on 04-14-2009 4:24 PM
Hi SAP Gurus
Can any body tells about the field Planning activity in the transaction code KP26 and how it effects in calculation of activity cost while executing the costing run of the related material.
Thanks in advance.
Hi Amita,
The field "Plan Activity" in KP26 Overview screen represents the Activity Output to be planned in that Cost Center. In the initial screen of KP26, you will need to select the Cost Center and Activity Type. This indicates that, for example in that Cost Center A, for such Activity Type "Labour", what is the total number of Labour Hrs will be produced for a particular period. This data usually available from the business (core team). For example you mentioned the Plan Activity as 1000hrs.
Now, you will need to do the Cost Element Planning in KP06. Here, you will plan all relevant costs for that Activity Type in that Cost Center. For example, in the initial screen of KP06, you will select the Cost Center A, Activity Type "Labour" and Cost Element - for example "Salaries". In the overview screen inside, you have given 10,000 as your Planned Variable cost.
Once you saved the above, you need to run KSPI - Plan Activity Price calculation. System will calculate the Plan Activity Price by dividing the Plan Cost with Plan Activity Output (10000 in KP06 / 1000 in KP26). The system will store the Plan Price of Activity as Rs.10/-. You can see this price in KSBT.
Now, from Production point of view, in every Work Center, it is mandatory to assign some Cost Center. So as to manufacture the Product A, Work Center A is created and the above Cost Center A is asigned there. Routing will be created comprising of different Operations cotaining Work Centers.
When you run the Standard Cost Estimate for that particular Product, the Activities Cost will be calculated based on the number of hours mentioned in the Routing multiplied by the Plan Activity Price of Rs.10/-.
I hope this is clear, Pls revert back for further explanation...
Srikanth Munnaluri
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Hi,
Please find below the answers to your questions:
1. Mandatory things in Cost centers creation:
Mandatory fields:Cost Center, Valid from, Valid to, Cost Center Category, Person Responsible, Hierarchy, Compnay code (if Controlling area has got more co.codes),
Must fields (but not mandatory):Name, Description, Profit Center
2. Activity creation procedure
a) Create Secondary cost element with category 43
b) Go to KL01
c) Give Activity name and validity period and Enter
d) Give Name and Description, Activity unit in which the quantity is measure for this activity, Cost center categories to which you would like to make this activity applicable (if choose "*" it means u want to use this activity type for all the cost center categories, Activity type category, Secondary cost element created in step a),
while there are many other options that can be used based on the business need, the above the minimum details that need to be fed in order to create an activity
3.Activity Price planning procedures:
two ways of planning,
a) for activity independant costs - need to plan the activity in KP26
b) for activity dependant costs - need to plan for costs in KP06 and then for activity output in KP26.
if the costs are activity independant, then we need to use Splitting structures in order to attach the costs to activity types. Please go through cost splitting in Cost center accounting
use KSS4(cost split) and KSPI (plan activity price)
In case of activity dependant costs, directly we can using KSPI to calculate the planned activity price
Hope this helps you.
Please let me know if you need further details in this regard
Surya
Hi Amit,
The KP26 can be maintained in 2 ways:
1. Direct entry of rate in KP26 (fixed or variable)
2. Maintain plan cost in KP06; Maintain Plan activity (or plan capacity) in KP26; Calculate rate per activity type in KSPI; This would result in update of rates in KP26.
In the Activity Type master, you need to maintain whether rates to be maintained manually or based on plan activity or based on plan capacity.
Trust this helps
Cheers
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