How to Calculate Activity Rate Accounting in SAP CO-PC

Activity Rates define or rather calculate the cost of performing an activity type. The goal of activity rate calculation is to calculate plan activity rates for activities in each production cost center. Now that our cost center dollars and activity quantities are planned and overhead costs are allocated, we need to calculate activity type rates. Activity type rates are used to value internal activities on routings to produce products.

If you have manually entered activity rates in transaction KP26 instead of planning total dollars and units and letting SAP calculate your activity rates, you do not need to perform the following steps. You simply review activity rates in transaction KSBT. Note that you can use a mixed approach and plan rates for some activities/cost centers and calculate rates for others.

Plan cost splitting

After cost center planning and allocations, you must next execute plan cost center splitting. During plan cost splitting, the system splits the activity-independent plan costs of a cost center among the activity types of this cost center.

It splits costs when you have more than one activity type in a cost center and you want to split the costs between two activities based on activity quantity or some other quantity. This is a great place to use cost center groups to easily select desired cost centers since you cannot enter a range. Cost splitting is performed in transaction KSS4 (see Figure 2.26).


Figure 2.26: Plan Cost Splitting

Finally, activity type rates are calculated in transaction KSPI. If rates are undesirable, then you can revise your cost center plans and recalculate the rates. Rates are not final, until you use them to calculate and release product costs. This is an iterative process and it is expected that you will make several attempts at desirable rates (see Figure 2.27).


Figure 2.27: Execute plan price calculation

After calculating activity type rates, you can review rates in transaction KSBT. You may find that your rates are not appearing for certain months, or that they are averaged over 12 months. Make sure you review the PERIOD OVERVIEW screen in cost center planning Transactions KP06 and KP26. This screen shows cost and units by each month (see Figure 2.28).


Figure 2.28: Activity type price report


0 Responses on How to Calculate Activity Rate Accounting in SAP CO-PC"

Leave a Message

Your email address will not be published. Required fields are marked *

Copy Rights Reserved © Mindmajix.com All rights reserved. Disclaimer.