Primary cost planning

[Former Member]

Hi Gurus,

can anyone explain me the following sentence in primary cost planning

You can only plan activity-specific primary costs when the corresponding activity outputs have been planned for the sender cost centers .

[former_member740051 · Accepted solution]

HI,

Planning primary costs involves entering those costs that arise from the consumption of goods and services supplied to the organization from external (as opposed to internal) sources.

Primary costs include:

Labor costs

External services

Material costs

Operating supplies

Accrual costs

In primary cost planning, you can enter costs and consumption quantities for each cost center/cost element. This means that primary costs can be planned by quantity, as well as by value.

You can find the documents related with that in SAP help also.

I hope, it helps

[Former Member]

good answer

[Former Member]

Hi Ravi, You are welcome. If you do not mind, pl close the thread, if answered and do not forget to assign to encourage. Trust this helps much! Cheers!

[Former Member]

Hi, The Primary costs are planned by two ways. Some Primary Cost Elements shall not be used against the activity types and hence, they are independent of activity types and are always fixed costs. Whereas some primary cost elements are based planned with reference to the activity types. This is activity-dependent or activity-specific primary cost planning. This is updated as variable costs. Trust this helps much! Cheers! Tkx. Pl revert if your query is not answered yet.

Edited by: Ashok Singh on Sep 25, 2008 2:33 PM