This SAP ABAP blog is now discussing regarding controlling and planning aspects.Here is the continuation for the planning part three.
Planned Cost Splitting: Procedure
These activity-independent costs thereby become fixed portions in the activity prices. The simplest method for the plan cost splitting is to set up a equivalence number (default value = 1) in manual planning for each activity type. All planned activity-independent cost elements are split according the equivalence number.If you like to assign different cost elements groups to activities in different ways, or, for example,according to the plan quantity of the activity types, you can define a splitting structure . The latter along with splitting rules are used to determine the criteria applied to assign activity independent costs to activity types. A splitting structure contains one or more assignments in which you store splitting rules for the corresponding cost element(s) or cost element groups. You can restrict the selection of cost elements or cost element groups, as well the activity types on which the costs are split.
Splitting methods are assigned to the splitting rules. These methods specify how the costs are split. This method, which is already set in the R/3 system, allows for the above described splitting of planned costs.You can also use weighting indicators to control whether tracing factors are to be weighted for the cost splitting. Set the indicator if the individual tracing factor values use different units of measure. If the Conversion indicator is active, the values are multiplied with the equivalence numbers of the activity types. This enables you to compare the different units of measure of the tracing factor values.
Plan Activity Price Calculation
Planned prices can be calculated for every cost center activity type. The R/3 system takes all plan activity flows between cost centers into account and calculates the activity price in an iterative process by dividing the plan costs by the plan activity.Alternatively, you can calculate the fixed price portion from the relationship between the plan costs and capacity. This is useful when the provision costs for the maximum activity quantity are not to affect costing of a product. For example, an energy-supplying cost center must always be capable of supplying the maximum level of activity, even if this activity quantity is not always used. In this case, the fixed provision costs should remain on the supplying cost center, since the full amount cannot be assigned directly to the product costs.
In the plan version, you can set up the determination method for the plan activity price calculation. You can choose between average activity price and periodic activity price.If you have prices that are set both iteratively as well as manually, you can set the indicator "purely iterative" in the version. This ensures that the prices calculated from your planning (a mix of iterative and manual prices) are calculated using purely iterative methods. This means that an additional purely iterative price is calculated for all activity types on all cost centers, as if no prices have been set manually. You can thus see the effect of your manually planned prices on activity prices overall.
Cost Component Structure
Price calculation with cost component breakdown enhances the transparency of the prices calculated iteratively by the R/3 System. You can determine, for example, the proportions of material costs and wage costs in the price. The structure of price build-ups are retained for activity allocations in plan from the sender to the receiver.Before you are able to view the price cost components according to cost elements, you must first: Create cost component structures: You save the cost component structure you wish to use for price calculation in the version. Cost component splitting is not carried out if a cost component structure does not exist in the version.
Assign cost components to the cost component structure: The cost component encompasses all costs of the assigned cost element range. You assign cost components to the cost component structure based on your organizational requirements.You can use the prices calculated in detail with the cost component in the product cost planning (CO-PC). The assignment of cost elements in Cost Center Accounting to the cost elements in Product Cost Planning is done via a transfer scheme in Product Cost Planning. Cost components stemming from cost estimates that are forwarded from the product cost planning to the profitability analysis can also be analyzed in the CO-PA.
Typical Sequence for Planning
Cost center planning is used differently in almost every organization. The type of industry, organization structures, and management areas are all factors that affect planning. When defining the sequence of planning activities, SAP recommends bearing certain rules. A sample scenario might include the following points:
- You can use statistical key figures to calculate cost center characteristics, and to support cycle allocations and the splitting as tracing factors.
- As a rule, you begin with activity planning and tracing factor planning, because both plan activity quantities and plan capacity determine the final volume of costs.
- At the closing of the activity planning, you know the required volume of activity quantities and can therefore plan the primary costs , which can be either activity independent or dependent.
- The next step in the planning scenario is the secondary cost planning. You can plan secondary cost manually (activity inputs), or automatically (using the plan assessment or indirect activity allocation).
- At the end of the planning process, you can check and reconcile internal activity exchanges with the aid of plan reconciliation. Activity price calculation is the final stage of the planning activities.
- The planning process is not a one-time event, but an iterative process which usually goes through several cycles. Therefore you can store plan data in different versions.
Once the planning process is complete in Cost Center Accounting, you need to lock it to prevent changes being made.Use the locking indicator in the version to lock all of the planning for one planning year. Within the period lock, you can lock the planning for transactions that were not used (for example, revenue planning on cost centers). You can lock planning transactions for a combination of controlling area, fisca year, and version.You can select the business transactions to be locked from a list.Likewise, you can lock individual business transactions for all periods in the fiscal year, or all business transactions for a certain period.
Copying Planning or Actual Data to Planning
To speed up planning data entry, you can obtain the plan values by copying plan or actual data.If you want to use part of your manual planning from the previous fiscal year for the current one, if you want to transfer your planning values into another period within a fiscal year, or if you want to create different versions, you can use the function for copying planning.By using the "Copy planning" function, you can select a reference version and a target version to copy values from one version to another.
You can copy:
- Within fiscal years, versions, and cost centers
- Between different fiscal years, periods, and versions
- Between different fiscal years, periods, and versions
To assist your manual planning, you can select and copy posted actual data from cost centers. You can only use this function to copy transactions that you can plan manually.
Selection criteria for actual data are cost centers (all cost centers, cost center groups, or individual cost centers) fiscal year, and from/to periods. You can also specify which actual data is to be copied. It is possible to select any value groups in the copy function. For example, you can restrict the selection to the data of a certain cost center, or use all of the data. You can also specify the business transactions that you want to copy.
You can use plan revaluation to increase or reduce planning data based on a percentage. For example, you can use this combine the "Copy planning" function with revaluation to create different plan versions. This can be useful if you copied the planning data from the previous fiscal year, or if you want to create scenarios for different situations in one fiscal year.
You can revaluate costs as well as the consumption. You can revaluate all of the cost elements used in the planning for primary cost elements and revenues. Assessment cost elements, accrual cost elements, and cost elements that are used for indirect activity allocation cannot be revaluated.You can revaluate cost centers or cost element plans as many times as required. During revaluation, plan line items are entered.Percentages used during a revaluation can be changed as many times as required. The old plan line items are deleted by repeated revaluations that have changed percentages. The revaluation always uses the original initial value.If the revaluation results are not to be reversed during a new run, then you need to define a new revaluation.
Transfer Plan Values
Integrated planning enables you to transfer data from one of the pre-stored systems in Cost Center Accounting to cost center planning.If this data was planned in the pre-stored systems , and is transferred to cost center planning, then the corresponding data in Cost Center Accounting can be removed.To use integrated planning, certain requirements need to be fulfilled in Cost Center Accounting and in the pre-stored systems. Therefore, for example, to be able to transfer planned personnel costs from HR to primary cost planning in Cost Center Accounting, valid cost centers need to exist in Cost Center Accounting that are assigned to the corresponding master data for personnel.
The R/3 system interprets the values entered in the overview screen as the total value for the period of time entered in the initial screen for planning. It uses a distribution key for period-based distribution of the totals values.The standard R/3 system contains distribution keys that can be used to distribute values by different criteria. It is not possible to change the defaulted distribution keys. Examples: If you select standard distribution key 1, the corresponding value is distributed evenly to the periods. Distribution key 7 means that the entered value is distributed to the periods using the number of calendar days.In addition to the standard distribution keys, you can define as many customer distribution keys as required. For example, you can create a distribution key for seasonal fluctuations, or one for shift schedules.