Any alternative-- For the activity type

[Former Member]

Hi Friends,

Is there any alternative to the using activity types in Product costing?. As you know we are using for planning the costs related to the products through activity types. Getting the hourly rate and applying to the planned hours.

But is there any alternative? i.e instead of using the activity types is there any other way of planning the cost?

thanks in advance

siva

[Former Member]

Hi

The activity type cost is basically a ovehead cost , which are of two type activity based and non activity based .

The activity based is work through activity type and non activity worked with help of cost sheet .

So if donot want to have actity type based cost calculation use cost sheet

hope it will answer your question

thanks

if find suitable give points

[Former Member]

hi

Thanks for the response.

I am using the cost sheet for estimating the standard costs for a Material.

I have Raw material costs, RM overhead, Production costs, Production overhead.

For calculating the production costs, iam getting the activities from the work center wich is assigned to one cost center. For that cost center i have planed for the cost elements like labourcost, setup costs, machine costs with the amounts and hours using KP06 AND KP26).

so in Routing i will give the planned hours for that work center for a particular material which will be calculated with the planning rate per hour and arrive the total production costs.

My point is instead of using the activity types here as labour, setup and machine costs, is there any other altenative used by anybody in calculating the production costs in the cost sheet?

Thankyou

siva

[Former Member]

Hi Siva

Activity type is the only way of mapping costs of labour & machine to the production suggested by SAP.

Regards,

Suraj

[Former Member]

Hi Suraj

Thanks for the response.

YES, my opinion also is the same after studying available materials.

Regards

siva

[Former Member]

hi siva,

U hav to create the Secondary cost element in KA06 and this u have to assgin to the Activity type in KL01 in the Account assignment, befiore that please check all the Controlling steps must be correct done.

Regards

Ranjit

[Former Member]

Hi Ranjit,

Thanks for your response. But my question is the concept of activity types should not be used for planning the costs for the standard cost estimate.

Using any other concept is it possible to plan the costs for the purpose of standard cost estimate?

Thanks

siva