation type in parallel, you must assign them to different cycle run groups. You define the cycle run groups in the cycle header data. When you execute a cycle, you can start a consistency check. The system checks whether you are allowed to execute the selected cycles in parallel.

If you activated the runtime log, you can display this after processing by choosing Technical statistics

(C) SAP AG AC412 3-17

© SAP AG 1999

Plan Template Allocation

Sender activity andreceiver input areplanned automatically!



PrimaryCosts

StatisticalKey Figures

AdditionalSAP Data

ExternalSystems

Template

Functions

∫ ∑∞

= ∗

m

1mi

i

27

Ωπη

Activity Type

Activity Type

Cost CenterCost Center Activity Type

Template allocation is used to calculate the quantities that are consumed from each individual receiver cost center.

The costs are calculated by valuating the quantities with prices.

To calculate the required data, the template uses R/3 standard or user-defined functions. The templates make it possible to reference specific field contents and to apply complex algorithms using operative data from the R/3 System. To describe the allocation quantity in the plan, assumptions are usually made that estimate expected quantities based on this data.

Template allocation can be made to a cost center independent of the activity and/or depending on the activity.

A requirement for template allocation to a cost center is that a template must be assigned to the cost center. You make this assignment by entering a template in the master data of the cost center.

You can base the allocation on periods or fiscal years.

In addition to cost centers and cost center/activity types, the receiver objects for template allocations can be profitability segments, cost objects, and business processes.

(C) SAP AG AC412 3-18

© SAP AG 1999

Template Definition

TemplateTemplateObject ActivationType Plan: Variable

Quantity Factor

CCtr/AT 1000/1410

Plan:Fixed Qty

Function FunctionCondition

Template

∫ ∑∞

= ∗

m

1mi

i

27

Ωπη

Whichcost center/

activity type?

Under whatconditions?

Fixedallocationquantity?

Variableallocation

quantity factor?

Plan Template Allocation:When condition met, plan quantities are calculated based on template

A template is a dynamic tool that uses functions and formulas to calculate values, and that determines the result of Boolean expressions (true or false). It consists of a table (row/column) structure.

In the object column, you can enter an object yourself (such as cost center 1000 and activity type 1410) or you can have the system determine this information automatically during evaluation (for example, the cost center of a specific cost center category).

You can use it to set the value of an item to active or inactive, to define conditions that are checked during the evaluation or to set requirements for allocations.

In activity-independent template allocation, the variable quantity factor determines the planned sender output quantity by multiplying the output quantity of the receiver object with the variable factor. You can enter a constant value for the factor, or allow the system to calculate it automatically during the time of evaluation. The fixed planned quantities represent fixed consumption quantities that you enter as constant values or have the system calculate automatically during evaluation.

(C) SAP AG AC412 3-19

© SAP AG 1999

Advanced Planning Techniques: Plan Closing

Reconcile the internal network of activities manually or automatically

Assign the fixed costs of cost centers to activity types using plan cost splitting

Configure, execute, and analyze plan price calculation

Configure and use the cost component split


(C) SAP AG AC412 3-20

© SAP AG 2001

Information System: Reconciliation Reports

Reconciliation Reports:Plan ≠ Schedule?

Manual Plan Adjustment?

Fixed costs 1,000Var. prim.costs 400Planned acty: 40 hSched. acty. 50 h

Var. input 50 hVar. prim.costs 500Planned acty 30 kWhSched. acty. 20 kWh

Energy

Production

PlanningPlanning

Var. input 20 kWhVar. prim.costs 200Planned acty 80 MhSched. acty. 0 Mh

Maintenance

≠

Bottleneck!

Overcapacity!

No MRP in PP!

≠

≠

kWh

h

MAH

Each cost center plans its own activity output and the required activity input. This can result in differences between the plan data of the sender and receiver cost centers. For this reason you should execute plan reconciliation. The differences can result from overcapacities (planned activities exceed scheduled activities) or undercapacities (planned activities are less than scheduled activities).

To control the activity relationships across the entire enterprise, the R/3 System offers two standard reports:

Activity types: Reconciliation: Shows the planned and scheduled activities for each cost center. Variances are shown as percentages and as absolute values. The column for capacity allows you to determine how much you can manually increase the planned activity of a cost center.

Activity types: Receiver Plan: Shows which receiver cost centers have scheduled activities and how much higher or lower they are than the planned activity.

If needed, you can also adjust the planning manually to fit the activity relationship using the information in the report.

(C) SAP AG AC412 3-21

© SAP AG 1999

Automatic Plan Reconciliation



Plan reconciliationPlan reconciliation

Transfer of the scheduled activity:

100 MaH


Energy

Production

PlanningPlanning

Var. input 20 kWhVar. prim.costs 200Planned acty 80 MaHSched. acty. 0 MaH


Var. input 25 kWhVar. prim.costs 250Planned acty 100 MaHSched. acty. 100 MaH

Maintenance

PPPP

h

kWh

MAH

+5%

-16%

+25%

Automatic plan reconciliation is used to check and reconcile the internal activity flow. If Production Planning is active, you can transfer the planned activity for the production orders to the production cost centers. This approach normally results in differences between the activity quantity planned by the sender cost centers, and the activity scheduled by the receiver cost centers or production orders.

You can use plan reconciliation to automatically adjust all of the plan activity quantities from the sender to the scheduled quantities of the receiver. In the next step, the plan reconciliation adjusts the variable portion of activity-dependent primary costs and variable portion of activity-dependent activity inputs according the new plan activity. The plan reconciliation does not change activity-independent primary costs, activity-independent activity inputs, the fixed portions of activity-dependent activity inputs, or primary costs.

The plan reconciliation is executed iteratively. This means that recursive activity relationships between cost centers are taken into account. Recursive activity relationships occur, for example, when a cost center plans to consume activity from a cost center, to which it also provides activity.

Posting a plan reconciliation leads to an automatic adjustment of your planned activities and variable planned costs in the enterprise. If the indicator for plan quantity is set in an activity type, the planned activity quantity is not changed by the plan reconciliation, even if planning for the object is not intended to be reconciled.

(C) SAP AG AC412 3-22

© SAP AG 1999

ProductionProduction

120,000 fixed60,000 var.

540,000 fixed

Plan Cost Splitting

Plan activity qty10,000 h

Plan activity qty800 h

MachineHours

SetupHours

300,000 fixed360,000 var. OK

?

Activity-independent costs

Activity-dependent costs

If you want to allocate all plan costs to the activities, the planned costs not directly assigned (activity-independent planned costs) must be assigned to activity types. Here the question arises as to how the fixed costs of the cost center can be allocated to the activity types on a cause-effect basis.

Plan cost splitting assigns the activity-independent planned costs of a cost center to the individual activity types. The activity-independent costs need to be split up among the activity types before the price of the activity units can be calculated. The R/3 price calculation function automatically calculates the plan prices. The activity-independent costs become fixed costs of the price.

Although the plan price calculation function splits the plan costs automatically, you can also split the costs manually. This provides you with an overview of the costs debited to the activity types.

The plan costs can be split using two different methods.

(C) SAP AG AC412 3-23

© SAP AG 2001

SETH

MAH

SETH

MAH

540,000 fixed

Plan Cost Splitting: Methods

Equivalence numbers:- ... in planning/activity output:E.g. Machine hours "1" > 270,000/ MAH

Setup hours "1" > 270,000/ SETH

OR

Splitting structure:- Create in Customizing - Assign cost elements- Assign distribution rule. For example, the methods:

- Activity quantity / receiver- Capacity- Statistical key figure- Output- No splitting

- Assign cost center to splitting structure

ExecuteSplitting

Execute Splitting

Activity-IndependentCosts


Fair distribution of fixedcosts?

The simplest method of plan cost splitting is to use an equivalence number (default value = 1) in manual planning for each activity type. All planned activity-independent cost elements are split in accordance with the equivalence number.

If you want to assign different cost element groups to the activities (on the basis of the plan quantity or the activity types, for example), you can define a splitting structure. The splitting structure and the splitting rules establish a number of criteria that are used to assign activity-independent costs to activity types. A splitting structure contains one or more assignments in which you specify splitting rules for the corresponding cost element(s) or cost element groups. You can restrict the selection of cost elements or cost element groups, as well the activity types over which the costs are split.

Splitting methods are then assigned to the splitting rules. These methods specify how the costs are split. The methods provided in the standard R/3 System can be used to split the planned costs as described above.

In addition, you can use weighting indicators to control whether the tracing factors are weighted when the costs are split. You should set the indicator if the individual values of the tracing factor use different units of measure. If the Conversion indicator is active, these values are multiplied by the equivalence numbers of the activity types. This makes the different units of measure of the tracing factor values comparable.

(C) SAP AG AC412 3-24

© SAP AG 1999


Plan Cost Splitting: Result

h

120,000 fixed60,000 var.

SetupHours

300,000 fixed360,000 var.

MachineHours

Costs per activity type:

Acty.-dependent: 660,000Acty.-independent: 491,000∑ 1,150,000

Acty.-dependent: 180,000Acty.-independent: 49,000∑ 229,000

All costs are assignedto the activity types:

- Costs / activity- Requirement

for price calculation

540,000 fixed

Splittingby activity



Activity-IndependentCosts

Activity-dependent costs

If a splitting structure is created in Customizing and assigned to the cost center, the system uses that splitting structure to apportion the costs. Otherwise, it uses the equivalence number.

The advantage of the splitting structure is that the tracing factors can be determined automatically using the splitting rules and limited to cost elements or activity types, whereas changed equivalence numbers must be maintained manually.

Once plan cost splitting has been executed, all costs (those that were to be assigned to activity types) are assigned to activity types. This fulfills the requirements for price calculation and for complete target cost calculation.

(C) SAP AG AC412 3-25

© SAP AG 2001

Plan Price Calculation

2000 kWh

5000 kWh

SerH

MaH

kWh

RueH

Activity Output:

Planned Price Indicator:1: Plan costs / Plan acty or

2: Plan costs/ Capacity or

3: Manual price

20 SerH

100 SerH

200 MaH

50 RueH

50 S

erH 10 M

aH

Energy:Energy:Prim.costs:Prim.costs: 7,0007,000Sec.costs:Sec.costs:-- Service / SerH x Service / SerH x

Service:Service:Prim.costs:Prim.costs: 2,2002,200Sec.costs:Sec.costs:-- Energy/ kWh xEnergy/ kWh x-- Prod./ Mh xProd./ Mh x

Production:Production:Prim.costs:Prim.costs: 10,00010,000Sec.costs:Sec.costs:-- Energy/ kWh xEnergy/ kWh x-- SerH / MaH xSerH / MaH x

Planned prices can be calculated for every activity type of a cost center. Based on the plan activity flows between cost centers, the R/3 System calculates the activity price in an iterative process by dividing the plan costs by the plan activity.

As an alternative, you can also calculate the fixed portion of the price from the relationship between the plan costs and the capacity. This is useful when you don't want idle-capacity costs for the maximum activity quantity to influence product costing. For example, a cost center that supplies energy must be capable of supplying the maximum level of activity at any time -- even when the maximum level is not actually required. In this case, the fixed costs of supplying the activity should remain on the supplying cost center, since the full amount cannot be assigned directly to the product costs.

In the plan version, you can set up the determination method for the plan activity price calculation. You can choose between average activity price and periodic activity price.

If you have manually set prices in addition to iterative prices, you can set the indicator purely iterative in the version. This ensures that the prices calculated from your planning (a mixture of iterative and manual prices) are calculated using purely iterative methods. This means that an additional purely iterative price is calculated for all activity types on all cost centers. The manual prices are ignored. This enables you to see the overall effects of your manually planned prices on the activity prices.

(C) SAP AG AC412 3-26

© SAP AG 1999

Energy:Energy:Wages:Wages:7,0007,000Material:Material:10,00010,000Depr.:Depr.: 5,0005,000Accruals:Accruals:3,0003,000∑∑ 25,00025,000

Cost Component Split

MaH

1 EUR/kWh

COCO--PCPC

COCO--PAPA

Cost Components

25,00

0 kWh

Cost ComponentsPersonnel 17,000 (26%)Material 20,000 (31%)Assets 15,000 (23%)Accruals 13,000 (20%)∑ 65,000

Cost ComponentsPersonnel 7,000 (28%)Material 10,000 (40%)Assets 5,000 (25%)Accruals 3,000 (12%)∑ 25,000

Production:Production:WagesWages 10,00010,000MaterialMaterial 10,00010,000Depr. Depr. 10,00010,000AccrualAccrual 10,00010,000Sec.costSec.cost 25,00025,000∑∑ 65,00065,000

Price calculations with a cost component split (breakdown of costs into cost components) enhance the transparency of the prices calculated iteratively by the R/3 System. For example, you can see how much of the price is material costs and how much is wages. When plan activities are allocated, the cost components of the sender are visible on the receiver.

Before you can see the cost components of the prices, you must first do the following: Create a cost component structure: In the version, you specify the cost component structure you want to use for price calculation. If no cost component structure is specified in the version, the prices will not be broken down into cost components.

Assign cost components to cost component structure: A cost component contains all the costs of the range of cost elements assigned to it. You assign cost components to the cost component structure based on your organizational requirements.

You can use the detailed price information (cost components) in Product Cost Planning (CO-PC). The cost elements in Cost Center Accounting are assigned to the cost components in Product Cost Planning by means of a cost component structure in Product Cost Planning. Transferring the cost information in cost estimates from Product Cost Planning to Profitability Analysis (CO-PA) enables the cost components in those cost estimates to be analyzed in CO-PA as well.

(C) SAP AG AC412 3-27

© SAP AG 1999

COCO--PCPC

COCO--PAPA

Cost Component Split: Optional Switching Structure

MaH

1 EUR/kWh

Cost Components

xxxxxxxxxxxxxxxxxxxxxxxxxx

Energy 25,000

Cost Components:Energy 25,000 / 100%

Production:Production:..................Energy 25,000Energy 25,000

Energy:Energy:Wages:Wages:7,0007,000Material:Material:10,00010,000Depr.:Depr.: 5,0005,000Accruals:Accruals:3,000 3,000 ∑∑ 25,00025,000

25,000 kWh

You have the option of deactivating the cost component split for particular cost centers/activity types.

If you want to use a different component split for the sender than for the receivers, create a switching structure for your cost component structure. The switching structure determines which sender cost components go into which receiver cost components. You assign a switching structure to the combination of cost center/activity type in activity type planning.

Example: The Energy cost center allocates activity to multiple production cost centers. All costs from the Energy cost center (labor and materials) flow into the receiver cost component Energy.

The switching structure Energy is assigned to the cost component structure IE. The switching structure contains the following information:

When activities are allocated, labor costs assigned to cost component 2 (Personnel) flow to target cost component 4 (Energy).

Materials assigned to sender cost component 1 (Raw materials) also flow to cost component 4 (Energy).

The target cost component Energy contains costs from the cost components Personnel and Raw materials.

(C) SAP AG AC412 3-28

© SAP AG 2001

Typical Sequence for Planning

Plan statistical key figures

Plan activity output

Plan cost elements (activity-dependent / -independent)

Plan activity input (activity-dependent / -independent)

Copy planning

Plan indirect activity allocation

Plan template allocation

Plan reconciliation

(Plan cost splitting)

Plan price calculation

Lock planning

Cost center planning is different in almost every organization. The type of industry, organization structures, and management areas are all factors that affect planning. When defining the sequence of planning activities, SAP recommends certain rules. A sample scenario might include the following points:

You can use statistical key figures to calculate cost center characteristics, and to support cycle allocations and the splitting as tracing factors.

You begin with activity planning and tracing factor planning, because both plan activity quantities and plan capacity influence the total volume of costs.

At the completion of activity planning, you know the required volume of activity quantities and can plan primary costs, which can be either activity independent or dependent.

The next step in the planning scenario is secondary cost planning. You plan secondary costs manually (activity inputs), or automatically (using plan assessment or indirect activity allocation).

At the end of the planning process, you can use plan reconciliation to check and reconcile internal activity exchanges. Activity price calculation is the final stage in planning.

The planning process is not a one-off event, rather an iterative process which goes through several cycles. Therefore you can save plan data in different versions.

(C) SAP AG AC412 3-29

© SAP AG 1999

Explain the difference between various planning scenarios and analyze their results

Use the different methods of manual and automatic cost and activity planning

Perform the final plan activities such as plan reconciliation, plan cost splitting, and plan price calculation


Advanced Planning Techniques:Unit Summary

(C) SAP AG AC412 3-30

Exercises

Unit: Advanced Planning Methods Topic: Manual Planning


• Plan activity output

• Plan cost elements or activity input

• Distinguish between activity-dependent and activity-independent (input) planning

• Use the different methods of manual cost planning and activity planning for different purposes.

You want to plan costs for your enterprise manually. Therefore you manually plan for both production cost centers (chip and PC) and for the three service cost centers (quality assurance, repairs and energy) - the output first, and then the input.

You want activity-based planning, so you assign the activity types to your cost centers, which you use later to monitor cost effectiveness.

Then you plan the primary costs of the cost centers. These can be fixed costs of the cost center, or, fixed or variable costs that differ from the plan activity of your activity types.

Likewise, for the input of internal activities, such as internal energy supply, you manually plan the planned input quantity on the receivers.

You need to follow the instructions for this exercise on manual planning as exactly as possible.

To ensure clarity, the following units provide results that should match yours if the all steps have been carried out correctly.

1 Planning preparation: In the following, ensure that you plan for all periods (1-12) of the current fiscal year.

1-1 Choose the SAPALL planner profile and save it in your user master.

2 Because you want to use activity type category 1 for all cost centers, you plan all cost center activity types manually.

(C) SAP AG AC412 3-31

Plan the activity output for the current fiscal year by going to the single values (using the form-base) from the initial screen of your cost center group H_TECH## and your activity type group AT##.

Scroll through the cost centers. Why does the system not display all the possible activity types of group AT## for your five cost centers?.

Remain on the planning screen.

2-1 Your energy cost center (ENER##) plans to supply 1,500,000 kWh. The capacity is 3,000,000 kWh. The annual activity is to be evenly distributed among the periods (distribution key=DK 1). The price is to later be automatically calculated, based on the capacity (plan price indicator=PI 2). The capacity reflects the maximum possible activity quantity, which is set higher than the plan.

Leave any other rows empty and remain on the planning screen.

2-2 Your quality checks (QUAL##) plan 1,500 inspection hours (with a capacity of 1,800 hours). Later, the price is to be automatically calculated, based on plan activity (PI 1). The activity is to be evenly distributed among the periods (DK 1).


2-3 Your repair cost center (REP##) plans 1,200 repair hours (with a capacity of 1,500 hours). The price is to be automatically calculated based on planned activities (PI 1). The activity is to be evenly distributed among the periods (DK 1).


2-4 Your production cost center PC (PC##) plans 12,000 machine hours and 1,200 setup hours. Later, both prices are to be automatically calculated based on planned activities (each PI 1). The activities are to be evenly distributed among the periods. Capacity is not planned.


2-5 Your production cost center Chip (CHIP##) is also to provide machine hours (MAH##). Later, the price is to be automatically calculated, based on plan activity (PI 1).

Go from the MAH## row to the period screen since you want to plan different activity quantities for each period. The planned activity from January to May and then from October to December is to be 350 h per month, and in the remaining four summer months only 200 h per month. Leave capacity empty. The total planned activity for the year is 3,600 h (overview screen). Although the cost center output fluctuates periodically, you want to work with constant yearly prices (average prices). Set the corresponding indicator.

(C) SAP AG AC412 3-32

Set-up hours are not planned here. Therefore, leave row SETH## empty.

Check all your values again, and post your total plan value.

2-6 Compare all allocation control indicators for the planned activities for your cost centers (H_TECH##) and activity types (AT##) with the solution. The “control indicators” layout in activity planning shows you the indicators that are set in the planning, and that are important for later activities (for example, allowed allocation methods and actual price indicators). This time, choose free entry.

Check your entries carefully, by scrolling through the cost centers (make any necessary changes).

C A P A Pl A

E E 2 6 1 5

Q Q 1 6 1 3

R R 1 6 1

(C) SAP AG AC412 3-33

P M 1 6 1

P S 1 6 1

C M 1 6 1

3 Cost Element Planning

3-1 Plan the salary costs and the room rental for your cost center group (H_TECH##) as fixed costs (that is, activity-independent). Page to layout 1-101 for this.

To start with, choose the complete current fiscal year (form-based entry) and your cost center group H_TECH## and the cost element group FIX412. Leave field activity types/groups empty.

C Cost Element

Fixe DK

(C) SAP AG AC412 3-34

E 430000 Salaries

60,0

470000 Room costs

18,0

Q 430000 Salaries

120,

470000 Room costs

24,0

R 430000 Salaries

108,

470000 Room costs

12,0

P 430000 Salaries

480,

470000 Room

60,0

(C) SAP AG AC412 3-35

costs

C 430000 Salaries

120,

470000 Room costs

36,0

All fixed planned costs should be distributed over the periods evenly (distribution key 1). Check the data again and save your entries.

3-2 Now plan the primary costs for your cost center, which you can uniquely assign (activity-dependent) to specific activity types. These can contain fixed and variable portions. Where appropriate, plan for the entire current fiscal year. Remain in the same layout 1-101. In contrast to activity-independent planning, you fill in the "Activity type" field in the initial screen.

3-2-1 Plan the activity-dependent costs for your quality cost center as follows: In the initial screen, choose (form-based) cost center QUAL##, activity type QUAH## and the cost element interval 415000 to 420000. The distribution key for each is 1.

C A Cost Element Fixe Plan

(C) SAP AG AC412 3-36

Q Q 415000 External activities

- 90,00

Q 420000 Wages 60,0 30,00

Save your entries.

3-2-2 Plan the activity-dependent costs for your repair cost center as follows: In the initial screen, choose (form-based) cost center REP##, activity type REPH##, and cost element 415100. The distribution key is 1.

For the purchases of planned external activities (415100), which you plan for 1,200 h for 100,- UNI per hour, enter for the variable cost of 120,000 the corresponding variable consumption of 1,200 h. Do not forget the unit h, and the quantity indicators.

C C F V F V Unit

(C) SAP AG AC412 3-37

R 4 - 1 - 1

Save your entries.

3-2-3 Plan the corresponding activity-dependent costs for the energy cost center (ENER##) as follows. The distribution key for each is 1.

C C Fixe Variable Planned Costs

(C) SAP AG AC412 3-38

E 4 - 18,000

4 24,0 -

4 - 180,000

(C) SAP AG AC412 3-39

Save your entries.

3-2-4 Plan the corresponding activity dependent costs for the PC production (PC##), activity dependent (activity type group AT##) in cost element interval 420000 – 489000 (distribution key for each 1).

Cost Center Activity Cost Element

Fixed Planned Costs

DK Variable Planned Costs

DK

P 4 240, 300,000

(C) SAP AG AC412 3-40

4 60,0 60,000

4 120, 60,000

Save your entries.

3-2-5 Plan the activity independent costs for the chip production (CHIP## with distribution key 1).

C C Fix Variable Planned Cos

(C) SAP AG AC412 3-41

ts

C 4 240 150,000

4 12, 120,000

Save your entries.

(C) SAP AG AC412 3-42

3-3 Now manually plan the secondary costs / activity inputs of both production cost centers. To do this, scroll to layout 1-102 Activity Inputs. As before, plan using the distribution key 1 for the entire year.

3-3-1 Production PC## requires (activity-dependent) activity inputs from cost center group H_SERV## (repairs, quantity assurance and energy) for its activity MAH##. For the sender activity types, enter activity type group AT##. Choose form-based entry and distribution key 1 for each one.

C Fi Va

P E - 1,2

P Q - 1,2

P R - 1,2

(C) SAP AG AC412 3-43

Save your entries.

3-3-2 Chip production CHIP## also requires (activity-dependent) secondary costs of cost center group H_SERV## with sender activity type group AT## for its activity MAH##. Choose form-based entry and distribution key 1 for each one.

C S Fi Va

C E - 30

Q - 60

R - -

Save your entries.

(C) SAP AG AC412 3-44

4 Check your planned costs by going to the information system in the plan/actual comparison for your cost center group H_TECH## and the entire current year. Go to the variation in each cost center and note the planned debit and the planned activity for each.

C Planned Debit

Activi

p

Planned Activity

E ENH#

R REPH

Q QUA

P MAH

“

SETH

C MAH

(C) SAP AG AC412 3-45

Compare these with the solutions.

(C) SAP AG AC412 3-46

Exercises

Unit: Advanced Planning Methods Topic: Plan Closing


Explain and distinguish between the various concepts of automatic activity allocation in planning.

Automatically or manually reconcile the internal network of activities.

Assign the fixed costs of cost centers to activity types using plan cost splitting.

Configure and use the plan price calculation.

Configure and use cost component splitting in Overhead Controlling.

After manual planning is complete, discuss the various concepts of automatic activity allocation in planning. However, you have decided to use these methods (such as indirect activity allocation or template allocation) only in the actual data because this will save you the most amount of effort.

To complete plan closing, you initially reconcile the plan to check for bottlenecks and overcapacity in the enterprise.

Afterwards, you want to assign the (activity-independent) fixed planned costs to your activity types. You decide on a splitting structure that distributes all (activity-independent) planned costs according to the activity quantities.

You have now fulfilled the prerequisites for calculating the prices in your enterprise.

You want to determine the components of your prices using the cost component split. These prices can be forwarded to other modules (CO-PC and CO-PA).

5 Optional text task: You saw the manual planning of activity input in the last exercise. Which methods are available to you for the automatic allocation of activities in the planning?

To repeat these functions, complete the following table and compare it with the solutions. For each, you need to know the following:

- Which object in this plan allocation can be the sender (for example, cost center or order)?

(C) SAP AG AC412 3-47

- Which allocation tool can be used for this plan allocation (for example, overhead structure)?

- Which tracing factors can be used to distribute the sender quantities?

Method Sender Alloc. Tool Tracing Factor

Assessment Cost Center Cycle Receiver rule in cycle

Indirect activity allocation (posted qty)

Indirect activity allocation (inverse)

Template allocation

6 Plan reconciliation

6-1 Check report “Activity Types: Reconciliation” for the planned and scheduled activities for the current fiscal year in your sender cost center (cost center group H_SERV##).

Cost Center/Activity Type

Scheduled Activity

Plan Activity Variances

(Scheduled<> Plan)

Capacity

ENER## / ENH##

QUAL## / QUAH##

REP## / REPH##

How do you check your activity network and how can you reconcile it?

6-2 Understanding the concepts: What would be the consequences for a price calculation if the planning were not reconciled and had the following combination:

(C) SAP AG AC412 3-48

Scheduled Activity > Plan Activity?

Think about this situation carefully (you will find notes in the settings for price calculation) or compare your answer with the solutions.

6-3 Go to the Planning Overview report for your cost center QUAL## (since this does not have a reconciled plan), and check the total costs and the activity quantities planned there.

Cost Center Ind. Costs Dep. Costs

/QUAH##)

Plan Activity

Fixed Variable Fixed Variable (total)

QUAL##

6-4 Execute the plan reconciliation for your cost center group H_TECH## only for the current fiscal year, in the Test run and without business processes.

For which cost center does the system recommend a plan adjustment, and how much?

Cost center: _____________ Changes: ___________

Accept the automatic plan adjustment by posting the results of the plan reconciliation for your cost centers only.

6-5 In the planning overview compare the costs on your cost center QUAL## with the results of exercise 2-3.

Which costs have changed due to the plan reconciliation?

Cost Center Ind. Costs Dep. Costs

/QUAH##)

Plan Activity


QUAL##

Tasks 7 and 8 do not need to be done if you do the optional exercises.

(C) SAP AG AC412 3-49

7 Plan cost splitting

Due to the lock logic, the instructor has now assigned your cost center PC## to splitting structure AC. This allows the system to split the activity-independent costs of this cost center between activity types MAH## and SETH##, using the planned activity quantity.

8 The planned price calculation is also now posted by the instructor.

(C) SAP AG AC412 3-50

Optional Exercises

Unit: Advanced Planning Methods Topic: Plan Closing and Differentiated Planning Analysis

These exercises are not part of the standard course.

They also include differentiated allocations and analyses to increase your understanding of planning.

For illustration purposes, several results are given in the solutions, which you should get if you carry out all the above tasks correctly.

Even if some of your results are different, you will be able to learn a great deal from the exercises.

9 After your instructor has assigned your cost center PC## to splitting structure AC, you prepare the splitting of your activity-independent plan costs between the activity types:

9-1 Examine the splitting structure “AC”. Which cost elements are part of the splitting?

Cost elements:

Remain in the splitting structure.

9-2 Which method is used for the splitting?

Method:

9-3 Split the plan costs only for your cost center PC## as a test run. What ratio is used to split the activity-independent plan costs of cost center PC## between the MAH## and SETH## activities?

Compare the proportions with the specified plan activity.

(C) SAP AG AC412 3-51

Plan Activity Cost Plan Activity

MAH## 12,000 h

SETH## 1,200 h

When the proportions of the split costs reflect those of your plan activities, post the split in an UPDATE RUN.

10 Plan price calculation

10-1 View the settings for the price calculation in customizing. Which method is used for the price calculation in the plan for version 0?

Method: ____________________

Remain in the settings for the version.

10-2 Think back to the exercises for manual planning. Which one of your cost centers/activity types ignores the “Periodic Price” method?

(Review the “Activity output/prices” planning for your cost center group H_TECH## and all activity types [*]. )

Cost Center/Activity Type: ____________ Method: ________________

10-3 To which cost component structure for cost component splits is the price calculation in version 0 assigned?

Cost component structure:__________________

10-4 Examine the corresponding cost component structure. Which cost element intervals are assigned to the “External activities” component in the chart of accounts INT?

Component Cost elements:

1.)

2.)

(C) SAP AG AC412 3-52


11-1 Calculate the plan price in a test run for the current fiscal year and your cost center group H_TECH## - without business processes. In the following table, enter the calculated price and base (capacity or activity). Choose price unit 1 and the display variant total/variable for the illustration. Enter the price in period 1 in the following table.

Cost Center Activity Type

Overall Price

Variable Price

Base

(from plan price indicator)

CHIP MAH##

ENER## ENH##

PC## MAH##

SETH##

QUAL## QUAH##

REP## REPH##

Now post the result and remain in the results screen for the price calculation.

11-2 Go to the period view of your price MAH## for cost center CHIP##. What do you notice?

Remain in the results screen for price calculation.

11-3 Go to the cost component split for cost center PC## and activity type MAH##. What costs occur in each period that contains component 60 external activities, and cost elements 451000 – 419000 and 451000 – 459000

Costs in component 60 (per period): _______________________

11-4 Open an new session and go to the “Plan/Actual Variance” report for period 1 and cost center PC## only in the information system. What costs are planned for intervals 415000 – 419000 and 451000 – 459000 for period 1? Compare this with the costs in component 60 for activity type MAH## (PC##) in period 1. Why is this different?

(C) SAP AG AC412 3-53

11-5 Examine the balance of each of your cost centers in the plan in the Plan/Actual Comparison report for group H_TECH##. Call up the report for version 0 and the entire current fiscal year.

Cost Center Plan Balance (periods 1-12) Comments on the Balance

CHIP##

ENER##

PC##

QUAL##

REP##

Not all cost centers in the plan have been completely credited. Consider the possible causes and check them using the solutions.

11-6 Analyze the price report for your cost center group H_TECH## with activity type group AT## for all periods of the fiscal year. Set the indicator display all prices and display in price unit 1. What additional information is provided if the indicator purely iterative is set in the version? In particular, examine the MAH## price for the CHIP## cost center in the period view as compared to both available price indicators (PI 1 <> PI 4).

(C) SAP AG AC412 3-54

Solutions

Unit: Advanced Planning Methods Topic: Manual Planning

You need to follow the instructions for this exercise on manual planning as exactly as possible.

To ensure clarity, the following units provide results that should match yours if the all steps have been carried out correctly.

1-1 Planning preparation

CCA: Planning > Set planner profile:

SAPALL

Save in the user master record

Enter

2 Activity output

Not every activity type is allowed for all cost center types. You limited each activity type in the master data to certain cost center types. This is why a production cost center (for example, PC##) can only provide activity types MAH## and SETH##, but not REPH## (repair hours).

CCA: Planning > Activity output / prices

Plan version: 0

Time period: 1-12 current year


Activity type group: AT##

Entry: Form-based

Overview Remain on the planning screen.

2-1 Activity output energy cost center (ENER##)

Scroll to cost center ENER##:

(C) SAP AG AC412 3-55

In row ENH##

Plan activity: 1,500,000 kWh Distribution key (DK): 1 Capacity: 3,000,000 kWh DK: 1 Plan Plan price indicator (PPI):2


2-2 Activity output quality check (QUAL##)

Scroll to cost center QUAL##:

in row QUAH##

Plan activity: 1,500 h DK 1 Capacity: 1,800 h DK 1 PPI: 1


2-3 Activity output repair cost center (REP##)

Scroll to cost center REP##:

In row REPH##

Plan activity: 1,200 h DK: 1 Capacity: 1,500 h DK: 1 PPI: 1 Leave any other rows empty and remain on the planning screen.

2-4 Activity output production cost center PC (PC##)

Scroll to cost center PC##:

in row MAH# Plan activity: 12,000 h DK: 1 PPI: 1

in row SETH## Plan activity: 1,200 h DK: 1 PPI: 1 Leave any other rows empty and remain on the planning screen.

2-5 Activity output production cost center chip (CHIP##)

Scroll to cost center CHIP##:

Select row MAH##

Go to the period screen.

In the period screen enter the following planned activities:

(C) SAP AG AC412 3-56

Jan – May and Oct – Dec.: 350 h each

Jun – Sep: 200 h each

Go to the overview screen again: Planned activity = 3,600 h

DK: 0 (=manual) was automatically set.

Set the indicator for average prices in the row for MAH##.

Price indicator: 1 Set-up hours are not planned here. Therefore, leave row SETH## empty.

Check all your values again, and post your planning.

2-6 Allocation-related control indicators for the planned activities

CCA: Planning > Activity output / prices

Scroll to the layout: 1-204 control indicators

Version: 0

Time period: Total for current fiscal year


Activity type group: AT##

Free entry

Overview screen: Compare these with the solutions.

Check your entries carefully, by scrolling through the cost centers (make any necessary changes).


Price ind. (PI - Plan)

Price ind. (PI - Actl)

AllocCostElem.

A Cat(plan) Cat

(Act)

ENER## ENH## 2 6 639200 1 5

QUAL## QUAH## 1 5 632000 1 3

REP## REPH## 1 5 615000 1

PC## MAH## 1 5 620000 1

PC## SETH## 1 5 613000 1

CHIP## MAH## 1 5 620000 X 1

(C) SAP AG AC412 3-57

* Any additional rows that are displayed, and have cost elements and activity type categories that are ready for input are not planned.

3 Cost element planning

3-1 Cost Center Group (H_TECH##)

CCA: Planning > Cost elements/activity inputs

Version 0



Activity Types/Groups -

Cost Element Group: FIX412

Entry: Form-based

Page to the corresponding cost centers and make the following entries:

Cost Center Cost Element Fixed Planned Costs

DK

ENER## 430000 Salaries 60,000 1

470000 Room costs 18,000 1

QUAL## 430000 Salaries 120,000 1

470000 Room costs 24,000 1

REP## 430000 Salaries 108,000 1

470000 Room costs 12,000 1

PC## 430000 Salaries 480,000 1

470000 Room costs 60,000 1

CHIP## 430000 Salaries 120,000 1

470000 Room costs 36,000 1

Check the data again and save your entries.

3-2 Activity-dependent planning

3-2-1 Activity-dependent costs of the quality cost center (QUAL##)


(C) SAP AG AC412 3-58

Layout: 1-101

Plan version 0


Cost center: QUAL##

Activity Type: QUAH##

Cost elements: 415000 to 420000

Entry: Form-based

Overview

Cost Center Acty Cost Element Fixed Planned Costs

Variable Planned Costs

QUAL## QUAH## 415000 External activities

- 90,000

QUAH## 420000 Wages 60,000 30,000

All planned distribution keys should be set to 1.

Save your entries. 3-2-2 Activity dependent costs of the repair cost center REP##


Layout: 1-101

Version: 0


Cost center: REP##

Activity Type: REPH##

Cost element 415100

Entry: Form-based

Overview

CCtr Acty Cost Element

Fixed Planned Costs


Fixed Cons.

Variable Cons.

Unit M

REP## REPH## 415100 External activity

- 120,000 - 1,200 h X

Do not forget the unit h and the quantity indicator that calls up a warning message during FI postings for account assignments of quantities.

Save your entries.

(C) SAP AG AC412 3-59

3-2-3 Activity-dependent costs from the energy cost center (ENER##)


Version: 0


Cost center: ENER##

Activity Type: ENH##


Entry: Form-based

Overview

Cost Center Activity Cost Elem Fixed Planned Costs


DK

ENER## ENH## 404000 Spares

- 18,000 1

ENH## 416100 Energy (base/fix. charge)

24,000 1 -

ENH## 416200 Energy (use/var. charge)

- 1 180,000 1

Save your entries.

3-2-4 Activity dependent costs for PC production (PC##)


Version: 0


Cost center: PC##

Activity Type: MAH## to SETH##


Entry: Form-based

Overview

Cost Center Activity Cost Element

Fixed Planned Costs


DK

(C) SAP AG AC412 3-60

PC## MAH## 420000 Wages

240,000 1 300,000 1

MAH## 489000 Accrued costs

60,000 1 60,000 1

SETH## 420000 Wages

120,000 1 60,000 1

Save your entries.

3-2-5 Activity dependent costs for chip production (CHIP##)


Plan version: 0


Cost center: CHIP##

Activity Type: MAH##


Entry: Form-based

Overview

Cost Center Acty Cost Element

Fixed Planned Costs


DK

CHIP## MAH## 420000 Wages

240,000 1 150,000 1

MAH## 489000 Accrued costs

12,000 1 120,000 1

Save your entries.

3-3 Activity input for both production cost centers


Scroll to the layout: 1-102, activity inputs

Plan version 0


3-3-1 Activity input for production PC##

(C) SAP AG AC412 3-61

Cost center: PC##


SE – Cost center group: H_SERV##

SE- Activity type group: AT##

Entry: Form-based

Overview

Cost Center Activity SE-CCtr SE-AT Fixed Consumption

Variable Consumption

Unit

PC## MAH## ENER## ENH## - 1,200,000 kWh

PC## MAH## QUAL## QUAH## - 1,200 H

PC## MAH## REP## REPH## - 1,200 H

Ensure that all distribution keys are set to 1, and save your entries.

3-3-2 Activity input for chip production (CHIP##)

Cost center: CHIP##


SE – Cost center group: H_SERV##

SE- Activity type group: AT##

Entry: Form-based

Overview

Cost Center Activity SE-CCtr SE-AT Fixed Consumption

Variable Consumption

Unit

CHIP## MAH## ENER## ENH## - 300,000 kWh

MAH## QUAL## QUAH## - 600 H

MAH## REP## REPH## - -

Ensure that all distribution keys are set to 1, and save your entries.

4 Plan/actual Comparison for your cost center group H_TECH##:

CCA: Infosystem > Reports for cost center accounting > Plan/Actual Comparison:

Cost Centers: Actual/plan variance

Fiscal year: current year

Periods: 1-12

Plan version: 0

(C) SAP AG AC412 3-62


Go to “Variation” in the single value

Cost Center Planned Debit Activity Types Planned Activity

ENER## 300,000 ENH## 1,500,000 kWh

REP## 240,000 REPH## 1,200 h

QUAL## 324,000 QUAH## 1,500 h

PC## 1,380,000 MAH## 12,000 h

SETH## 1,200 h

CHIP## 678,000 MAH## 3,600 h

(C) SAP AG AC412 3-63

Solutions

Unit: Advanced Planning Methods Topic: Plan Closing

5 Optional text task Comparison of methods for automatic allocation of activities in the plan.

Method Sender Alloc. Tool Tracing Factor

Assessment Cost center/Business Process

Cycle Receiver rule in cycle

Indirect acty. alloc. (posted qty.)

Cost Center/Activity Type, category 3


Indirect acty. alloc. (inverse)

Cost Center/Activity Type, category 2


Template allocation Cost center or business process

Template Variable functions and tracing factors in the template

6 Plan reconciliation

For the purpose of illustration, results are provided in the solutions, which you should also get if you do all the above tasks correctly.


6-1 The Activity Types report: Reconciliation QUAL##

CCA: Information System > Reports for Cost Center Accounting > Planning Reports > Activity types: Plan reconciliation


Cost center group: H_SERV##

(C) SAP AG AC412 3-64

Execute

Cost Center/Activity Type

Scheduled Activity

Plan Activity Variances

(Scheduled<> Plan)

Capacity

ENER## / ENH##

1,500,000 kWh 1,500,000 kWh - 3,000,000 kWh

QUAL## / QUAH##

1,800 h 1,500 h 20 % 1,800 h

REP## / REPH##

1,200 h 1,200 h - 1,500 h

On the Quality Assurance cost center, you have a bottleneck because 20% more activity is be required than the cost center has planned as activity output.

You can now reconcile the plan manually (decentralized plan change by the cost center manager) or use automatic plan reconciliation.

6-2 Understanding the concepts: Scheduled Activity > Plan Activity?

The plan price calculation would trigger an error message because the plan prices would not exactly reflect all planned costs (it is possible to determine the tolerance in the settings for price calculations).

Example:

Sender cost center: 10,000 planned costs at 100 h plan activity = 100 / h.

If 120 h (receiver cost center) have been scheduled, 12,000 in planned costs are sent to the receiver via the price calculation, although only 10,000 in planned costs exist.

6-3 Planning overview of cost center QUAL##

CCA: Information System > Reports for Cost Center Accounting > Planning reports > Planning overview:


Cost center: QUAL##

Execute

Cost Center Ind. Costs Dependent Costs

(QUAH##)

Plan activity

(C) SAP AG AC412 3-65


QUAL## 144,000 -

(independent are always

fixed)

60,000 120,000 1,500 h

6-4 Plan reconciliation: only for cost center group H_TECH##

CCA: Planning > Planning aids > Plan reconciliation:


No business process

Periods 1 – 12 in current year

TEST RUN

Cost Center QUAL## New plan activity 1,800 h (+ 300 h or 20%)

Accept the automatic plan adjustment by posting the results of the plan reconciliation for your cost center group.

6-5 Planning overview of cost center QUAL## (according to plan reconciliation)

CCA: Information System > Reports for Cost Center Accounting > Planning reports > Planning overview:


Cost center: QUAL##

Execute

Cost Center Ind. Costs Dependent Costs

(QUAH##)

Plan Activity


QUAL## 144,000 -

(independent are always

fixed)

60,000 144,000

(+ 20 %)

1,800 h

(+20 %)

(C) SAP AG AC412 3-66

The plan activity and the variable costs were each increased by 20% (activity-dependent variable costs from 120,000 to 144,000).

Variable activity input (or quantity consumption) would likewise have been increased by 20% , but does not exist here.

Exercises 7 and 8 do not apply if you do the optional exercises.


Due to the lock logic, the instructor now assigns your cost center PC## to splitting structure AC. This allows the system to split the activity-independent costs using the planned activity quantity (MAH## and SETH##).

8 The planned price calculation is also now posted by the instructor.

(C) SAP AG AC412 3-67

Solutions: Optional Exercises

Unit: Advanced Planning Methods Topic: Plan Closing and Differentiated Planning Analysis

These exercises are not part of the standard course.

They contain additional differentiated allocations and detailed questions to increase your general understanding of planning.

For illustration purposes, several results are given in the solutions, which you should get if you carry out all the above tasks correctly.



9-1 Cost elements in the splitting structure AC

IMG: Controlling > Cost Center Accounting > Actual Postings > Period-End Closing > Activity Allocation > Splitting > Define Splitting Structure > Maintain Splitting Structure

Splitting structure AC > Assignments > Selections for The Assignment

Cost elements: 400000 – 699999

Remain in the splitting structure.

9-2 Splitting method structure AC

IMG: Controlling > Cost Center Accounting > Actual Postings > Period-End Closing > Activity Allocation > Splitting > Define Splitting Structure > Maintain Splitting Structure

Splitting structure AC > Assignment 10: Rule AC

Splitting rule AC. Method 12 = Activity quantity

9-3 Plan cost splitting for cost center PC##

(C) SAP AG AC412 3-68

CCA: Planning > Allocations > Splitting

Cost center: PC##

Version: 0


TEST RUN

Plan Activity Cost Plan Activity

MAH## ~ 490,000 10,000 h

SETH## ~ 49,000 1,000 h

The same proportions as the plan activity. Splitting in an update run.


10-1 Methods for price calculation in the plan in version 0

IMG: Controlling > General Controlling > Organization > Maintain versions

Version: 0 (select)

Settings per fiscal year (level 5)

Current year Double click

Methods for price calculation in the plan: Periodic price Remain in the settings for the version.

10-2 Cost center that does not calculate your price as a periodic price:

Cost center CHIP## with price MAH## calculates the price as an average yearly price. The average price indicator is set during planning.

Reason: The cost center has fluctuating periodic activities (low production in the summer). However, the prices should be held constant for the entire year.

10-3 Cost component structure for cost component split

IMG: Controlling > General Controlling > Organization > Maintain versions

Version: 0 (select)

Settings per fiscal year (level 5)

(C) SAP AG AC412 3-69

Current year Double-click

Cost component structure IE provides the components of the price calculation.

10-4 Component “external activity”

IMG: Controlling > Cost Center Accounting > Planning > Allocations > Activity Allocations > Price Calculation > Settings for Cost Component Split > Define Cost Component Structure:

IE: Select

Assignment: cost component - cost element interval

Chart of Accounts: INT

Component 060 external acty. Cost elements:

1.) 415000 – 419000

2.) 451000 – 459000


11-1 Price calculation for cost center group H_TECH##

CCA: Planning > Allocations > Price calculation:


No business processes

All periods in the current fiscal year

UPDATE RUN

Execute

Edit > Display > Price > Price unit 1

Edit > Display > Total/variable values


Overall Price

Variable Price

Base

(from PI)

CHIP## MAH## 234.00 99.00 Plan activity

ENER## ENH## 0.17 0.13 Capacity

PC## MAH## 152.00 61.00 Plan activity

(C) SAP AG AC412 3-70

SETH## 191.00 50.00 Plan activity

QUAL## QUAH## 193.00 80.00 Plan activity

REP## REPH## 200.00 100.00 Plan activity

(Given prices are rounded)

Remain in the results screen.

11-2 Period view of price MAH## of cost center CHIP##.

In price results

select CHIP## with MAH##

Go to: Periods The price remains constant, although different activity quantities occur in each period (=average price).

Remain in the results screen for price calculation.

11-3 Cost center PC## and activity type MAH##: Cost component split.

In the price result

Select row PC## / MAH##

Go to: Components Cost component 60 external activities contains about 28,800 costs in each period, most of which is variable.

11-4 Plan/actual variance for period 1 and cost center PC##

System → Create session:

CCA: Infosystem > Reports for cost center accounting > Actual/Plan Comparison:

Actual/Plan Variance

Cost center: PC##

Period: 1

Execute

No cost elements from interval 415000 – 419000 and 451000 – 459000 are planned for cost center PC##.

Reason: The cost component split takes into consideration not only the primary cost elements of a cost center, but also the corresponding original cost elements for each iterative price that is allocated (secondary costs) to the cost center in the plan.

Although cost center PC## did not consume any external activities, your activity type Machine Hours (MAH##) contains externally activity costs. These external activity

(C) SAP AG AC412 3-71

costs for one machine hour originate, in this case, from service cost centers repairs, quality assurance and energy.

11-5 Plan balance of each cost center

CCA: Infosystem > Reports for Cost Center Accounting > Actual/Plan Comparison:

Actual/plan variance


All periods in the fiscal year

Execute

Go to the individual cost centers via the variation

Cost Center Plan Balance (periods 1-12)

Short Explanation

CHIP## 0 (but periodic balance > average price)

ENER## 51,000 (price based on capacity)

PC## 0

QUAL## 0

REP## 0

Cost center ENER## has not been credited of all plan costs. As a result of the price calculation (based on capacity), all fixed costs of the cost center are distributed via capacity, not via the planned credit (=Schedule). The remaining costs stay there and must be posted to PA (preparation costs at a higher level).

Calculation of the balance:

102,000 – fixed costs / 3,000,000 kWh capacity * 1,500,000 kWh plan activity. You can view the corresponding distribution of fixed costs in the planning overview report.

The CHIP## cost center (average price MAH## for fluctuating periodic activity) also has a balance in each period. However, this balance levels out during the year (see Plan/Actual Comparison for one period only).

All other cost centers, which calculated your planned prices based on the plan activity, and do not have an average price, have a periodic plan balance as well as a total plan balance of zero.

11-6 Price report for cost center group H_TECH##: Purely-iterative indicator

CCA: Information System > Reports for Cost Center Accounting > Prices > Cost Centers: ActivityPrices:


(C) SAP AG AC412 3-72

Period: 1

Display all selected prices

Execute

Select rows CHIP## / MAH## / PI 1

Go to the period view:

Result: All allocated prices are equally high per period

Select rows CHIP## / MAH## / PI 4 (purely-iterative)

Go to the period view:

Result: The system displays various prices (purely-iterative) in the periods

Price indicator 4 (purely-iterative) shows you an additional comparison value, for example, when you use manual prices or average prices. This value shows you how high a comparable price would be, that has been periodically iterated.

For example, select row CHIP##, MAH## (average price) using price indicator 4 (purely-iterative), and go to the period view. There you can see what the periodically exact price for each period would be, although a yearly average price is used here for the allocation.

This purely-iterative price is calculated using period costs / period activities, while the average price uses yearly costs / yearly activities.


© SAP AG 1999

Transaction-Based Activity Allocations

Periodic Activity Allocations

Contents:



© SAP AG 1999

Explain the concept of actual cost and activity allocation

Perform transaction-based activity allocations

Explain and implement the techniques of periodic activity allocation


Actual Cost Allocation: Unit Objectives


© SAP AG 2001

Allocating Actual Costs






© SAP AG 1999

Activities are allocated in the actuals after planning is completed.

You post activity allocations and execute initial transaction-based checks by means of reports.

At the end of the period, the activities that were not allocated manually can be allocated automatically using period-based techniques.

Actual Cost Allocation: Business Scenario


© SAP AG 1999

Explain the concept of actual cost and activity allocation

Execute, cancel, and repost transaction-based activity allocations

Describe and implement the concept of "Entering Sender Activities"


Actual Costs: Transaction-Based Activity Allocation


© SAP AG 2001

The Concept of Actual Account Assignment

CostCostCenterCenter

COCO

HR

MM

FIFI

ActivityType

Actual ActivityActual Costs

Plan price

When actual costs are entered, primary costs are transferred from the previous component to cost accounting. In the Controlling component (CO), the actual costs are transferred in real time from the components Financial Accounting (FI), Asset Accounting (FI-AA), Materials Management (MM), Production Planning (PP), and Personnel Administration (PA-PA). The costs recorded in these components were assigned to an object of cost accounting (such as a cost center or internal order).

In Controlling, all manual actual postings are structured according to the same principle. You can enter data either with individual entry (for complex allocations) or list entry for cases where large quantities of data are involved.

In contrast to planning (activity dependent), account assignments are not made directly to the activity type. Instead, the assignments are made only to the responsible CO object. This minimizes the effort involved in data entry.

Activity allocation assigns only quantities to accounts. These quantities are valuated using an existing plan price. This enables real-time information to be provided on debits and credits for the receiver and sender.


© SAP AG 1999


CustomerCustomerServiceService

ProgrammingProgramming

Direct Activity Allocation

10 h

5 h

PrgHCat. 1

3 h

Orders,Projects

Enter activity allocations

Sender CCtr. Se-Acty. Rec. OrderPrgHPrgHPrgH

ProgramProgramProgram

103

Rec. CCtrQuantity

ProductionCust. Serv.

5 Project 1

Entry var: to CCtr/Order List Entry

Direct activity allocation means that the internal activities provided are measured, entered, and allocated. To execute direct activity allocation, create an activity type with activity type category 1. Note that before you can execute direct activity allocation, you must define which cost centers are providing which activity types. The activity types must, therefore, be planned on the sender cost center in the R/3 System.

To enter a direct activity allocation, enter the cost center providing the activity (sender), the cost center receiving the activity (receiver), the type of activity, and the quantity of the activity provided. Note that only one cost center can be the sender of a direct activity allocation. The receiver can be any true controlling object (such as a cost center, an order, or a project).

Direct activity allocation credits the sender cost center and debits the receiver cost centers. The debits and credits are made using a secondary cost element (category 43). The debits and credits equal the activity quantity provided, multiplied by the activity price where appropriate.

The cost element used during the direct allocation of internal activity is defaulted by the master data for the activity type. However, you can change this in the cost center/activity type plan. The cost element cannot be changed in the allocation transaction.

Direct activity allocation is transaction-based and documented by sender and receiver line items.


© SAP AG 2001

Actual Activity

Actual Activity


HR

MM

FIFI

ActivityTypeActual Costs

Manual Actual Price

Planning unchanged

2001January

COCO

2001July

Forward scheduled price

changes

Plan pri

ce

Manual Actual Price

You can manually enter actual prices during activity allocations without having to wait until revaluation. It is still possible to calculate actual prices.

You can manually enter an actual price for an activity type of a cost center independent of actual price calculation. Particularly in later periods, the planning data is often obsolete. However, there is more specific information available on changing prices to cover cost differences. With this manual or planning price, you can cover cost differences without changing the planning data.

This price is used to valuate activity relationships between cost centers. Depending on the price indicator, the price can be set manually or overwritten retroactively by the actual price calculation.

The standard planner profile SAPALL contains the planning layout 1-N01 for manual entry of an actual price for activity types of cost centers. The layout also shows you the posted data that exists for the plan price.

You can set the fixed or variable portion of the actual price for an activity type per cost center. Furthermore, you can specify the actual price unit and actual price indicator.


© SAP AG 2001

Entering Sender Activities

Enter sender activities:e.g. 4,960 kWh




AllCats

G

O

A

LS

- Activity Type Cat. 3: Entry for IndirectActivity Allocation

- Activity Type Cat. 4:Operating Rate and Target Cost Calculation

- Activity Type Cats. 2, 5: Compare measuredwith allocated quantity® Variance Analysis

This function enables you to enter measured activity quantities for a cost center and compare them with the allocated activity quantity. For example, if you allocated activities using indirectly-determined activity quantities (compare target=actual activity allocation or indirect activity allocation), variances can occur in the actual quantities determined. If you use a measured quantity, the system is able to determine a more precise operating rate. This provides more detailed information on target costs and the causes of variances. If the allocated quantity differs from the measured quantity, output quantity variances occur during variance calculation.

If you set the corresponding indicator for the cost center's activity type in the activity master data, you can post these activity quantities for all activity type categories. You can overwrite this default during activity planning for cost centers.

Activity Type Category 4: You can also use this function to enter an activity quantity produced by your cost center that is not allocated to other Controlling objects. You enter this quantity for the purposes of cost center control. This allows the System to calculate the operating rate (actual activity divided by plan activity) for your cost center and, consequently, the target costs and variances. This is what distinguishes activity type category 4 from a statistical key figure.

Activity type category 4 is normally used by administration and sales cost centers to allocate costs to Profitability Analysis (CO-PA) using the assessment method.

(C) SAP AG AC412 4-10

© SAP AG 2001

Describe and use the techniques for periodic activity allocation:

Target = actual accrual cost calculations

Indirect activity allocation

Actual template allocation

Target = actual activity allocation


Periodic Activity Allocation: Unit Objectives

(C) SAP AG AC412 4-11

© SAP AG 1999

Calculation of Accrued Costs

Expense=

Costs

COCO--CELCEL

COCO--OMOM

Method:- Accrual in FI- Percentage method- Target=actual method for accrual calculation

Accrued costs:- Valuation diff.- Additional costs

FIFI

COCO--CELCEL

FIFI

COCO--OMOM

Expenses are often allocated differently in Financial Accounting (FI) than in Controlling (CO). For example, these may be expenses that are only assigned to single periods in FI, but in CO need to be distributed evenly throughout the periods (valuation differences, such as annual oil costs). These could also be costs that are incurred for CO, but are not entered in FI (additional costs, such as accrued rent).

The distribution and posting of these accrued costs is called accrual calculation. You can calculate accruals in two ways:

You can post accrued costs by recurring entry in Financial Accounting and thus pass them on to Controlling.

You can calculate accrued costs in cost accounting using the costs posted there. You can use the following approaches:

Accrual calculation using the percentage method (overhead percentage rate)

Accrual calculation using the target=actual method (postings based on the amount of planned accrued costs in actual data, either dependent or independent on activity)

(C) SAP AG AC412 4-12

© SAP AG 2001

Order

Plan activity: 1,000 h

Actual: -11 000

Target=Actual Accrual Methods

Execute accrual5 000 fix + 5 000 var * 120% = 11 000

1.1.

5.5.

Order

4.4.

3.3.

ProductionProductionCost element category 4

2.2.

Actual activity: 1,200 h

Plan Costs Activity Dependent:489 000 Accrued Costs: 5 000 fix 5 000 var.

IMG: T=A Accrual:Assign credit objectto cost element 489 000

MaHActual: 11 000

The target=actual method is used for the accrual calculation of activity-dependent costs. This method is particularly useful where you can plan accrual on a period basis and where the costs are activity-dependent. You plan activity-dependent primary costs using an accrual cost element (cost element category 4) for the following:

Cost centers for which you want to calculate accrual The time period in which you want to execute accrual calculations

When calculating accrual in actual, the System determines the target costs of the relevant cost center based on an activity type, and inserts the target values in the actual value fields. In target=actual accrual calculation, you determine which credit object (cost center or order) is credited for each target=actual cost element.

Before you define a target=actual accrual calculation, you must: Create target=actual cost elements (category 4). Run activity type planning for the cost centers and activity types. Plan activity-dependent primary costs under a target=actual cost element.

The activity-dependent plan costs are used in target cost calculations to determine the accrual amounts for the target=actual method. The target costs of a cost center or activity type are determined using the following calculation: Fixed plan costs plus variable plan costs, multiplied by the operating rate of the activity type of the cost center.

(C) SAP AG AC412 4-13

© SAP AG 2001


Indirect Activity Allocation in Actual Data(Category 3)

Cat. 3

Enter sender activity

1.1.

2.2.

Receiver input is

automatically posted

Cycle Flow:- Allocation of actual activity

per cycle rules

4.4.


Cost CenterCost Center3.3.

Distribution of the sender activities:- Posted quantities- Fixed quantities

based on tracing factors per receiver- Percentages- Fixed quantities- Actual statistical key figures- Actual costs- Actual activity- ...

Cycle definition:

Indirect activity allocation automatically assigns activities in the actual data. Unlike the direct, manual allocation of activity, you need to define keys to be used for the automatic periodic allocation of actual activities. In the same way as all other periodic allocation methods, indirect activity allocation uses segments and cycles to define sender and receiver relationships. You define the processing methods for each segment. Different methods can occur together in one cycle. The costs are allocated using a secondary cost element from category 43. The cost element assignment is defaulted from the master data of the activity type for the cost center/activity type plan, and can be changed. Cost centers function as senders in indirect activity allocation. The receivers of an indirect activity allocation can be cost centers, WBS elements, internal orders, cost objects, or business processes. Depending on the activity type category, you can use one of two allocation methods:

If you can calculate the total activity for the sender, use indirect activity allocation to distribute the posted activity quantities from the senders to the receivers, using specific keys. If activities are to be posted to a sender object, use activity type category 3 (manual entry, indirect allocation). The corresponding segment must use the "Posted quantities" sender rule. All receiver rules are valid here except "fixed quantities".

(C) SAP AG AC412 4-14

© SAP AG 2001

Indirect Activity Allocation in Actual Data(Category Two)

1.1.




2.2.

2.2.

Cycle definition:Derivation of sender activities from:∑ of tracing factors

- Inversely calculated- Sender values: x per tracing factor

Distribution of the receiver quantities based on tracing factors

- Percentages- Fixed quantities- Statistical key figures- Costs- Activities- ...

Cycle Flow:- Allocation of actual activities

to sender and receiver

3.3.


Cat. 2

Sender activity and receiver input are

automatically posted

If you cannot calculate the actual activity quantity for certain activity types, or if this is too time-consuming, the R/3 System determines the activity using the following methods : The sender activity quantity is derived from the receiver tracing factors (with global or a weighted factor that is defined per sender) or from the corresponding entries in the segment definition (as a fixed sender or receiver quantity).

This second form of indirect activity allocation uses activity type category 2 (indirect entry, indirect allocation). The affected segment must either use the sender rule "Inversely Calculated Quantity" along with any receiver rule, or the identical sender and receiver rules "Fixed Quantities". If you use sender rule for inversely calculating the quantity, the sender-specific weighting factors mentioned above are calculated with the sender values function (Default Value = 1).

When the cycle is run, the system first calculates the allocation bases of the receivers, to determine how the activities of the sender should be distributed. The sum of the tracing factors multiplied with the "sender values" is the total activity of the sender. This quantity is then credited to the sender and debited to the receivers accordingly.

(C) SAP AG AC412 4-15

© SAP AG 1999



Actual Template Allocation

PrimaryCosts

StatisticalKey Figures

AdditionalSAP Data

ExternalSystems

Template

Functions

∫ ∑∞

= ∗

m

1mi

i

27

Ωπη

Activity

Activity

Cost CenterCost Center Activity

Template allocation is used to calculate the quantities consumed by the receiver cost centers. The costs are calculated by valuating the quantities with prices. To calculate the required data, the template uses R/3 standard or user-defined functions. These functions make it possible to reference specific field contents or apply complex algorithms to operative data from the R/3 system.

Template allocation can be made to a cost center independent of the activity and/or depending on the activity.

A requirement for template allocation to a cost center is that a template must be assigned to the cost center. You make this assignment by entering a template in the master data of the cost center.

The allocation is based on periods and fiscal years.

In addition to cost centers and cost center/activity types, the receiver objects for template allocations can be profitability segments, cost objects, and business processes.

(C) SAP AG AC412 4-16

© SAP AG 1999

TemplateTemplateTemplate

Template Definition

Object ActivationType Actual: VariableQuantity Factor

CCtr/AT 1000/1410

Actual:Fixed Qty

Function FunctionCondition

∫ ∑∞

= ∗

m

1mi

i

27

Ωπη

Whichcost center/

activity type?

Under whatconditions?

Fixedallocationquantity

Variableallocation

quantity factor

Actual Template Allocation:When condition met, quantities are calculated based on template

∫ ∑∞

= ∗

m

1mi

i

27

Ωπη

A template is a dynamic tool that uses functions and formulas to calculate values and that determines the result of Boolean expressions (true or false). It consists of a table (row/column) structure.

You can enter an object yourself (such as cost center 1000 and activity type 1410) in the object column, or you can have the system determine this for you during evaluation (for example, the cost center of a specific cost center category).

You can use it to set the value of an item to active or inactive, to define conditions that are checked during the evaluation or to set requirements for allocations.

In activity-independent template allocation, the variable quantity factor determines the planned sender output quantity by multiplying the output quantity of the receiver object with the variable factor. You can enter a constant value for the factor, or allow the system to calculate it automatically at the time of evaluation.

The planned fixed quantities represent fixed consumption quantities that you enter as constant values or have the system calculate automatically at the time of evaluation.

(C) SAP AG AC412 4-17

© SAP AG 2001

Target=Actual Activity Allocation (Cat. 5)

3.3.

1.1.

4.4.

EnergyEnergy

Target=Actual Activity Allocation:actual activities of the sender based on theoperating rate of the receiver

Plan acty qty

Actual activityProduction 1Production 1

Production 2Production 2Plan activity

Actual activityMaH

MaH

Actual acty/Plan activity qty= Operating ratePlan activity Cat. 5

(Actual)

2.2.activity input

activity input

Sender activity and receiver input are posted automatically

The target=actual activity allocation is a particular type of indirect activity allocation for actual quantities. In contrast to the other forms of indirect activity allocation, it uses iterative (step-by-step) calculations based on the activity network and the operating rate as a tracing factor.

The procedure for target=actual activity allocation is as follows: - Plan your activity relationships as usual. The sender cost centers plan their activity output and use activity type category 1,2, or 3 in the planned data. Category 1 is normally used. - The receivers plan their activity input of the activities produced by the cost centers. This gives you your planned activity network. The target=actual method requires a completely reconciled plan at period level. - After posting the actual activities to the receivers, the system can determine an operating rate. Using this rate and the (fixed/variable) plan activity output, the system calculates the target activity output for the receiving cost centers. This results in the target activity of the sender cost centers. - The variable portion of the plan activity quantity is adjusted by the target=actual activity allocation for the receiver cost centers/activity types, and is updated as the variable actual activity quantity. The fixed part is transferred from the plan to actual in the target=actual activity calculation.

This actual allocation requires the use of the actual activity type category 5 (target=actual allocation). The target=actual allocation is iterative, which means that recursive activity relationships are taken into account.

(C) SAP AG AC412 4-18

© SAP AG 2001

Target=Actual Activity Allocation: Example1.1.

Operating rate: 120%

Actual activity = 120,000

kWh

Operating rate = 92%

Actual activity = 23,000 kWh

2.2.

3.3.

4.4.3.3.

EnergyEnergy

Production Production PCPC

Production Production ChipChip MaH

MaHPlan: 1,000 h

Actual: 1,200 h

Plan: 350 h

Actual: 320 h

Plan: 125,000 kWh

100,000 KWh variable

25,000 kWh variable

kWhCat. 5(Actual)

Target=Actual Activity Allocation3.3.

92%

120%

As a rule, target=actual activity allocation is primarily used if the service cost center's activity is directly dependent on the operating levels of the primary cost centers.

In the example on the slide, the target=actual activity allocation of a energy cost center is described: 1. First, all cost centers plan their activity output. 2. When planning activity input, the two production cost centers determine how many kWh they want to consume.

3. After the actual activities have been posted to the receivers (machine hours), an operating rate can be derived for each production cost center (in this case: 92% and 120%).

4. During target=actual activity allocation, the fixed planned input quantities are posted in the actual data. The variable input quantities are multiplied by the operating rate and corresponding actual postings are made.

Result: The energy cost center produces an actual quantity of 125,000 kWh (plan 100,000 kWh), of which the receivers consume an actual quantity of 120,000 kwh (plan 100 kWh) and 23,000 kWh (plan 50 kWh) respectively.

(C) SAP AG AC412 4-19

© SAP AG 1999

Describe the concept of actual activity allocation

Perform transaction-based activity allocations

Explain and use the techniques of periodic activity allocation


Actual Cost Allocation: Summary

(C) SAP AG AC412 4-20

Exercises

Unit: Actual Cost Allocation


• Execute transaction-based postings and activity allocations

• Use the target=actual procedure for accrued cost calculations

• Describe the concept of entering sender activities

• Configure and use automatic periodic procedures for activity allocations, such as indirect activity allocation or target=actual activity allocation

After closing the planning, post various costs in the current period to your cost centers. Additionally, allocate your activity types from category 1 to the receiver (based on transactions).

Post the accrued costs from both production cost centers using the target=actual procedure using the operating rate of the receiver cost center.

You want to make certain postings and allocations at period-end closing that were not possible to do manually because they could not be measured or because the effort to measure them would have been too great (activity type categories 2, 3 and 5).

• Post the sender activities of the quantity assurance cost center (category 3), and allocate them according to statistical key figure “produced units” to the production cost centers.

• Allocate and post the activities of the energy cost center (category 5) using the operating rate of the receiver. This ensures that the activity fluctuations of the production cost centers affect the consumption of energy activities.

1 Transaction-Based Postings

1-1 Preparation: Change your user settings so that the analysis period for planning and the reporting period are set to the current period.

1-2 G/L account posting:

(C) SAP AG AC412 4-21

Enter the following actual postings for your cost centers in the current period. Make the posting using the current date and choose the entry variant with cost center. Choose the V0 (no control) control indicator and enter the following items.

To simplify the process, you can select the Template AC412a and replace the cost center number with your number. Check your entries before making the posting.

G/ Debi Amou Cost

40 D 3,00 V ENE

41 D 2,00 V ENE

41 D 15,0 V ENE

43 D 5,00 ENE

(C) SAP AG AC412 4-22

47 D 1,50 V ENE

41 D 6,00 V QUA

42 D 8,00 QUA

43 D 10,0 QUA

47 D 2,00 V QUA

42 D 60,0 PC#

43 D 40,0 PC#

47 D 5,00 V PC#

(C) SAP AG AC412 4-23

42 D 32,5 CHI

43 D 10,0 CHI

47 D 3,00 V CHI

11 C 203,

1-3 Activity allocations

Allocate the activities of your production cost centers PC## and CHIP## directly to a production order. To simplify the transaction, allocate them all to order AC412. Execute the allocation in the entry variant “Order” and enter the following in the list entry:

Sender Center

Sender Activity Type

Receiver Order

Un Total quantity

PC## MAH## AC412 H 1.200

PC## SETH## AC412 H 100

(C) SAP AG AC412 4-24

CHIP## MAH## AC412 H 320

2 Period-end closing allocations

2-1 Target=Actual Method for Accrual Calculation

The cost centers PC## and CHIP## there is a yearly cost for waste disposal related to production. You have already planned these accrued costs under cost element 489000 (misc. accrued costs). Because these costs occur only once a year, you want to accrue the costs evenly over the months. As these costs fluctuate depending on activity, use the target=actual accrual method

2-1-1 Analyze the cost element 489000. Which cost element category contains the cost element?

2-1-2 Go to the planning overview for your cost center PC##: Which fixed and variable costs are planned under this cost element (489000) for the current period? Name the activity type (activity dependent) for which you are planning.

C C A Fixed Planned Costs


4 P

2-1-3 Check the target=actual accruals in Customizing. Which object serves as the accrual object for the target=actual accrual for cost center PC## (note: the cost center belongs to business area 1000).

(C) SAP AG AC412 4-25

Accrual object: _______________________

2-1-4 Check the operating rate of cost center PC## for activity type MAH## using the

Plan/Actual Variance Report.

C A A P Operating rate

(=%Variance + 100)

P M %

2-1-5 Execute the accrual for the current period and both of your production cost

centers (H_PROD##) in an update run. Which costs are posted in actual to the cost centers under cost element 489000? Describe the results of the actual cost calculation for cost center PC##

Cost element 489000

C A Total Value

Fix. Value

(C) SAP AG AC412 4-26

P M

Calculation for PC## with activity type MAH##:

2-1-6 Check the results of the accrual in the Plan/Actual Variance Report for cost center PC##. Which costs are posted to the cost centers in actual for the current period?

Cost C Actual Costs

Plan Costs

PC# 4

2-2 Indirect Activity Allocations

General Description:

For the cost center Quality Assurance (QUAL##), you can enter the exact actual activity per period (sender activity), but you can not enter which receiver cost centers consumed these activities (too complex). However, you know from experience that the quality assurance hours depend on the number of produced units. As different units are produced (PC’s and Chips), you must determine a weighted average/ratio that reflects the inspection effort.

(C) SAP AG AC412 4-27

2-2-1 Sender activities: Enter the sender activities for cost center QUAL## for today (160 h of activity type QUAH##). Since the activity type category is Actual 3, you can enter this sender activity. The allocation of these posted quantities should automatically occur every period through the use of indirect activity allocation.

2-2-2 Enter the statistical key figure NPROD (produced units) for both production cost centers PC## and CHIP##, under today's date. This statistical key figure serves as the basis for the allocation of quality checks.

Receiver Center

Statistical key figure

Quantity

PC## NPROD 120

CHIP## NPROD 400

2-2-3 Cycle processing:

General Explanation:

You want to allocate the activities of cost center QUAL## to the production cost centers. To do this, you use the quantities already entered, and distribute them to the receiver cost centers (cost center group H_PROD##) using the statistical key figure NPROD. Based on your experience, you know that inspections for PC’s take 10 times as much effort as they do for Chips, and therefore you apply a weighted ratio.

2-2-3-1 Create a cycle named ILVQ## beginning at the start of the current fiscal year, that takes the corresponding defaults into consideration.

In the first segment (S1) you define the for the segment header, 100% of the actual posted quantities are to be allocated according to the receiver tracing factor Variable portion based on the actual statistical key figure.

Enter the cost center QUAL## with the activity type QUAH## as sender and the cost center group H_PROD## as receiver.

Define the statistical key figure NPROD as the receiver tracing factor. Using weighting factors, you determine that cost center PC## (for example, 1000) requires ten times as much effort as cost center CHIP## (for example, 100).

Assign the cycle to a cycle run group, which you create under a new run group AG## (“with Parallel Processing”). This ensures that all cycles can run in parallel in the course.

(C) SAP AG AC412 4-28

Check and save the cycle.

2-2-3-2 Run your cycle ILVQ## in the test run for the current period. What quantities are allocated from the sender? How many quality hours are posted to the receiver?

S R

Q h C h

P h

Explain the quantity calculation

Repeat the cycle in the update run.

2-2-3-3 Go to the cycle overview and display all cycles for indirect actual activity allocation.

Change the overview layout so that the columns Last changed by, Cycle run group and Last executed on are also displayed.

From the overview go directly to the cost accounting document that you generated.

Document number: _____________________

What amount was credited to Sender QUAL##?

QUAL## >

(C) SAP AG AC412 4-29

CHIP##

QUAL##> PC##

2-3 Target=actual activity allocation for cost center ENER##:

General Explanation:

As you cannot exactly measure the activity of the energy cost center, but still want to distribute it fairly to the receiver, you use the target=actual activity allocation. This allows you to determine the activity flow from the sender relative to the operating rate of the receiver cost centers.

2-3-1 Enter cost center ENER## in the planning overview for the current period. What quantity of energy activities ENH## are to be transferred (fixed and variable) to receivers PC## and CHIP##?

C A R- R Fixed Var. Quantity

E E CHI M kWh kWh

E E PC# M kWh kWh

(C) SAP AG AC412 4-30

2-3-2 Use the Actual/Plan Variance report to analyze the current operating rate for the receiver cost centers PC## and CHIP## in the current period.

C A A Pl Operating rate

(%Variance + 100)

P M h %

C M h h %

2-3-3 Execute Target=Actual activity allocation in test run for the current period, and your cost center group H_TECH## in version 0

What operating rate did cost center ENER## have in the current period?

Operating rate from ENER##. __________ %

Post the results

(C) SAP AG AC412 4-31

2-3-4 Use the Actual/Plan Variance Report to determine which actual costs from cost center ENER## were allocated to the receiver PC##. Go to the line items of cost element 639200 and choose display variant “Activity Allocation”.

Sender / Activity Type

Receiver/Activity Type

Qty Valu

ENER## / ENH##

/

(C) SAP AG AC412 4-32

Solutions

Unit: Actual Cost Allocation

1 Transaction-Based Postings

1-1 Preparation: User Settings

CCA: Information System > User Settings

Planning period: Select the current period and fiscal year.

Reporting period: Select the current period and fiscal year.

Save and return.

1-2 G/L account posting:

Accounting > Finance > General Ledger > Posting > Post G/L Account

Enter

Document Date: today’s date

Choose: Screen variant: "With cost center"

Choose Template AC412b and change the cost center numbers.

Before saving, ensure that all values are correct and then choose: Post

G De Amou Cost

(C) SAP AG AC412 4-33

4 D 3,00 V ENE

4 D 2,00 V ENE

4 D 15,0 V ENE

4 D 5,00 ENE

4 D 1,50 V ENE

4 D 6,00 V QUA

(C) SAP AG AC412 4-34

4 D 8,00 QUA

4 D 10,0 QUA

4 D 2,00 V QUA

4 D 60,0 PC#

4 D 40,0 PC#

4 D 5,00 V PC#

4 D 32,5 CHI

(C) SAP AG AC412 4-35

4 D 10,0 CHI

4 D 3,00 V CHI

1 C 203,

Disregard possible warning messages by pressing enter.

1-3 Activity allocations

CCA: Actual posting > Enter activity allocation

Choose the screen variant Order

Choose the list variant.

Enter the given items.

Sender Center Sender Activity Type

Receiver Order

Unit Total quantity

PC## MAH## AC412 H 1,200

PC## SETH## AC412 H 100

CHIP## MAH## AC412 H 320

(C) SAP AG AC412 4-36

Post the allocations.

2 Period-end closing allocations

2-1 Target=Actual Method for Accrual Calculation

2-1-1 Analyze cost element 489000

CCA: Master Data > Cost Element > Individual Processing > Display

Cost element 489000

Cost Element Category: 4: Accrual according to Target=Actual 2-1-2 Planning overview of cost center PC##

CCA: Information System > Reports for Cost Center Accounting > Planning Reports:

Cost Centers: Planning Overview

Cost center: PC##

Period: current period

Version: 0

Execute

Enter the values given in the table

C C A Fix Planned variable Costs

4 P M 5,0 5,000

(C) SAP AG AC412 4-37

2-1-3 Accrual object for Target=Actual accrual

IMG: Controlling > Overhead-Controlling > Cost Center Accounting > Actual Posting > Period-End Closing > Accrual > Target=Actual Method > Maintain Target=Actual Credit: Maintain Target=Actual Credit

Cost element 489000 Detail Screen

Objects in company code 1000 and business area 1000 are defined by

Order: 9AEUDE1000 T

2-1-4 Operating rate of cost center PC##

CCA: Information System > Reports for cost center accounting > Cost centers. Actual/plan variance

Cost center: PC##

Period: current period in current year

Version: 0

Execute

C A A P Operating rate

(=Variance + 100)

P M 1, 1, 120 %

(C) SAP AG AC412 4-38

2-1-5 Execution of the accrual:

CCA: Actual postings > Period-end closing > Individual Functions > Accrual

Cost center group: H_PROD##

Period: current period in current fiscal year

Update Run

Execute

Cost element 489000

C A Total Value

Fixed Value

P M 11,000 5,000

The fixed costs (5,000) are posted in Actual as planned. The variable plan costs for hazardous waste are multiplied with the operating rate and posted in Actual (5,000 * 120% = 6,000). This posting results in the above order being credited. All FI postings regarding hazardous waste will then be posted to this order.

2-1-6 Results of accrual calculation

CCA: Information System > Reports for cost center accounting > Actual/Plan-Variance

Cost center: PC##


Version: 0

(C) SAP AG AC412 4-39

Execute

Cost C Actual Costs

Plan Costs

PC# 4 11,000 10,000

2-2 Indirect Activity Allocations

2-2-1 Sender activities

CCA: Actual Postings > Enter Sender Activities

Go to the list screen.

Sender Center: QUAL##

Activity Type: QUAH##

Activity Quantity: 160 h

Save 2-2-2 Enter statistical key figure NPROD

CCA: Actual Postings > Statistical Key Figures > Enter

Go to the list screen.

Receiver Center

Statistical Key Figure

Qty

PC## NPROD 120

(C) SAP AG AC412 4-40

CHIP## NPROD 400

Choose Save.

2-2-3 Cycle processing:

2-2-3-1 Create Cycle

CCA: Period-End Closing > Individual Functions > Allocations > Indirect Activity Allocation

Create additional cycle

Cycle: ILVQ##

Start date: 01.01. Current fiscal year

Enter

Text: Allocation Quality ##

Attach segment

Enter

Segment name: S1- Indirect Activity Allocation (IAA) Quality ##

Sender values: Rule: Posted amounts

Portion: 100% Actual values

Receiver tracing factor:

Rule: Variable portions

Type: Actual statistical key figures

Sender/Receiver:

Sender - Cost Center: QUAL##

Sender Activity Type: QUAH##

Receiver – Cost Center Group: H_PROD##

Receiver tracing factor:

Variable portion type): Actual statistical key figures

Statistical key figure: NPROD

Receiver weighting factors (per 100)

(C) SAP AG AC412 4-41

CHIP##: 100

PC##: 1000

(Produced units of PC’s require 10x as much effort to inspect as Chips.)

Header Screen Check

Save

Goto > Cycle Run Group:

Enter AG## and choose Create

Text: Enter “with parallel processing”

Confirm with Enter

Save

Return

Save the entire cycle and exit screen.

2-2-3-2 Execute Cycle


Periods: current to current

Fiscal year: Current fiscal year

Cycle: ILVQ##

Enter

Select Test run

Execute

Results:

S er:

Q-160 h ##: 40 h

(C) SAP AG AC412 4-42

120 h

Repeat the cycle in an update run.

Reason: The 160 h from cost center QUAL## (posted actual quantities) are allocated as follows:

CHIP## receives 40 h: Calculation basis: 400 allotments (posted statistical key figure NPROD = 400 pieces) * 1 (weighting factor)

PC## receives 120 h: Calculation basis: 1,200 allotments (posted statistical key figure NPROD = 120 pieces) * 10 (weighting factor)

2-2-3-3 Cycle Overview


Additional > Cycle > Display Overview

Select "Indirect activity allocation" and "actual", and then choose Execute selection

Change the overview layout so that the fields "Previous Processing" and "Cycle run group" are added to the display.

Select the cycle and choose "Previous Processing"

Enter

Document number:

____________________

Double-click on the document:

QUAL## > CHIP#

~ 7

(40 h * 193 Planned Price)

(C) SAP AG AC412 4-43

#

QUAL##> PC##

~ 23 (120 h * 193 Planned Price)

(C) SAP AG AC412 4-44

2-3 Target=actual activity allocation for cost center ENER##:

2-3-1 Planning overview for cost center ENER##

CCA: Information System > Reports for cost center accounting > Planning reports > Cost Centers: Planning Overview

Cost center: ENER##

Time period: Current period in current fiscal year

Version: 0

Execute

C A R- R F Var.

E E CHI M - -

E E PC# M - -

(C) SAP AG AC412 4-45

2-3-2 Operating rate for receiver cost centers PC## and CHIP##

CCA: Information System > Reports for cost center accounting > Cost Centers >Actual/Plan-Variance

Cost center: PC##

Period: current period in current year

Execute

C A A Pl Operating Rate

(Variance + 100)

P M 1 120 %

C M 3 35 91 %

(C) SAP AG AC412 4-46

C M 3 20 160 % **

** Cost center had planned activities of 200 h in periods 6-9, and 350 h in the remaining periods.

2-3-3 Execute target=actual activity allocation

CCA: Period-End Closing > Individual Functions > Allocations > Target=Actual – Activity Allocation


Business processes: None

Version: 0


TEST RUN

Execute

Operating rate from ENER##. 114 %

(periods 6-9: 128%)

Post the results.

2-3-4 Results of the target=actual activity allocation

CCA: Information System > Reports for cost center accounting > Cost centers. Actual/plan variance

Cost center: ENER##


Version 0

Execute

Select the line item for cost element 639200 (allocated actual costs)

Double-click

(C) SAP AG AC412 4-47

Choose the Actual Line Items.

In the line item, choose:

Display variant Secondary costs: Activity allocation

Sender / Activity Type

Rece Qt Value

ENER## / ENH##

PC# - - 19,920

Planned Price 0.166 * 120,000 kWh


© SAP AG 1999

Plan/Actual Comparison

Target Cost Analysis

Variance Analysis

Actual Price Revaluation

Marginal Costs

Contents:

Period-End Closing


© SAP AG 1999

Explain the various methods of managing costs for responsibility areas in R/3

Use the period-end closing scenario that is appropriate for your company

Discuss and analyze alternative period-end closing scenarios.


Period-End Closing: Unit Objectives


© SAP AG 2001

Period-End Closing






© SAP AG 1999

The plan and actual costs have been entered and allocated, and now you want to utilize various cost control and analysis methods offered by the R/3 System.Because the operating levels in your company may fluctuate, you are mainly interested in a target cost analysis that examines how the actual costs vary with the operating level.You wish to use extended variance analysis to determine the causes of cost variances.Actual prices should be calculated for some activities and, if needed, the activities revaluated for the receivers.You also learn how to allocate marginal costs for mid-term cost controlling.

Period-End Closing: Business Scenario


© SAP AG 1999

Analyze and evaluate standard reports such as plan/actual comparisons

Explain the limitations of plan/actual comparisons

Explain the application goals and possibilities of the enhanced R/3 analysis and allocation tools


Period-End Closing: Plan/Actual Comparisons:Topic Objectives


© SAP AG 2001

Cost Center Balance

Cost Elements Actual Costs Plan Costs Var. (absol.)

415100 External activities 12,100 10,000 2,100 404000 Spares 900 900 430000 Salaries 10,000 10,000 * Debit 23,000 20,000 3,000

619000 DIAA Repair -28,000 -20.000 -8,000* Credit -28,000 -20,000 -8,000

** Under/Overabsorption 0-5,000 -5,000

Activity (h)

Costs (C)

h (Plan)

C (Plan)

Cfix (Plan)

AllocatedActual Costs

Actual CostsPlan Costs

Plan

Price =

200/h

Reasons?

How high are thecost center results?

Under/Over Absorption(Balance Act. Costs)

As soon as all periodic allocations are executed (accrual allocations, periodic repostings, distributions, assessments, indirect activity allocations, target=actual activity allocations) you can execute closing analyses for your areas of responsibility. The Controlling functions available depend on the functions you have used during the period and the cost accounting system that you implement.

The information system plays a crucial role here. Therefore, a review of the simple analytical functionals is advisable at this point , so that you can master the more advanced fucntions covered later in this unit. In the plan/actual comparison (in the Under/Over Absorption Actual Costs column), you can analyze the balance of the cost center:

This specifies the debits on the cost center and how much of these debits the cost center has passed on. If the cost center has assessed all its costs, the balance is zero.

For cost centers that allocate activity-related costs using plan prices, the balance is usually transferred to Profitability Analysis using assessment. For activity types/cost centers and constant period prices (in this case, 200 UNI/quantity unit), the allocated costs are in line with the target credits as opposed to the actual activity (see above illustration).

A negative balance (as shown above) shows that the actual costs incurred were less than the activity costs debited to the receiver (-5,000 UNI).


© SAP AG 1999

Plan/Actual Comparison: Debit Side

C (Plan)

Cfix (Plan)


Actual CostsPlan Costs

Costs (C)

Plan Price

= 200/h

Reasons?

C (Actual)

Plan/Actual Comparison(Debit Side)


415100 External activities 12,100 10,000 2,100404000 Spares 900 900430000 Salaries 10,000 10,000* Debit 23,000 20,000 3,000

619000 DIAA Repair -28,000 -20,000 -8,000* Credit -28,000 -20,000 -8,000

** Under/Overabsorption 0-5,000 -5,000

Activity (h)h (Plan)

A simple way to judge the efficiency of a cost center in standard costing is to do a plan/actual comparison on the debit side. The actual costs are compared directly with the planned costs in this case.

In the above report, the actual costs exceed the planned costs by 3,000 UNI. That is, higher costs were actually incurred than were planned.

However, this report does not take into account the output of the cost center, so we cannot realiably judge its efficiency from this data.


© SAP AG 1999

Plan/Actual Comparison: Credit Side

Plan Price

= 200/h


Actual Costs

AllocatedPlan Costs

C (Plan)

Cfix (Plan)

Costs (C)

Reasons?

C (alloc.)

Are the allocatedcosts higher than the planned

costs? (credit side)


415100 External activities 12,100 10,000 2,100404000 Spares 900 900430000 Salaries 10,000 10,000* Debit 23,000 20,000 3,000

619000 DIAA Repair -28,000 -20,000 -8,000* Credit -28,000 -20,000 -8,000** Under/Overabsorption 0-5,000 -5,000

Activity (h)h (Plan)

The plan/actual variance on the credit side tells us what costs were allocated as compared with the planned allocation for the cost center.

In this example, the variance on the credit side is negative. This means that the receivers of the activities (or costs) of the cost center are burdened with higher debits than planned.

The illustration shows a simple case with only one activity type that is allocated with an iterative plan price of 200 UNI.


© SAP AG 1999

Period-End Closing: Extended Scenario

Target Cost AnalysisOperating rate

Target/actual comparisons

Variances -> result

Actual Price CalculationCost centers should be completely credited

Variances -> activity receiver

Actual costing

Variance AnalysisCauses of variances

Variance reports

Variances -> result

Marginal CostsActivity allocation with variable prices

Fixed-cost allocation in blocks (predistribution of fixed costs)

Variance analysis

Variances -> result

1

2

3

4

You can use various methods in R/3 for advanced analysis of responsibility areas. The appropriate method depends on the company's goals and its cost controlling approach.

Therefore, four period-end closing scenarios are illustrated below, each with its own distinctive information and effect. The scenarios are designed to clearly illustrate the importance, goals, tools, required steps (Customizing) and the ideal procedure relevant in each case.

In certain cases these scenarios can be combined with each other. For example, you can combine marginal cost allocation with variance analysis, but not with revaluation at actual prices. You will find more detailed information in the following scenarios.

(C) SAP AG AC412 5-10

© SAP AG 1999

Explain the concept of continuous calculation of target costs

Interpret target/actual comparisons of cost centers

Use target cost analysis as an instrument for cost and activity controlling in cases of operating fluctuations


Target Cost Analysis: Topic Objectives

(C) SAP AG AC412 5-11

© SAP AG 1999

Target Cost Analysis: Objective

Target Cost AnalysisObjective: Analyze cost centers with regard to actual operating level

How high is the operating rate of my activities?

Target/actual comparisons: How have costs changed relative to the operating rate?

How do I interpret the target/actual variance of my cost center?

To enable detailed analyses of the actual costs, the number of activities actually used as compared to those planned in the cost center must be considered. Cost center analysis is based on the target costs.

The target costs are determined based on the cost center's plan costs and the activities rendered (operating rate). Target costs are those expected for certain activities.

The operating rate indicates the actual capacity utilization of an activity by a cost center, and is given as the ratio (in percent) of the actual activity to the plan activity.

(C) SAP AG AC412 5-12

© SAP AG 1999

Target Costs: Concepts and Calculations

Cost Elements Actual Costs Target Costs T/A-Var.(abs)

415100 External acty. 12,100 14,000 -1,900404000 Replacement 900 900430000 Salaries 10,000 10,000

* Debit 23,000 -1000

619000 DILV Production -28,000 -28,000

* Credit -28,000 -28,000

** Under/Overabsorption -4,000-5,000 -1,000

Plan Costs

10,000

10,000

20,000

-20,000

-20,000

0

Activity-Based Calculations of Target Costs/Cost CenterDebit side:

Fixed plan costs+ Variable plan costs (or qty) * operating rate= Target costs

Credit side:= Target credit (actual qty at full cost prices)

Plan costs:Remain constant

Actual costs: Increase withresource consumption

Target costs (variable):Increase withown activity

24,000

The system can continuously calculate the target costs directly. This makes it possible to obtain an actual/target comparison before the end of the period. Target costs deviate from the plan costs only when activity-dependent planning has taken place. Increases in target costs and actual activities of an activity type are correlated for the cost center.

Target costs that appear in the standard report Target/Actual Comparison are calculated as follows:

Debit side:

Activity-independent planned costs:

Plan costs = (fixed) target costs

Activity-dependent planned costs:

Fixed planned costs = fixed target costs

Variable planned costs * operating rate = variable target costs

(Secondary costs are calculated using fixed or variable quantities)

Credit side:

Target credit = allocated quantities * iterative plan prices (full cost basis)

(C) SAP AG AC412 5-13

© SAP AG 1999

Target Costs: Areas of Responsibility

ComputerComputerProductionProduction

ChipChipProductionProduction

ProductionProduction:Actual Costs Target Costs Plan Costs200,000 185,000 200,000

Computer Production:Actual Costs Target Costs Plan Costs120,000 125,000 100,000---------------------------------------------------------------------Operating rate: 120%Operating rate: 130%

Chip Production:Actual Costs Target Costs Plan Costs80,000 60,000 100,000----------------------------------------------------------------------Operating rate: 60%

MaH

SetH

MaH

Target costs can be used in reporting to represent various areas of responsibility, such as cost centers and cost center groups. The Variation function allows you to go from one area of responsibility to another.

You can analyze the actual and target costs for each area. Furthermore, you can see the appropriate activity types for each area, along with the respective operating rates.

The above example shows how target costs can provide more detailed information than the plan costs.

When the actual costs are higher than the target costs, this can be due to the following reasons:

The actual costs are too high

The actual activity quantity is too low

(C) SAP AG AC412 5-14

© SAP AG 2001Activity (h)

Fixed costs 10,000

100 hrs (plan)

C (Plan)

Cfix (Plan)

Costs (C)

140 hrs (actual)

Allocated Actual Costs

Target CostsActual Costs

Planned Costs

Target - Actual Comparison

Target Cost Curve


415100 External activities 12.100,- 14.000,- -1.900,-404000 Spares 900,- 900,-430000 Salaries 10.000,- 10.000,-* Debit 23.000,- 24.000,- -1.000,-

619000 DIAA Production -28.000,- -28.000,-* Credit -28.000,- -28.000,-

** Under/Overabsorption -4.000,--5.000,- -1.000,-

Plan Costs

10.000,-

10.000,-20.000,-

-20.000,--20.000,-

0,-

What costs wereover or

under allocated?=> Balance Target Costs

Target credit

100/hr variable

What costswere incurred?

=> Target/Actual Variance,Debit Side

The target/actual variances from the target cost analysis are used to check the economic variances of the debit side. Here, the incurred cost center costs are compared with those that should have been incurred.

The above report shows that the cost center incurred less costs than it should have at the same level of operation, even though more actual costs are shown than plan costs. The cost center had a favorable (negative) target/actual variance for the debit side (-1,000 UNI). This stems from a higher level of activities than planned. The target/actual comparison report shows the operating rate for each individual activity type of the cost center.

Furthermore, the over/under absorption value details what costs were allocated too high, or too low (compared to the target costs). These are variances of the estimated costs (target costs) that are debited too high or too low to the receiver. In the example above, the receiver is allocated with activity costs that are too high (4,000 UNI), which then works out favorably for the sender cost center (negative variance -4,000 UNI).

The illustration shows that the balance (under/over absorption of actual costs) is the sum of the target/actual variances for the debit side plus the under/over absorption of the target costs.

(C) SAP AG AC412 5-15

© SAP AG 1999

Target Cost Analysis: Procedure

Create activity types

Activity planning, activity-dependent cost planning and plan price calculation

Cost and activity allocation

Target/actual comparisons

Variances -> result

Target Cost Analysis

COCO--PAPA

NNoorrmmaall sseeqquueennccee ffoorr ttaarrggeett ccoosstt aannaallyyssiiss:: The period-end closing scenario with target cost calculation differs from standard analyses in that the actual activities, and not just the actual costs, are examined to evaluate the cost center's performance.

You can obtain meaningful target costs that increase with the actual activity output (and thus favorably affect the cost center) only with activity-dependent planning. The actual costs for activity-independent planning would always equal the plan costs. To fully interpret the results, you should first execute plan reconciliation to calculate the exact prices to be allocated.

Aside from that, this analysis is easy to perform and offers current target cost calculations. The balance of the cost centers is normally transferred to profitability analysis, as is the case with plan/actual analyses.

(C) SAP AG AC412 5-16

© SAP AG 1999

Explain actual cost splitting and how to execute it

Distinguish between the variance categories of the input side and the output side

Explain the causes of the variances

Implement variance analysis effectively


Variance Analysis: Topic Objectives

(C) SAP AG AC412 5-17

© SAP AG 2001

Variance Analysis: Objective

Variance AnalysisObjective: Accurately determine the causes of the variances

Actual cost splitting: How are the actual costs distributed across the activities?

Variance categories: What caused the variances?

Variance reports: Who is responsible for the variances?

Variances are caused by differences between actual and target data. If you want to analyze the causes of the cost center variances described in the previous unit in more detail, you can use a tool available in R/3 for automatic variance calculation.

This tool is especially useful when the target-actual variances do not, by themselves, reveal the causes of the differences and show who carries the responsibility for them.

Automatic variance calculation involves a number of steps. You must differentiate between the system configuration in Customizing, which is a prerequisite for variance calculation, and the additional steps executed during variance calculation itself. The latter include:

Target cost calculation Actual cost splitting

Once you complete these steps, the R/3 System can calculate the variances. You can also run actual cost splitting independent of variance calculation. However, if you calculate variances, the R/3 System performs these steps automatically.

(C) SAP AG AC412 5-18

© SAP AG 2001

Actual Cost Splitting

MaHActual Costs:Actual Costs:(not assigned to activity type)(not assigned to activity type)-- Primary costsPrimary costs-- Secondary costsSecondary costs

COCO

SetH

Fixed Fixed -- variable?variable?

?

?

COCO

FIFI


What was the real cost of my activities?

Example: Salaries 10,000 Salaries 10,000

Actual costs in Cost Center Accounting are normally posted only to the cost center, and not to the combination 'cost center/activity type' (see unit on actual allocations). However, to calculate variance or the actual price, you need to distribute the actual costs to the activity types. In the actual data, you need to split these activity-independent costs among the activity types before the variance analysis.

The aim of splitting actual costs is to determine the total cost for the activity types. This is required for the variance calculation, which can be calculated for each cost element and activity type/cost center.

Actual costs are also split to enable a target/actual comparison when the costs are separated into fixed and variable portions.

Actual costs are automatically split into two steps. The system's internal process is described on the following slides.

(C) SAP AG AC412 5-19

© SAP AG 2001

Actual Cost Splitting per Cost Element

Cost Elements CCtr. Acty. Plan Costs Target Costs Actual Costs

430,000 - 10,000 fxd 10,000 fxd 10,000 ?

404,000 - - - 900 ?

415,100 - 12,100 ?10,000 variable 14,000 variable 12,100 variable

Actual Cost Splitting: First Step

Costcenter

Costcenter

CostcenterCost

center h

Costcenter h

Costcenter h

First Step:

Splitting according to target costs(per cost elementor cost element group)

=

Prerequisite:Activity-dependent

planning of thecost element

Consequences:Distribution to the activity type(s)

according to target costs:Fixed/variable ratio

as in plan

1.

2. 3. 4.

Operating rate

First splitting step: In the first step, the cost center's actual costs are divided up among the activity types according to the target costs per activity type. This step takes place for each cost element. Thus:

Primary costs are distributed according to target costs. [Ext.] Secondary costs are distributed according to target quantities, if these exist. If not, they are

distributed according to the target costs. If target costs do not exist for a cost element, costs are split according to the target costs of the assigned cost element group (in the customizing of the target version). All target costs of cost elements in this group are used for splitting. If no target costs exist for the entire group, the costs are split in the second step.

If a cost element has activity-dependent and independent planned costs, they are split and distributed to the activity type/cost center in the same ratio that they were planned. The actual costs that have been split to the cost center remain there for the second splitting step.

The actual costs (planned as activity-dependent) are distributed in fixed and variable portions in the same ratio as they were planned.

(C) SAP AG AC412 5-20

© SAP AG 2001

Actual Cost Splitting: Second Step

Actual Cost Splitting per Cost Element


430,000 - 10,000 fxd 10,000 fxd 10,000 ?10,000 fixed

404,000 - - 900?900 fixed

415,10010,000 14,000 12,100 variable

Prerequisite:existingactivity

-independentplanning of the cost element

or:no existing

-independentplanning of the cost element

Costcenter

Costcenter

CostcenterCost

center h

Costcenter h

Costcenter h

Second Step:

Splitting based onsplitting rules:

- Activity quantity- Statistical key figures- Capacity- Output...

orequivalence numbers

Consequences:splitting the actual costsamong the activity type(s)using splitting rules(actual fixed costs)

1.2. 3.

4.

A second splitting step is necessary if: No target costs or target quantities exist for the cost element or cost element group. In this case, there is no tracing factor for the split (for example, no planning for the cost element exists).

Activity-independent target costs (or quantities) exist. In this case, the portion of actual costs remains on the cost center, corresponding to the portion of activity-independent target costs (target quantities) of the total target costs (target quantities).

In the second step, the actual costs that remain in the cost centers are distributed to the activity types, according to splitting rules, which you can set up yourself. If no rules are defined, the cost center costs are divided up among the activity types, using equivalence numbers (similar process to that used for plan cost splitting).

(C) SAP AG AC412 5-21

© SAP AG 2001

Actual Cost Splitting: Result

Actual Cost Splitting / Cost Element


430,000 - 10,000 fxd 10,000 fxd 10,000 ?10,000 fixed

404.000 - - 900- 900 fixed

415,100 10,000 var. 14,000 var. 12,100 var.

TOTAL 20,000 24,000 23,000 (fixed/var.)

Costcenter h

Costcenter h

Costcenter h

Costcenter h

Result:all actual costs for the cost centerare assigned to the activity types...

Prerequisites for:1. Variance calculation/activity type2. Actual price calculation/activity type

The result of the second splitting step means that All cost elements in actual data are distributed to the activity types (if required). Plan or target costs are comparable to actual costs at the activity level.

The requirements for the variance analysis (and the actual price calculation) are filled.

Special case: Assigning activity types directly affects the actual cost split as follows. The system requires the correct and complete assignment of the costs to the activity types. Activity types that are directly assigned to an account are not included in the first splitting step. The system merely breaks the costs down into fixed and variable costs. In the second splitting step, the activity-independent costs are distributed to activity types that are directly assigned to an account.

(C) SAP AG AC412 5-22

© SAP AG 1999

Variance Calculation: Categories

Total Variance

Remaining Input Variance

Resource-Usage Variance

Input Quantity Variance

Input Price Variance

Input Side

Remaining Variance

Fixed-Cost Variance

Output Quantity Variance

Output Price Variance

Output Side

= Cost CenterBalance

+

Variance calculation is a tool that helps you analyze problematic variances. It enables you to compare actual costs and the allocated actual costs with the target costs. The following data is reported:

Variances on the input side (actual costs minus target costs) Variances on the output side (target costs minus allocated actual costs)

The sum of these variances is the total variance and therefore the balance of the cost center. This total arises when the debits to the cost center are not the same as the credits from the activity allocation (actual cost minus allocated actual costs).

System requirements for variance calculation Create target cost version

Determine the version from which the plan and actual data is read or in which the split actual costs and the variances are posted (in CO-OM only with version 0).

As an option, determine the cost element group on which actual cost splitting is based in the first step, and determine the variance variant on which variance calculation is based.

Create variance variant and assign it to the target cost version In the variance variant, you specify which variance categories you want the system to calculate. Variances belonging to variance categories that are not activated in the variance variant are reported as remaining variances.

(C) SAP AG AC412 5-23

© SAP AG 1999

Variance Analysis: Input Side


Plan CostsC (Plan)

Costs

Why have my actual costschanged in relation to thetarget costs?Variance on the input side

Target cost curve


415100 External acty. 12,100 14,000 -1.900404000 Replacement 900 900430000 Salaries 10,000 10,000* Debit 23,000 24,000 -1,000

619000 DILV Production -28,000 -28,000* Credit -28,000 -28,000


Plan Costs

10,000

10,00020,000

-20,000-20,000

0

Activity (hrs)100 hrs (plan) 140 hrs (actual)

Fixed costs10,000

100/hr variabel

Target Costs

Actual Costs

Prices?Quantities?

Structure?

Comparison of the target costs with the actual costs of the cost center: Variance categories on the input side

The input side includes the sum of all debits and some of the credits of the cost center. Credits such as repostings belong to the input side because they can be interpreted as a reduction in the costs of activity production. Credits due to activity allocations belong to the output side.

The variances on the input side are divided into the following variance categories: Price variances Quantity variances Resource-usage variances Remaining input variances

In order to calculate price and quantity variances, the system must know both quantities and costs. You will get a warning message while assigning quantities to an account if:

1. The corresponding indicator is selected in the relevant cost element and cost center, or 2. The quantity indicator is selected in cost element planning

The variance categories of the input side are then shown with cost elements.

(C) SAP AG AC412 5-24

© SAP AG 1999

Variances: Input Side

Category ResponsibilityTarget Actual

Input price variance

Input quantity variance

Resource-usage variance

Remaining input varianceMinor differences,other categoriesnot active

Cost elem.417.000

external?

internal?

internal?

Repairs

Input price variances result from changes in costs due to price fluctuations. Input price variances represent differences between target costs and actual costs due to discrepancies between the planned and actual prices of materials or services.

Input quantity variances result from under- and overconsumption of cost elements. These variances represent differences between target costs and actual costs caused by lower or higher quantities being consumed than were planned. Input price variances include variances caused by both price and quantity differences.

Resource-usage variances result from different inputs being used than were planned. A resource-usage variance will occur if you post an unplanned cost element in your actuals, or if no actual data exists for a planned cost element.

Remaining input variances are differences between target costs and actual costs that cannot be assigned to any of the above categories. Remaining input variances will occur if you deactivate one of the above variance categories in the variance variant. For many organizations, the remaining input variance category often represents the classical consumption variance (input quantity variance). Cost elements that react quickly to price changes are recorded by quantity, which ensures an exact calculation of input price variances and input quantity variances for these cost elements. For cost elements subject to only minimal price changes, the difference between actual costs and target costs can be traced to increased consumption. This procedure

(C) SAP AG AC412 5-25

reduces the requirements for entering plan and actual data, but lets you display results for individual cost elements.

(C) SAP AG AC412 5-26

© SAP AG 1999

Variance Analysis: Output Side


Target CostsActual Costs

Plan CostsC (Plan)

Cfix (Plan)

Costs (C)

Why were the expectedcosts not allocated?Variance on the allocation side

Prices?Quantities?

Fixed Costs?

Target credit

Target cost curve

Activity (hrs)100 hr (plan)

Fixed costs10,000

100/hr variabel


415100 External acty. 12,100 14,000 -1900404000 Replacement 900 900430000 Salaries 10,000 10,000* Debit 23,000 24,000 -1,000

619000 DILV Production -28,000 -28,000* Credit -28,000 -280,000


Plan Costs

10,000

10,00020,000

-20,000-20,000

0

140 hrs (actual)

Comparison of the target costs with the allocated actual costs of the cost center: Variance categories on the output side

The output side includes all debits from the activity allocations of the cost center. Allocated actual costs are compared with the target costs from the output side.

The variances on the output side are broken down into the following categories:

Output price variances

Output quantity variances

Secondary fixed-cost variances

Remaining output price variances

The output prices of the activity types can be managed by implementing the following:

Use of average prices; use of the capacity instead of the planned quantity in price calculation; use of manually set prices; difference between target credit and allocated actual costs that results from a variance between the actual activity and the allocated activity.

(C) SAP AG AC412 5-27

© SAP AG 1999

Variances: Output Side

Category DescriptionTarget Allocated

Output price variance

Output quantity variance

Fixed-cost variance

Remaining variance Minor differences,other categoriesnot active

Changed prices(such as manual price,average price)

Iterative Manual

Measured:4960 kwh

Allocated5000 kwh

Measured quantity≠ quantity of allocation(example: indirect activityallocation)

With operatingfluctuations:through proportioned fixed costs,allocated fixed costs too high or too low

14,000 var.14,000 fixed

140 hrs100 var.100 fixed100 hrs100 var.

100 fixed

10,000 var.10,000 fixed

An output price variance occurs if you use a price that differs from the plan price that is calculated iteratively each month based on planned activity. The target credit (= plan price times actual activity) therefore deviates from the actual credit (= allocated price times actual activity) of the cost center. An output price variance can occur in the following cases: - Average prices are used instead of period-based prices - Price calculation is based on the capacity of the activity type - A manual price is used

Output quantity variances result from discrepancies between target costs and allocated actual costs due to the use of allocated activity quantities which are not measured exactly on the sender cost center during allocation (indirect activity allocation). If the quantity can be measured exactly, it can be entered on the sender cost center and then compared with the allocated quantity. A difference results in an output quantity variance.

Fixed-cost variances occur when the actual operating rate varies from the plan operating rate and some of the planned fixed costs are either underabsorbed or overabsorbed due to the credit postings. The system only reports a fixed cost variance if the operating rate is not 100%.

Remaining variances are discrepancies between target costs and actual costs that cannot be assigned to any of the above categories. Remaining variances will be reported if you deactivate one of the input-side or output-side variance categories in the variance variant.

(C) SAP AG AC412 5-28

© SAP AG 1999

COCO--PAPA

Variance Analysis: Procedure

Target cost version and variance categories

Indicator: Record quantity


Activity planning and price calculation


Actual cost splitting

Variance analysis: Categories

Variance reports

Variances results

Variance Analysis

MMooddeell pprroocceedduurree ffoorr vvaarriiaannccee aannaallyyssiiss::

To analyze variances, you must first create a target cost version in Customizing that specifies a variance variant (determination and use of variance categories). Furthermore, the target cost version must be entered in plan version 0 where variances are posted for overhead cost controlling.

To determine quantity and price variances precisely, you should activate the indicator Record quantity for the corresponding cost elements and cost centers (or during planning).

After executing the planning, postings, and activity variances in the actuals, you can perform variance calculation. This automatically performs an actual cost split in order to bring all costs to the activity types.

You can execute variance analysis in the application, or after postings are made in the information system for individual costs centers or also cumulated for cost center groups.

The variances are not allocated further, but are normally posted to profitability analysis using assessment. If you want to perform subsequent adjustments of your variances to the receiver, then you must consider performing actual price calculation.

(C) SAP AG AC412 5-29

© SAP AG 2001

Describe the significance of actual price calculation and its procedures

Configure and execute actual price calculation.

Use the cost component split in Overhead Cost Controlling.

Describe revaluation at actual prices in Product Cost Controlling


Actual Price Calculation: Unit Objectives

(C) SAP AG AC412 5-30

© SAP AG 2001

Actual Price Calculation: Objective

Actual Price Calculation:Objective: Actual prices are to be calculated and, if required, borne by the activity receivers

Actual prices: What was the real cost of my activities?

Actual cost component split: What caused the changes in the actual prices?

Revaluation: Should the cost center variances be carried by the products or the receivers of the activities?

Act.

The actual prices are calculated during period-end closing, and revaluates the difference between the existing plan price valuation and actual price valuation. The revaluation can take place in your own data records, or by changing the previous allocation postings.

Cost and price planning (plan prices) are not necessarily required for actual cost allocation. The quantity flow is initially posted without valuation. The valuation with actual costs occurs at period-end by means of the actual price calculation.

Requirements for actual price calculation:

Processing the settings in the version for the actual price calculation and revaluation.

Setting the actual price indicator (for each activity type to be revaluated) to 5 or 6. For activity types that do not have this indicator, the system calculates a purely iterative actual price without revaluating the activity flows.

Activities that return to Cost Center Accounting through orders are also revaluated. This is only possible if the corresponding orders are settled periodically to cost centers.

Orders or projects (such as those in CO-PC) can also be revaluated if you trigger the revaluation from the corresponding application.

(C) SAP AG AC412 5-31

© SAP AG 2001

5000 kWh

10M

aH

50SerH

200 MaH

50 RueH

Production:Production:

Act. Costs:Act. Costs: 52,00052,000

2000 kWh 20 SerH

100 SerH

MaH

RueH

Activity Output:

Actual price indicator:5: Actual costs / actual activity or

6: Actual costs / capacity or

7: Manual actual price: No actual price

Actual Price Calculation

Energy:Energy:

Act. Costs:Act. Costs: 77,00077,000kWh

Service:Service:

Act. Costs:Act. Costs: 24,50024,500

SerH

Fixed/variable actual prices based on the split actual costs

During the actual price calculation, the system includes all the activity flows between cost centers and calculates the price iteratively by dividing the actual costs by the actual activity. The actual price is calculated as follows:

First, the primary costs are divided by the activity quantity. Using the resulting preliminary price, the system revaluates the activity input of other cost centers.

In the following steps, the calculated actual prices are used to valuate other activity flows in an iterative process, until the exact price for a cost center has been calculated.

Procedure for Price Calculation:

The price differs per period because the costs are divided by the activity quantity for each respective period. This method can yield different prices.

The cumulative price is calculated by dividing the cumulative costs of the current and previous periods by the cumulative activity quantities. This levels out price fluctuations during the fiscal year. Adjustment postings are made in the current period for allocations posted in previous periods. This method ensures that the sender cost center is fully credited at the end of each period. The cumulative price can only be used for actual data.

(C) SAP AG AC412 5-32

© SAP AG 2001

Actual Cost Component Split of the Prices

Plan CostsWages: 7,000Material: 10,000Depr.: 5,000Accruals: 3,000 ∑ 25,000

Activity: 25,000 kWh

Actual Costs:Wages: 12,000Material: 10,000Depr.: 5,000Accruals: 3,000 ∑ 30,000

Activity: 24,000 kWh

1.25 UNI

Act. price

1.00 UNI

Plan price

Cost CenterCost CenterEnergy:Energy:

Actual activity: 24.000 kWh

Cost Components:Personnel 7,000 (28%)Material 10,000 (40%)Fxd assets 5,000 (20%)Accruals 3,000 (12%)∑ 25,000

Cost Components:Personnel 12,000 (40%)Material 10,000 (33%)Fxd assets 5,000 (17%)Accruals 3,000 (10%)∑ 30,000

Planned activity: 25,000 kWh

Act.

The activity allocation to a receiver cost center means that many different cost elements can be represented by a single secondary cost element in one posting. Using the cost component split for activity price calculation enables the activity price to be clearly structured on the receiver. This is useful, for example, in determining the portion of personnel costs and depreciation costs included in the price. When this allocation is valuated at an actual price, the actual cost component split of the sender is transferred to the receivers in such a way that the receivers also have an exact component split of their activity. You can deactivate the component split for certain cost centers/activity types for actual data in the same way as in the plan cost component split. You do this by using the switch layout. This assigns the allocated costs to a new cost element. (See also slide in the unit on "Extended Planning Methods").

(C) SAP AG AC412 5-33

© SAP AG 2001



Revaluation of CO Objects using Actual Prices

Internal Orders

CostObject

Pro-duction

CostCollector

WBS Elements

Networks

ProjectsAct. price

Revaluation usingActual Price Calculation

Revaluation usingOwn Transaction

AT

Processes


ProductionOrderMaintenance

Order

When calculating the actual price you have the option to revaluate actual activities with actual prices. You can differentiate between the following revaluation options:

To revaluate cost centers, business processes, and profitability segments, you have to set the revaluation indicator in the version. The revaluation will then automatically occur during the actual price calculation. You have the following options when using this revaluation: The difference between the allocation valued at the plan and actual prices is posted under a separate data record (setting: 'with separate transaction').

The revaluation is updated in the original data record. You can use this approach if there are no plan prices, meaning the original allocation was not valued. (setting: 'original business transaction')

To revaluate internal orders, production orders, maintenance orders, WBS elements, networks, and so on, you have to use the revaluation transaction. The transaction can be found in the corresponding applications. The revaluation data is always stored in a separate record on the System data base. This enables you to compare the results of actual costing with those of standard costing.

Executing the revaluation using the actual price calculation and the revaluation transactions, means that the sender cost center can be fully credited.

(C) SAP AG AC412 5-34

© SAP AG 2001

Actual Price Revaluation: Result

Plan cost curve

C (Plan)

Cfix (Plan)

Costs (C)

C (Actual)Act. costs =Allocated

Actual Costs

Act. price = 164/h

Should the variancesbe carried by the

receivers?Total Variance = 0

New:Actual price

(fixed/variable)


415100 External activities 12,100 14,000 -1,900 404000 Spares 900 900430000 Salaries 10,000 10,000* Debit 23,000 24,000 -1,000

619000 DIAA Production -23,000 -28,000* Credit -23,000 -28,000

** Under/Overabsorption -4,0000 -1,000

Plan Costs

10,000

10,00020,000

-20,000-20,000

0

Activity (h)h (Plan) h (Actual)

C (Act. fxd)

The results of the revaluation transactions are shown in the above report. Here, the credits to the cost center, which were 28.000 UNI before, are reduced to 23.000 UNI. The original receivers have a credit calculated thus: consumed quantity x original price - actual price (here, 36.00/hour).

When all revaluation transactions are executed, the balance of the cost center will be reduced to 0. Thereby, all variances are passed on to the receiver.

The illustration clearly shows this. By adjusting the original allocated prices from 200- UNI to 164- UNI, the allocated costs now reflect the actual costs exactly.

You can analyze the variances of the cost center afterwards as well. The input variances remain unchanged in the variance analysis. Only one additional allocation price variance is stated, which is so high, that it brings the original total variance to 0.

Even if you do not want to execute any revaluations, the actual price calculation can support the actual price purely iteratively, if you set the corresponding indicator accordingly. If needed, you can contrast the various prices in the price reports.

No revaluation is executed for activity types with actual price indicators 5 or 6.

(C) SAP AG AC412 5-35

© SAP AG 2001

Actual Price Calculation: Procedure

Act. Actual Price CalculationActivate revaluation in version

original bus. trans. <-> own bus. trans.procedure for price calculation

Create activity typesSet actual price indicator to 5 or 6

Optional activity planning and plan price calculation


Actual cost splitting

Actual price calculation (and possibly revaluation)

Optional revaluation of orders

TTyyppiiccaall pprroocceessss ffoorr aaccttuuaall pprriiccee ccaallccuullaattiioonn//rreevvaalluuaattiioonnss:: If you want to execute revaluations for actual prices for the purpose of actual costing, you must activate the corresponding indicator and procedure in the version. You can also enter a cost component structure, which provides more detailed information on the composition of the actual prices.

When creating activity types that should be revaluated, you must activate either the price indicator 5 or 6, which differentiates itself only in the calculation of the fixed portion of the price (basis activity or capacity).

If you want to work with preliminary plan prices, or analyze fixed or variable including actual prices, then you must first execute an activity plan and an activity dependent cost plan.

If you do not want to execute any planning, you must at least maintain the cost center's planned activity with the corresponding activity type (create master records for combination cost centers/activity types). All quantitative preliminary allocations will then be executed without valuations.

As a requirement for the actual price calculation, you must execute the actual cost splitting or set the indicator 'actual cost splitting' in the basic setting for the price calculation.

If you want to revaluate your cost object at the end of the period, you must set this in the corresponding application.

(C) SAP AG AC412 5-36

© SAP AG 2001

Explain the business reasoning behind marginal cost allocations in CO-OM

Describe the concept of and procedure for predistribution of fixed costs

Configure and use the predistribution of fixed costs in overhead cost controlling

Explain what needs to be considered for special cases of predistribution of fixed costs.


Marginal Costs: Unit Objectives

(C) SAP AG AC412 5-37

© SAP AG 2001

Marginal Costs: Objective

Marginal CostsObjective: No proportional allocation of fixed costs in overhead cost controlling

Activity types with predistribution of fixed costs:What is the cost of an additional activity unit (marginal costs)?

Predistribution of Fixed Costs: Should fixed costs be allocated in blocks?

Variance analysis: What effect does the predistribution of fixed costs have on my cost center results?

Marginal costing is a relatively modern cost accounting system, that does not consider fixed costs in fair cost allocations. The fixed costs should not be allocated proportionally because they do not increase with increases in activity, but are dependent on time. The focus of marginal costing is more on variable costs, which can change at short notice, depending on the activity quantity. Marginal costing can support concept decisions such as 'make or buy', or clarify short term lower price limits.

There are several ways of assigning fixed costs by cause:

A source-related assignment of fixed costs can, for example, be required on different hierarchy levels, such as company codes, plants, product groups, or the cost centers who requested or planned the corresponding activity input.

This problem can be resolved in Cost Center Accounting by predistributing fixed costs.

Senders of activity types with predistributed fixed costs can be cost centers. Receivers of predistributed fixed costs can also be cost centers and business processes. You cannot used plan integrated orders or projects as receivers for this. However, if these are to be settled to a cost center in the planning data, then fixed costs are predistributed to the receiving cost center.

(C) SAP AG AC412 5-38

© SAP AG 1999

Predistribution of Fixed Costs: Planning

60 h

40 h

What is the costof an additional

activity unit?(marginal cost)

predistributefixed costs

ProgramProgram--mingming


CustomerCustomerServiceServicePlan Credit: 100 h

Fixed VariableProd. - 600 - 1,800/ 60hCust. serv.- 400 - 1,200/ 40h

Plan Debit: 60 h

Fixed VarProgram. 600 1,800

Plan Debit: 40 h

Fixed VarProgram. 400 1,200

10 fixed30 var.

For exact predistribution of fixed costs, you need a reconciled plan that calculates the fixed and variable cost portions of prices.

You can do this by selecting the indicator predistribution of fixed costs for the activity types in the master records or the planning, and plan as described in the unit Advanced Planning Techniques.

It is important to do the planning as activity dependent for specific costs or activity consumption because this is the only way to calculate the variable portion of the price.

To complete the planning, you need to execute plan reconciliation, plan cost splitting, and plan price calculation.

The illustration shows an example of a plan that has been reconciled with a sender and two activity receivers. As can be seen, the activity input in programming hours consumed by the receivers is completely variable. The price of the activity (10 fixed and 30 variable) is debited to the receivers in the same proportions.

(C) SAP AG AC412 5-39

© SAP AG 1999




Predistribution of Fixed Costs: Actual Activity Allocation

80 h * 30 var.

30 h * 30 var.

Plan Credit: 100 hFixed Variable

Prod. - 600 - 1,800/ 60 hCust.Serv. - 400 - 1,200/ 40h

Plan Debit: 60 hFixed Variable

Progr. 600 1,800/ 60 h


Progr. 400 1,200/ 40 h

Actual Credit: 110 h

Prod. - 2,400/ 80 hCust.Serv. - 900/ 30 h

Actual Debit: 80 h

Progr. 2,400/ 80 h

Actual Debit: 30 h

Progr. 900/ 30 h

predistributefixed costs10 fixed

30 var.

If the predistribution of fixed costs indicator is selected for an activity type, only the variable costs (variable prices multiplied by activity quantities) are debited to the receiver cost centers. Likewise, the sender cost center is credited only with its variable costs.

In the above example, the actual quantity flows are multiplied only with the variable activity price, and the result debited to the receivers and credited to the sender. The planned fixed costs of the sender cost center are not allocated at this point. This approach debits the receiver cost centers Customer Service and Production only with the additional units of costs (marginal or variable costs) of 30 UNI. The cost center for programming carries its own fixed costs.

(C) SAP AG AC412 5-40

© SAP AG 1999

Actual Debit: 30 h

Program. 900/ 30 h

Actual Debit: 80 h

Program. 2,400/ 80 h

Plan Credit: 100 hVariable

Prod. - 1,800/ 60 hCust.Serv. - 1,200/ 40 h

Actual Credit: 110 h

Prod. - - 2,400/ 80 hCust.Serv. - - 900/ 30 h




Predistribution of Fixed Costs: Transaction

10 fixed30 var.

600

400

- 600- 400

- 600- 400

Fixed



Program. 600 1,800/ 60 h


Program. 400 1,200/ 40 h

The predistribution of fixed costs transaction distributes the plan fixed costs as actual fixed costs to the cost centers that planned the corresponding activity inputs.

To predistribute the fixed costs, you must first complete planning. Predistribution is then executed with separate transactions for certain cost centers or cost center groups, or for the entire controlling area. It can also be executed within plan price calculation if the corresponding indicator is set.

In a predistribution scenario, you define the plan fixed costs in version 0 for each sender activity type of a cost center, and then distribute these costs as actual costs to the cost centers that planned the activity inputs.

Predistribution is based on the assumption that, in a reconciled activity plan, sender cost centers provide activities only because receiver cost centers have planned those activity requirements.

Predistribution of fixed costs ensures that costs incurred through additional capacity becoming available are not allocated on the basis of the operating rate.

If you use predistribution of fixed costs, you can avoid fixed-cost variances. Predistribution of fixed costs transfers the fixed costs of the plan credits and debits to actual postings. This guarantees that plan fixed costs are covered regardless of the operating rate.

(C) SAP AG AC412 5-41

© SAP AG 1999

Predistribution of Fixed Costs: Special Cases in Actuals

Orders,Projects

(plan-integrated)Order:Actual: 60 h * 40 total

No plan consumption:Actual: 10 h * 30 var.


HumanHumanResourcesResources

Actual Credit: 70 h

Personnel - 300/ 10 hOrder -600 -1,800/ 60 h

Actual Debit: 10 h

Program. 300/ 10 h

Actual Debit: 60 h

Program. 600 1,800/ 60 h

10 fixed30 var.


Plan Credit: 50 hFixed Variable

Personnel -0 -0 / 0 hOrder -500 -1,500/ 50 h

No plan debit:Fixed Variable

Program. 0 0/ 0 h


Program. 500 1,500/ 50 h

0

-0

The following cases may arise in the predistribution of fixed costs: 1. If the receiver of the activity is a cost center, activity allocation allocates only the variable costs. This is true regardless of whether the cost center has planned activity input as activity-dependent or activity-independent, or whether it has planned no activity input at all. When predistribution is executed, only the fixed costs are allocated to the receiver that planned an activity input, regardless whether the input is activity-dependent or not. Receiver cost centers that have not planned activity inputs are therefore debited only with the variable costs.

2. If the receiver is a cost object - such as an order or project - it is debited with the full costs (fixed and variable price multiplied by the activity quantity). (See the special case "backflow" in the next slide.)

(C) SAP AG AC412 5-42

© SAP AG 1999

Order(plan-integrated)

Input:Plan 10 hActual 20 h

Plan costs100 + 300

Actual costs:

+ 200 + 600

- 200 + 600

Predistribution of Fixed Costs: Backflow

Cost Center 1:Cost Center 1:

Activity:Activity:Plan:Plan: 10 h10 hActual:Actual: 20 h20 h

Credit:Credit:

Plan:Plan:FxdFxd Var.Var.-- 100100 -- 300300

Actual costs:Actual costs:FxdFxd Var.Var.-- 100100-- 200200 -- 600600

+ + 200200

Cost center 2Cost center 2

Input:Input:PlanPlan 10 h10 hActualActual 20 h20 h

Plan costsPlan costs+ + 100100 + + 300300

Actual costs:Actual costs:

+ + 100100

+ + 600600

2. Plansettlement

3. Predistrib.of fixed costs

4. Activityallocation

5. Actual settlement (backflow)

1. Activityinput

5. Actual Settlement

10 fixed30 var.


Plan-integratedorder settlesto cost center

Special case: Fixed-cost backflow for plan-integrated orders that settle to cost centers Orders and projects in integrated planning cannot be used as receivers in fixed-cost predistribution. Such orders and projects are always debited with fixed and variable costs in activity input planning and in actual activity allocation.

However, if you settle plan-integrated orders to a cost center in your planning, fixed costs are predistributed to the receiver cost center. As a result, the receiver cost center is already debited in the actuals with fixed costs that will also be debited to the plan-integrated order during actual activity allocation. When orders are settled in the actuals, the system moves these excess fixed costs back to the sender (backflow) during activity allocation. To ensure that this posting occurs in the correct period, settlement must be period-based for the affected orders.

(C) SAP AG AC412 5-43

© SAP AG 1999

Predistribution of Fixed Costs

C (Plan)

Cfix (Plan)

Costs (C)

Quantity (x)x (Plan)

Allocatedcosts = target costs

Actual costsPlan costs

x (Actual)

Variable

plan price

= 100/h

Fixed Cost Block

Allocated Variable Costs

Costs Not Allocated

Allocated using actual quantity times variable

prices

Allocated using predistribution of

fixed costs

Elimination ofover- or underallocated

fixed costs

Target Cost Curve

The illustration shows the allocation of a cost center with an activity type that takes part in predistribution of fixed costs.

In contrast to allocation without predistribution of fixed costs, activity allocations credit the cost center only with the variable price (100 UNI).

If fixed costs are predistributed, the fixed cost block also can be allocated to the receiver in the amount planned.

In contrast to allocations without fixed-cost predistribution, therefore, fluctuations in the operating rate do not affect the amount of fixed costs allocated: the allocated fixed costs are always the planned fixed costs. (Shaded area above is not allocated)

There are no fixed-cost variances.

In the textbook case where the allocated quantity equals the actually measured quantity, and using constantly allocated iterative plan prices, the allocated costs equal the target costs.

(C) SAP AG AC412 5-44

© SAP AG 2001


Do not set indicators for predistribution of fixed

costs or actual prices

Activity planning, plan reconciliation and price calculation

Activity allocation (variable prices)

Optional predistribution of fixed costs

Optional variance analysis

Variances via result

Marginal Cost Allocation: Procedure

Marginal Costs

IIddeeaall ttyyppiiccaall pprroocceedduurree ffoorr mmaarrggiinnaall ccoossttiinngg aallllooccaattiioonnss iinn oovveerrhheeaadd ccoosstt ccoonnttrroolllliinngg:: When you create the activity types, you need to the indicator for predistributed fixed costs in the corresponding activity types. You should not set the "Actual" price indicator because a predistribution of fixed costs contradicts an actual price calculation in the system. You should try to plan activity-independent and especially activity-dependent costs as precisely as possible. This ensures exact iterative plan prices with fixed and variable components. Before the price calculation, you should make sure that the activity input quantities from the senders tie in with the activities of the sender by using automatic plan reconciliation. Only variable prices are used for activity allocation between cost centers. Predistribution of fixed costs (which you also trigger from the plan price calculation) enables you to allocate the planned fixed costs using the same actual value to the receivers. If you wish to analyze variances, start the automatic variance calculation. No fixed cost variances are displayed there. There may be too many or too few fixed costs allocated to the orders integrated in the remaining variance.

(C) SAP AG AC412 5-45

© SAP AG 1999

Analyze and evaluate standard reports such as plan/actual comparisons

Explain the limitations of plan/actual comparisons

Explain the application goals and possibilities of the enhanced R/3 analysis and allocation tools


Period-End Closing: Unit Summary

(C) SAP AG AC412 5-46

Period-End Closing: Exercises

Unit: Period-End Closing: Allocations and Analysis Topic: Target Costs, Variances, and Actual Prices


• Analyze standard reports such as plan/actual comparisons

• Describe how target costs are updated

• Configure and use the variance analysis function

• Analyze variance categories

• Explain the concept of actual price calculation, and configure and use the function for revaluation at actual prices

Which analysis tools are most appropriate depends on your cost management goals. You can choose your analysis tools after learning about advanced planning and the methods for transaction-based and periodic actual costs and activity allocations.

• You will use the repair cost center REP## to decide which analysis tools will provide you with the information you need for cost center analysis in overhead cost controlling. You will run a number of different scenarios that will provide you with various types of information and results.

1 Target Cost Analysis

1-1 Preparation: In your user settings, delete group H_TECH## from the cost center group, and enter cost center REP## instead.

1-2 Check the planned costs

No actual costs have been posted to your cost center REP## for the current period. View the planned values by going to cost element planning (version 0, current period, cost center REP##, activity type * [=all], cost elements 400000 – 699999, free entry).

Which three cost elements have been planned up to now? What values were planned for these cost elements?

For which cost element did you set the record quantity indicator?

(C) SAP AG AC412 5-47

Cost center: REP## for the current period:

Activity Type

Cost Element

Fixed Plan Costs

Variable Fixed Qty

Variable Unit Q

(If the field for activity type is blank (or #), then activity-independent/fixed was planned.)

Compare your plan with the solution, and change the values if needed.

1-2-2 Analyze the planned output of your cost center REP## in the planning of the activity output.

What activity quantities (activity type *) were planned in the current period?

What price did you calculate earlier for this quantity (the price was automatically transferred into the planning during price calculation)?

What activity quantity was scheduled?

Compare this with the value in the solutions and make changes if necessary.

Cost center REP## in the current period:

Activity Type

Planned Activity

Fixed Price Variable Price Scheduled Activity

REPH##

1-2-3 Analyze cost center REP## using the target/actual comparison report in the information system.

Have any actual costs been posted?

Have any activities been output during the period?

Interpret the target costs using the known values.

Interpret the plan costs using the known values (go to the next page in the report).

(C) SAP AG AC412 5-48

Cost center: REP##

Interpretation:

Actual costs:

Actual activity:

Target costs:

Plan costs:

1-3-1 From sender cost center REP##, allocate 140 hours of activity type REPH## to cost center PC## using direct activity allocation (since the activity type is of activity type category 1). Perform the allocation in the screen variant cost center with list entry.

1-3-2 Analyze the target costs again for cost center REP##.

How high are the target costs on the debit side (previously 10,000), since the operating rate is 140%?

How did the system calculate this?

Cost center REP##, current period

Target costs:

Calculation:

1-3-3 Now post the actual costs of cost center REP## in component FI. Use the current date and choose the screen variant with cost center and quantity. For the tax code, select V0 (without tax). Don’t forget to enter the quantity 110 h in the detail screen of cost center 415100.

To simplify entry, you can use account assignment template AC412b and just change the cost centers to your number ##.

(C) SAP AG AC412 5-49

G/L Account

Debit/Credit Indicator

Amnt Tax Cost Center

Qty Unit

404000 Debit 900 V0 REP##

415100 Debit 12,100 V0 REP## 110 H

430000 Debit 9,000 REP##

470000 Debit 1,000 V0 REP##

113100 Credit 23,000

Compare all your numbers before you post.

1-3-4 You have now recorded your costs for the entire period, and you want to analyze the efficiency of the cost center using the target/actual comparison report. Analyze the balance of cost center REP##, the plan/actual variance, and the target/actual variance for the input side. Then answer the following questions:


Plan/actual variance: ________% Assessment: favorable / unfavorable

(2nd page in report)

Target/actual variance: _________% Assessment: favorable / unfavorable

________________________________

Underabsorption / overabsorption: _____________

(How much more or less was allocated than the cost center was actually debited?)

2 Variance Analysis

2-1 Run variance analysis for the current period for your cost center group H_TECH as an update run (not a test run).

How meaningful is the total variance for your cost center and activity types?

(C) SAP AG AC412 5-50

___________________________________________________

In your opinion, which variance side provides the best information to assess the efficiency of a cost center?

___________________________________________________

Save your variances (if they were not saved automatically in the update run). We will now analyze the variances in the information system.

2-2 In the Cost Centers: Variances report, analyze the variances of your cost center group H_TECH## for the current period.

Use variation to go to cost center REP##. Write down the corresponding figures in the following table. Indicate whether the variances are favorable or unfavorable.

Optional: Briefly indicate the reason for the variances (a detailed explanation is given in the solution).

Target/actual variance: (Input Side Variance)

Favorable / Unfavorable

Categories (go to page 3 of the report)

Input side Amount:

(Cost element)

Resource-usage variance:


Price variance: Favorable / Unfavorable

Quantity variance: Favorable / Unfavorable

Output side Amount: Reason:

Fixed-cost variance:

(C) SAP AG AC412 5-51

3 Actual Price Calculation: You now want to calculate actual prices for your entire cost center group, and revaluate the previous activity allocations.

3-1 Look at the settings for revaluation in the settings for the version by fiscal year (Customizing). Was revaluation activated?

3-2 Execute actual price calculation only for your cost center group H_TECH## as an update run and without business processes. Choose the current period only. Post the price calculation and then exit. You analyze the results in the information system.

3-3 Analyze the prices in the price report of the information system. Check how close the actual prices were to the planned prices. Run the price report only for the current period for cost center group H_TECH##. Before you run the report, ensure that the prices are displayed in price unit 1 and that only the prices used for allocation are displayed.

For a better overview, sort the report by the three columns cost center, activity type, and price indicator (ascending).

Cost Center Activity Type Plan Price (PI 1/2) Actual Price (PI 5/6)

CHIP## MAH##

ENER## ENH##

PC## MAH##

PC## SETH##

QUAL## QUAH##

REP## REPH##

3-4 Go to the target/actual variance report and look at the actual balances for the current period for your cost center group (H_TECH##). Go to each cost center using variation. Look at the balances of the cost centers. What do you notice?

Cost Center Balance If balance is not zero, the reason for this

ENER##

QUAL##

REP##

PC##

(C) SAP AG AC412 5-52

CHIP##

(C) SAP AG AC412 5-53

Period-End Closing: Optional Exercises

Unit: Period-End Closing: Allocations and Analyses Topic: Predistribution of Fixed Costs


• explain the concept of predistribution of fixed costs in the R/3 Controlling

• execute the predistribution of fixed costs

• conceptualize and use a scenario involving activity types with predistributed fixed costs

• analyze variances that can stem from predistributed fixed costs

After explaining and using various scenarios for period-end closing, you want to discuss the advanced applications available through the predistribution of fixed costs.

• To clarify the concept of this form of marginal cost allocation (namely, predistribution of fixed costs), answer the following questions. More than one answer is possible for each example.

1-1 Predistribution of Fixed Costs: Planning

Which of the following points indicates a planning scenario with predistributed fixed costs?

A) The activity types should have indicator Predistributed fixed costs set.

B) You cannot plan prices (PI 3) manually.

C) The planning should be reconciled.

D) For the price calculation, you definitely need to set the indicator With predistribution of fixed costs.

E) You can only set the indicator Predistributed fixed costs for activity type category 1.

A) Correct

B) Incorrect

C) Correct

D) Incorrect

E) Incorrect

(C) SAP AG AC412 5-54

1-2 Predistribution of Fixed Costs: Cost and Activity Allocations in Actual

A) Activity allocations of activity types with predistributed fixed costs are valued in the cost center only with the variable price portion.

B) The transaction predistribution of fixed costs allocates fixed costs in the actual to the receiver cost center just as they were planned there as activity inputs (in blocks).

C) The transaction predistribution of fixed costs allocates fixed costs in the actual to the receiver orders just as they were planned there as activity inputs (in blocks).

D) You can revaluate the variably allocated activity quantities with the actual price calculation using variable actual prices.

E) The target=actual activity allocation cannot be combined with the predistribution of fixed costs.

A) Correct

B) Correct

C) Correct

D) Incorrect

E) Incorrect

1-3 Predistribution of Fixed Costs: special cases

A) Orders that are integrated into the plan can generally take part in the predistribution of fixed costs.

B) Only those order integrated into the plan, which are settled to a cost center support the concept of predistribution of fixed costs.

C) Cost centers that have no planned activity input are generally debited with full costs, even when the activity input in actual contains an activity type with preditributed fixed costs.

D) Cost centers that have no planned activity input are generally debited only with variable costs, even when the activity input in actual contains an activity type with preditributed fixed costs.

A) Incorrect

B) Correct

C) Incorrect

D) Correct

1-4 Predistribution of Fixed Costs: Description

(C) SAP AG AC412 5-55

A) The predistribution of fixed costs allows you to carry out marginal cost allocations (allocations for variable cost portions are valued) between cost centers.

B) The predistribution of fixed costs hinders the (variance category) fixed cost variance.

C) The sender fixed costs must be further allocated periodically to the receiver cost center (through the predistribution of fixed costs).

D) The predistribution of fixed costs provides information regarding costs that arise for additional activity units of a cost center (marginal costing).

E) The predistribution of fixed costs is especially useful when you want to avoid fixed costs variances in the service cost centers. Without predistribution of fixed costs, activity allocations with proportionalized service cost centers (especially operational fluctuations) can lead to incorrect over or under allocations of fixed costs.

A) Correct

B) Correct

C) Incorrect

D) Correct

E) Correct

(C) SAP AG AC412 5-56

Period-End Closing: Solutions

Unit: Period-End Closing: Allocations and Analysis Topic: Target Costs, Variances, and Actual Prices

1 Target Cost Analysis

1-1 Preparation: User Settings

CCA: Information System > User Settings

Basic data: Remove cost center group H_TECH##

Enter cost center REP##

1-2 Check the planned costs

CCA: Planning > Cost and Activity Inputs > Change

Layout: 1-101

Version: 0


Cost center: REP##

Activity type: *

Cost element: 400000 to 699999

Free entry

Overview

Cost center: REP## for the current period:

Activity Type

Cost Element

Fixed Planned Costs

Variable Fixed Qty

Variable Unit Q

430000 9,000

470000 1,000

REPH## 415100 - 10,000 - 100 h X

If the field for the activity type is empty, then the planning data is activity-independent (only fixed). Check your plan against the solution and make changes if necessary.

The total planned cost is 20,000 UNI. Wages (430000) and office/building costs (470000) are fixed. The external activities (415100) are variable. External activities are given a

(C) SAP AG AC412 5-57

variable quantity whose indicator Q together with unit h causes the system to issue a warning during actual postings to enter a quantity for account assignment. There are therefore a total of 10,000 in fixed costs and 10,000 in variable costs planned.

1-2-2 Analyze the activity output

CCA: Planning > Activity Output/Prices > Change

Version: 0


Cost center: REP##

Activity type: *

Overview

Cost center REP## in the current period:

Activity Type

Plan Activity

Fixed Price Variable Price Scheduled Activity

REPH## 100 h 100 100 100 h

The price should have been calculated automatically by the price calculation function in the exercise on planning (PI=1):

Fixed cost / Plan activity = Fixed price: 10,000 / 100 h = 100/h fixed

Variable cost / Plan activity = Variable price: 10,000 / 100 h = 100/h variable

Compare your results against the solution and make changes if necessary.

1-2-3 Target/Actual Comparison Cost Center REP##

CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Cost Centers: Target/Actual Variance

Version: 0


Cost center: REP##

Execute

Cost center: REP##

Interpretation

Actual cost: 0

Actual activity: 0 h

Target cost:

10,000 Since the operating rate = 0: all plan fixed costs

(Comparison costs if there is zero output)

Plan cost: 20,000 All fixed and variable plan costs

(C) SAP AG AC412 5-58

(see next page of report on right-hand side)

1-3-1 Activity Allocation

CCA: Actual Postings > Activity Allocation > Enter

Choose the screen variant Cost Center

Choose the list variant

Sender: REP##

Sender activity type: REPH##

Quantity: 140 h

Receiver cost center: PC##

Save

1-3-2 Target costs of cost center REP##

CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Target/Actual Variance:

Version: 0


Cost center: REP##

Execute


Target cost: 24,000

Calculation: 10,000 fixed plan cost + 10,000 var. plan cost * oper. rate 140%

The target costs only changed for cost element 415100, since this item was planned as variable or activity-dependent.

1-3-3 Actual costs of cost center REP##

Accounting > Financial Accounting > General Ledger > Document Entry > Enter G/L Account Document

Enter

Document date: today’s date

Choose: Screen variant: With cost center and quantity

Enter the indicated values in the posting screen. If desired, choose account assignment template AC412b and replace the cost center numbers with your number ##.

(C) SAP AG AC412 5-59

G/L Account

Debit/Credit Indicator

Amount Tax Cost Center

Qty Unit

404000 Debit 900 V0 REP##

415100 Debit 12,100 V0 REP## 110 H

430000 Debit 9,000 REP##

470000 Debit 1,000 V0 REP##

113100 Credit 23,000

Before saving, make sure that all values are correct. Then choose: Post

1-3-4 Target/Actual Comparison of Cost Center REP##

CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Target/Actual Variance:

Version: 0


Cost center: REP##

Execute

Cost center REP##, current period Plan/actual variance: +15% Assessment: favorable / unfavorable

(2nd page in report) 15% higher actual costs than planned

Target/actual variance: -4.17 % Assessment: favorable / unfavorable

4.17% lower actual costs than target costs

Underabsorption/overabsorption: -5000 (allocation was 5,000 higher than the actual cost debit)

(C) SAP AG AC412 5-60

2 Variance Analysis

2-1 Variance analysis for cost center group H_TECH##

CCA: Period-End Closing > Single Functions > Allocations > Variances

Version: 0

Time period: Current period and fiscal year


UPDATE RUN

Execute

The variances are saved automatically since it is an update run.

The total variance does not say anything about efficiency, since it is only a comparison of the actual costs against the allocated actual costs (underabsorption/overabsorption of the cost center).

The variances on the input side provide the most detailed information.

(We will now analyze these variances in the information system.)

2-2 Report Cost Centers: Variances for cost center group H_TECH##

CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Variance Analysis > Cost Centers: Variances

Version: 0



Execute

Choose cost center REP## using the variations.

(C) SAP AG AC412 5-61

Target/actual variance: (Input side variance)

- 1,000

- 4.17%


Total actual costs lower than target costs

Categories (go to page 3 of the report)

Input Side Amount (cost element)

Resource-usage variance:

+ 900

(404000 replacement)


Unplanned consumption of replacement parts

Price variance: + 1,100

(415100 external activities)


Price increase for additional purchase of external activities: Plan: 100 h at 100.00 per h Actual: 110 h at 110.00 per h (posting 12,100 with qty 110 h) 10.00 price variance * 110 h = price variance of 1,100.

Quantity variance: - 3,000

(415100 external activities)


100 h were planned as variable external for a planned activity of 100 repair hours. The actual consumption, however, was 140 h, so the target quantity for the repair would be 140 h. But only 110 h were actually consumed (at a planned price of 100.00). -30 h * 100.00 = -3,000.00 quantity variance

Output side Amount Reason:

Fixed-cost variance: - 4,000 (Theoret.) Allocated costs were too high because of transaction-based allocation with proportionalized prices.

Output 140 h * 100.00 fixed

+ 140 h * 100.00 variable

= 28,000.00 allocated actual costs - 24,000.00 target costs

As with the target costs, the

(C) SAP AG AC412 5-62

fixed costs should not have been multiplied by the quantity when they were allocated to the receiver (does not apply to predistribution of fixed costs).

3 Actual Price Calculation

3-1 Settings for Revaluation

IMG: Controlling > General Controlling > Organization > Maintain Versions

Version: 0 (select)

Settings by fiscal year (level 5)

Current year Double-click

Revaluation: “Own business transaction” is activated

3-2 Actual price calculation for cost center group H_TECH##

CCA: Period-End Closing > Single Functions > Price Calculation


Time period: Current period in fiscal year

No business processes

UPDATE RUN

Execute

Exit price calculation after making the posting.

(Results are analyzed in the information system)

3-3 Price report in the information system

CCA: Information System > Reports for Cost Center Accounting > Prices > Cost Centers: Activity Prices:


Period: Current

Price unit: 1

Select: Display only the prices used for allocation

Execute

Choose:

Process > Sort Ascending >

Choose in this order:

Cost center, activity type, price indicator (all ascending: 1st button)

(C) SAP AG AC412 5-63


Plan Price (PI 1/2) Actual Price (PI 5/6)

CHIP## MAH## 234.39 205.63 (233.94**)

ENER## ENH## 0.17 0.16 (0.15**)

PC## MAH## 151.84 133.66 (132.31**)

PC## SETH## 190.91 173.08

QUAL## QUAH## 193.33 162.50

REP## REPH## 200.00 164.29** The values in parentheses apply only to periods 6 to 9

3-4 Target/Actual Variance Report for Cost Center Group H_TECH##

CCA: Information System > Reports for Cost Center Accounting > Target/Actual Comparisons > Cost Centers: Target/Actual Variance


Period: Current

Execute

Go to the single value using the variation.

Cost Center Balance If balance not zero, reason

ENER##

3,642 (3,060**)

Special case: Cost center is not fully credited because the actual price is calculated based on the capacity.

(Fixed preparation costs should not be fully allocated to the receivers)

QUAL## 0

REP## 0

PC## -23,602 (-25,222**)

Will be 0 if the cost object (order AC412) is revaluated at actual prices.

CHIP## -9,204 (-144**)

Will be 0 if the cost object (order AC412) is revaluated at actual prices.

** The values in parentheses apply only to periods 6 to 9

(C) SAP AG AC412 5-64

Solutions to Optional Exercises

Unit: Period-End Closing: Allocations and Analyses Topic: Predistribution of Fixed Costs

1-1 Predistribution of Fixed Costs: Planning

A) Correct

B) Incorrect

C) Correct

D) Incorrect

E) Incorrect

1-2 Predistribution of Fixed Costs: Cost and Activity Allocations in Actual

A) Correct

B) Correct

C) Correct

D) Incorrect

E) Incorrect

1-3 Predistribution of Fixed Costs: special cases

A) Incorrect

B) Correct

C) Incorrect

D) Correct

1-4 Predistribution of Fixed Costs: Description

A) Correct

B) Correct

C) Incorrect

D) Correct

E) Correct

(C) SAP AG AC412 5-65


© SAP AG 2001

Summary


Advanced Planning Methods




© SAP AG 1999


Differentiate between the various controlling concepts regarding areas of responsibility in R/3

Configure and use the advanced functions for planning and activity allocation

Analyze information and effects of various cost accounting systems in overhead cost controlling

Course Objectives


© SAP AG 1999

Recommended Follow-Up Courses

AC420 - Activity-Based Costing

AC505 - Product Cost Planning

AC605 - Profitability Analysis


© SAP AG 1999

Recommended Exercises

Repeat the exercises with the IDES or your own data

Read the online documentation

Read the IMG documentation

Read the release notes


© SAP AG 1999

Optional: Account assignment to activity types

Planning: Calculation of variable secondary costs

Important system settings in customizing

Contents:

Appendix


© SAP AG 1999


HRHR

ActivityType

Actual ActivityActual Costs

Plan priceMMMMCOCO

FIFI

Optional: Activate Activity Type as Account Assignment Object

It is possible to directly assign costs to the activity type of a cost center when actual postings are made. You can use an activity type as an account assignment object in the following application areas:

Purchase requisitions, purchase orders, GR/IR, reposting of costs, reposting of line items, activity allocation, reposting of activity allocation, payroll (time sheets), depreciation (activity type in master data of asset), periodic repostings, assessments, indirect activity allocation

Note that costs assigned to activity types are not included in later distributions. The direct assignments of costs to activity types has an effect on actual cost splitting (see unit on period-end closing). The system assumes that the costs assigned directly to the activity types were assigned correctly and in full. Therefore, activity types to which costs were assigned directly are not included in the first splitting step. The system merely breaks the costs down into fixed and variable costs. In the second splitting step, the activity-independent costs are apportioned to the activity types to which costs were assigned directly.

To be able to assign costs to activity types, you must go to maintenance of the controlling area in Customizing (under General Controlling - Organization - Maintain Controlling Area) and select the indicator Account assignment: activity type active in the step Activate components/control indicators.

To assign activity types to accounts during G/L account posting in FI, specify the activity type as an entry field in the field selection strings for the corresponding G/L accounts and in the posting keys.


© SAP AG 2001

Planning: Calculation of Variable Secondary Costs

Consumption (receiver)

Fixed

Price(Sender)

Variable

Total: 100/ h

Fixed: 50 h Total: 100 h

Fixed

Fixed

Fixed: 50/ h

Fixed (receiver) Variable (receiver)

Variable (sender)

Fixed (sender)

Receiver consumes 50 h (fixed)

variable costs of sender→ Fixed costs of receiver

Receiver consumes50 h (variable) of

fixed costs of sender→ Fixed costs of receiver

Variable price (sender)multiplied by variable consumption (receiver)

→ Variable costs of receiver

When activity quantities are incurred (regardless of the activity input level provided by the receiver cost center), you enter a fixed activity input quantity. Calculating the fixed debit for the receiver cost center enables you to set the variable portions of the sender costs to "fixed" for the receiver. The fixed debit of the receiver is the sum of the following:

The total activity quantity multiplied by the fixed price

The input of fixed activity quantity multiplied by the variable price

The quantitiy of the activity type (that you entered as a variable activity input) keeps the variable and fixed cost portions of the sender.

For this reason, the variable debit of the receiver cost center corresponds to the variable activity input multiplied by the variable price.


© SAP AG 1999

System Settings / Customizing I

Version / Fiscal Year Settings:Purely iterative pricePlan: Period Price <> Average PriceActual: Period Price <> Cumulative PriceRevaluation / Business TransactionsCost Component Structure in CO Overhead Cost Controlling

Controlling Area / Control Indicators:Activity type is account assignment object (optional)

Activate in controlling areaFI: Activate in field status variant and posting keys

Variances (transaction-based posting of price variances in CO)Maintain Planner Profiles

Authorizations, distribution keyMaintain planning layout


© SAP AG 1999

System Settings / Customizing II

Indicator: Record quantityDefault value in cost center and cost element

orSet indicator for planning combination

Target cost versionControl costs: version 0Define variance categories in variance variantDefine cost element groups for first split of actual costs

Splitting structureCreate structure

Assign rule: for example, based on activity quantity, activity-dependent statistical key figures, capacity, and so onAssign cost centers

Alternative: Equivalence numbers in activity type planning


Cost Element List

Cost Element

Name

400000 Raw materials 1

400001 Raw mat. scrapped

400010 Raw materials 2

403000 Operating supplies

404000 Spare parts

405000 Packaging material consumption

410000 OEM products consume

410001 Scrapped trading goods

415000 External procurement

416100 Electricity base fees

416200 Electricity usage

416300 Water

417000 Purchased activity

418000 Training courses

419000 Provision: Loss of raw materials

420000 Direct labor costs

421000 Indirect labor costs

422000 Idle time pay

430000 Salaries

431000 Ancillary payroll costs

432000 Additional salary costs

434000 Pay scale benefits: Vacation allowance

435000 Pay scale benefits: Standard annual allowance

440000 Pension scheme contribution

445000 Pay scale benefits: Employee health insurance

446000 Workers’ Compensation Association contribution


Cost Element

Name

447000 Employee support costs

449000 Miscellaneous personnel costs

451000 Maintenance costs: Building

452000 Maintenance costs: Machinery & equipment

453000 Maintenance costs: Target=actual

459000 Other maintenance costs

460000 Net worth tax

462000 Bill of exchange tax

463000 Trading capital tax

464000 Motor vehicle tax

465000 Miscellaneous taxes

466000 Insurance expenses

470000 Office & Building

471000 Machinery rental

472000 Shipping costs

473000 Postage

473110 Fixed telephone costs

473120 Telephone usage

474100 Travel costs (flat-rate tax)

474210 Travel costs (accommodation)

474220 Travel costs (board)

474230 Travel costs (rail, road and air)

474240 Other travel costs

474250 Travel costs: Entertainment

474280 Travel costs: Flat-rate tax

474290 Travel costs: Advance

474295 Travel costs: Cash advance

475000 Vehicle costs

476000 Office supplies

476100 IT Materials

476500 Other admin expenses


Cost Element

Name

476900 Miscellaneous costs

477000 Advertising & sales

479000 Bank charges

481000 Cost-accounting depreciation

481100 Low value assets

482000 Cost-accounting depreciation

483000 Accrued interest

484000 Accrued risks

489000 Other accrued costs

611000 DAA Production preparation

612000 DIAA Administration

613000 DAA Setup

614000 DAA: Internal transport

615000 DAA: Repair hours

615500 DIAA:Quality

616000 DAA Inspection

617000 DAA Energy

618000 DAA IT Services

619000 DAA Production hours

620000 DAA Machine costs

621000 DAA Engineering

622000 DIAA: HR administration

622500 DIAA: Site

623000 DAA Burn in

624000 DAA QA check

625000 DAA setup

626100 DAA Jr. Consultant

626200 DAA Sen. Consultant

626300 DAA Manager

629000 Time recording

629010 Payroll accounting

629020 Check credit status


Cost Element

Name

629030 Credit management

629100 Paint

629110 Dry

629310 Test non-stock material

629500 Purchase non-stock material

629600 Material staging 1

629610 Material staging 2

629620 Goods receipt of non-stock

629700 Sales order handling

629800 Order confirmation

629900 Production order handling

630000 General assessment

631000 Cafeteria assessment

631100 Vehicles assessment

631200 HR assessment

631300 Corporate Services assessment

631400 Cafeteria assessment

631500 Telephone assessment

632000 IAA Corporate Services

633000 IAA Cafeteria

634000 IAA Telephone units

635000 IAA Telephone (line rental)

636000 IAA Vehicles

637000 IAA Human Resources

638000 IAA Administration

638100 IAA Production

638500 IAA IT Service

639000 IAA Machine costs

639100 IAA IT installations

639200 IAA Power

640000 IAA ABC General

(C) SAP AG AC412 9-10

Cost Element

Name

641000 IAA ABC Others

641100 IAA ABC Repairs

641200 IAA ABC Machines

641300 IAA ABC Burn In

641400 IAA ABC Specialist

641500 IAA ABC Material

641600 IAA ABC Sales

648000 ASM. ABC Schedule process

648100 ASM ABC Shop floor

648200 ASM ABC Assembly standard PC

648300 ASM ABC Assembly configurated PC

648400 ASM ABC Design

649000 ASM ABC General

649100 ASM ABC QA

649200 ASM ABC Finance & Administration

649300 ASM ABC Marketing

649400 ASM ABC Sales

649500 ASM ABC Inquiries

649600 ASM ABC Quotes

649700 ASM ABC Production

649800 ASM ABC Logistics

649900 ASM ABC Maintenance

649910 ASM ABC R&D

650000 Order settlement

651000 Order settlement: Material

652000 Order settlement: Internal activity

652500 Settlement interest

653000 Order settlement: Quality costs

655100 Order settlement: Raw materials

655110 Order settlement: Other materials

655200 Order settlement: Personnel

655300 Order settlement: Administration

(C) SAP AG AC412 9-11

Cost Element

Name

655400 Order settlement: Sales & Distribution

666000 Settlement revenues

671110 Cost of sales: Direct costs

671111 WIP Creation - DC

671112 WIP Balance - DC

671115 Valuated revenues

671120 Cost of sales: Overheads

671121 Creation WIP overhead costs

671130 Cost of sales: Production costs

671131 Creation WIP overhead

671140 Cost of sales S&A

671141 Creation WIP S&A

672111 WIP direct costs

672112 Usage WIP direct costs

672121 WIP overhead costs

672122 Usage of WIP: Overhead costs

672131 WIP Production costs

672132 Usage of WIP: Production costs

672141 WIP S&A

672142 Usage WIP: S&A

672200 Capitalized profit

672300 Revenue in excess of billings

673111 Creation of reserves: Direct costs

673112 Usabe WIP: Direct costs

673121 Creation of reserves: Overhead costs

673122 Usage WIP: Overhead costs

673131 Creation of reserves: Production costs

673132 Usage WIP: Production costs

673141 Creation of reserves: S&A

673142 Usage WIP: S&A

673211 Build up reserves for imminent loss

673212 Usage reserves for imminent loss

(C) SAP AG AC412 9-12

Cost Element

Name

673221 Value adjustment: Reserves for imminent loss

673300 Revenue surplus

674101 POC profit increase

674103 POC profit decrease

674201 POC loss creation

674202 POC loss realization

674203 POC loss cancellation

675100 Calculated revenue

675200 Calculated costs

675300 Valuated actual costs

675400 Valuated actual costs: Commissions

675500 Revenues

690000 Assessment of PA: Administration

691000 Assessment of PA: Sales & Distribution

692000 Assessment of PA: Marketing

693000 Assessment of PA: Sales

694000 Assessment of PA: Production

Documents

AC412-CostCenterAccounting-AdvancedFunctions