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Cost center planning sequence

former_member229531
Active Participant
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Hi All,

I previously worked on manually calculated labor rates and entered in KP26 directly. First time trying to implement automatic planning sequence in SAP for a manufacturing company.


I’m trying to understand cost center planning process and sequence. May be I’m asking too many questions here. Please bear with me.


Is this sequence is correct for cost center planning?


1. Activity type planning KP26 -->enter activity type quantities

What type of activity types and quantities should be entered here for planning?

2. SKF planning -->KP46

What is use of SKF planning and what type of cost center(only production cost centers?) is used for planning?

3. Activity Independent planning -->KP06

What type of cost centers(only production cost centers?) are used for Activity Independent planning?

4. Activity Dependent planning -->KP06

What type of cost centers(only production cost centers?) and activity type are used for Activity Dependent planning?

5. Plan Allocations -->Assessment, Distribution etc

Will run allocations for cost centers or only few cost centers (only production cost centers?)? Which type of cost center will included in these type of allocations?

6. Indirect activity allocations?

In what case indirect activity allocations are used?

7. Activity price calculation using splitting -->KSPI

What type of cost centers (only production cost centers?) and cost elements are assigned to splitting structure?

Any help is appreciated…

Thanks,

Anusha

Accepted Solutions (1)

Accepted Solutions (1)

kamalkumar_biswas2
Active Contributor
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Hi Anusha

      See my comments on your questions:

   

1. Activity type planning KP26 -->enter activity type quantities

What type of activity types and quantities should be entered here for planning?


  ..... Here you will enter activity qty like HR as per your Activity unit defined in KL01. This quantity is basically various operation time required for production as per plan production qty..suppose you have planned 1000 units to produced in 1000 Hr/Min so 1000 will be the qty in KP26

2. SKF planning -->KP46

What is use of SKF planning and what type of cost center(only production cost centers?) is used for planning?


.... SKF is used to allocate costs as based parameters tracing factor.. so that sender cost can be allocated to receiver cost centers based on SKF ..SKF can be used for any cost centers where allocation is required. But it is not compulsory..you can allocate other way also

3. Activity Independent planning -->KP06

What type of cost centers(only production cost centers?) are used for Activity Independent planning?


.... Activity independent planning is mainly for non- production cost centers where no activity rate is required.

4. Activity Dependent planning -->KP06

What type of cost centers(only production cost centers?) and activity type are used for Activity Dependent planning?

... Yes you are correct

5. Plan Allocations -->Assessment, Distribution etc


Will run allocations for cost centers or only few cost centers (only production cost centers?)? Which type of cost center will included in these type of allocations?


.....When your planning requires to allocate costs from one/group cost centers to other cost centers, use Assessment/distribution

6. Indirect activity allocations?

In what case indirect activity allocations are used?


.....  When we need not require activity rate for charging costs but want to allocate costs on qty basis

7. Activity price calculation using splitting -->KSPI

What type of cost centers (only production cost centers?) and cost elements are assigned to splitting structure?


.....  For cost centers having activity defined that is cost centers planned activity dependent




Kamal

Answers (1)

Answers (1)

rajneesh_saxena
Active Contributor
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Hi Anusha

Kamal Sir has given a wonderful explanation to your query.

I would just add a fer words to it:

First of all. to calculate activity price automatically by system your activity type should have price indicator as '01' (plan price automatically based on activity).

1. Activity type planning KP26 -->enter activity type quantities

What type of activity types and quantities should be entered here for planning?


Usually Activity type of category 1 is used.

2. SKF planning -->KP46

What is use of SKF planning and what type of cost center(only production cost centers?) is used for planning?


For example if you want to distribute cost of running a cafeteria to all the cost centers in your organisation, you will create number of employees as SKF and plan it to all cost center. Then you can allocate cafeteria cost based on this SKF using distribution or assessment methods.

5. Plan Allocations -->

Assessment, Distribution etc


Will run allocations for cost centers or only few cost centers (only production cost centers?)? Which type of cost center will included in these type of allocations?


Example give at point  2 above.

6. Indirect activity allocations?

In what case indirect activity allocations are used?


Indirect activity allocation is used mainly when the activity quantity generated by one cost center and used by other and how much is used by a cost center is not known or can be calculated with great efforts.

For example: Suppose you have a Generator shop which supplied power to all cost centers but you are not able to record the quantity of power supplied by the Gen sets to cost centers. Also you have separate energy meters installed at the cost centers. In this case you are not able to find out how much power qty consumed by the cost center from Gen set and how much from direct supply from electricity board. In such a case we use Indirect activity allocation method. Here the Activity type category is used 2 or 3.

7. Activity price calculation using splitting -->KSPI

What type of cost centers (only production cost centers?) and cost elements are assigned to splitting structure?


I am little confused here. What you want to know? It is about KSPI or KSS2 or KSS4?

For KSPI, Kamal Sir has given you reply..

The cost elements which are planned independent of activity types (Activity independent planning) are assigned in splitting structure. This is done for Production cost centers only since you calculate activity prices for production cost centers only.

Hope I was able to give you few hints for clarity.

If satisfied, Kindly close the thread to make the space useful for one and all.

Rajneesh

kamalkumar_biswas2
Active Contributor
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Hi Rajneesh

   Thanks for adding more points.........

  Kamal

rajneesh_saxena
Active Contributor
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Always welcome Kamal Sir

Regards

Rajneesh