There is no fixed sequence for cost center planning. However, SAP recommends certain guidelines. The following sequence is just one possible planning method.
COST CENTERS IN PRODUCT COST PLANNING , it provides you with a walk-through about cost centres and its hierarchy, before learning theory of its planning.
Cost center expenses (debits) are planned by activity type and cost element in transaction KP06. Variable and fixed dollar amounts can be entered as below (see Figure 2.10).
Figure 2.10: Change cost element/activity input planning
Cost center activity quantities are planned by activity type in transaction KP26. You can also manually enter an activity rate based on last year’s actual values (see Figure 2.11). Note that if you enter an activity rate instead of using the system to calculate a rate, you lose the opportunity to review the actual vs. plan and see dollar and unit variances.
Figure 2.11: Change activity type/price planning
It is best practice to plan activity quantities based on practical installed capacity, which accounts for downtime. If you plan at full capacity, plan activity rates will be underestimated.
You can plan all costs (debits) in production cost centers where they will eventually be allocated at month end. You can also plan costs where they are initially incurred and use plan assessments and/or distributions to allocate costs. I advise you to plan dollars in a way such that, you will incur them at month end for better variance analysis.
Transaction S_ALR_87013611 is the cost center actual/plan/variance report that I recommend for checking your work as you plan dollars and quantities. This report shows plan and actual dollars, activity quantities, and statistical key figures. It also shows the under/over absorption by cost center (see Figure 2.12 and Figure 2.13).
Figure 2.12: Cost center actual/plan/variance selection screen
Figure 2.13: Cost center actual/plan/variance report
You have the option to upload an Excel file, or a folder of Excel files, instead of manually keying in cost center planning in transactions KP06 and KP26. There are several steps of configuration required to enable this option.
In transaction KP34, define a custom planner profile. You can also access planned profiles through the IMG menu path CONTROLLING • COST CENTER ACCOUNTING PLANNING • MANUAL PLANNING • DEFINE USER-DEFINED PLANNER PROFILES (see Figure 2.14).
Figure 2.14: Configure user-defined planner profiles
Add a new entry to create a new planner profile. The SAP’ best practice is to create a new planner profile instead of making changes to an existing planner profile (see Figure 2.15).
Figure 2.15: Configure user-defined planner profiles
Select the planning profile and click general controlling. Enter the types of costs that should be planned using this planning profile. After creating the planning layouts, we will come back to this screen for the final two configuration activities.
Next, you create planning layouts for cost element planning in transaction KP65, or through the IMG menu path CONTROLLING • COST CENTER ACCOUNTING • PLANNING • MANUAL PLANNING • USER-DEFINED PLANNING LAYOUTS • CREATE PLANNING LAYOUTS FOR COST ELEMENT PLANNING (see Figure 2.16).
Figure 2.16: Report Painter planning layout for cost elements
Enter the planning layout and description (see Figure 2.17). You can also copy from an existing layout. SAP does not advise changing SAP standard planning layouts. It is best practice to copy from and create a new layout if necessary.
Figure 2.17: Report Painter planning layout for cost elements
The Report Painter screen shows the planning layouts for cost element planning and the layout of the planning layout just created. You can make changes to the layout here if necessary.
You continue by creating a planning layout for activity type planning in transaction KP75 or through the IMG menu pathCONTROLLING • COST CENTER ACCOUNTING • PLANNING • MANUAL PLANNING • USER-DEFINED PLANNING LAYOUTS • CREATE PLANNING LAYOUTS FOR ACTIVITY TYPE PLANNING.
Finally, create a planning layout for statistical key figure planning in transaction KP85 or through the IMG menu pathCONTROLLING • COST CENTER ACCOUNTING • PLANNING • MANUAL PLANNING • USER-DEFINED PLANNING LAYOUTS • CREATE PLANNING LAYOUTS FOR STATISTICAL KEY FIGURE PLANNING.
Return to transaction KP34 where we created the planner profile and confirm that your planning layouts are created. Select the PLANNER PROFILE and click GENERAL CONTROLLING. Then select the PLANNING AREA FOR COST ELEMENTS and click LAYOUTS FOR CONTROLLING. Now enter the layout you created for cost element planning. Click the OVERVIEW and INTEGRATED PLANNING check boxes to activate these features. Click enter (see Figure 2.18 and Figure 2.19).
Figure 2.18: Configure user-defined planner profiles
Figure 2.19: Cost element/activity input planning
Select the layout in the previous screen and click default settings. You will be taken to transaction KP06 where cost element planning is entered (see Figure 2.20).
Figure 2.20: Cost element planning maintain file description
Enter a version, from period, to period, fiscal year, cost center, and cost element. Click the OVERVIEW button. An Excel upload template will generate (see Figure 2.21). Download this template and save for users to upload cost element planning.
Figure 2.21: Configure user-defined planner profiles
Return to transaction KP34 and follow the same steps to generate a file for activity type planning and statistical key figure planning.
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