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    Configuration Activity Based Costing

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    raghu
    Configuration in SAP to Activate Activity Based Costing. Activity based costing can be activated through the controlling area settings. ABC uses business processes as the master data and cost objects. Planning in ABC involves inputting costs for business processes and defining activity output prices, similar to cost center accounting. Actual postings and allocations in ABC are also similar to cost center accounting. Templates can be used to allocate costs from business processes to products. Reports in the ABC information system are similar to those in cost center accounting. While ABC implementation in SAP is not complex, designing the costing system using business processes as activity drivers can be complex.

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    Configuration Activity Based Costing

    Uploaded by

    raghu
    742 views1 page
    Configuration in SAP to Activate Activity Based Costing. Activity based costing can be activated through the controlling area settings. ABC uses business processes as the master data and cost objects. Planning in ABC involves inputting costs for business processes and defining activity output prices, similar to cost center accounting. Actual postings and allocations in ABC are also similar to cost center accounting. Templates can be used to allocate costs from business processes to products. Reports in the ABC information system are similar to those in cost center accounting. While ABC implementation in SAP is not complex, designing the costing system using business processes as activity drivers can be complex.

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    Configuration in SAP to Activate Activity Based Costing. Activity based costing can be activated through the controlling area settings. ABC uses business processes as the master data and cost objects. Planning in ABC involves inputting costs for business processes and defining activity output prices, similar to cost center accounting. Actual postings and allocations in ABC are also similar to cost center accounting. Templates can be used to allocate costs from business processes to products. Reports in the ABC information system are similar to those in cost center accounting. While ABC implementation in SAP is not complex, designing the costing system using business processes as activity drivers can be complex.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    742 views1 page

    Configuration Activity Based Costing

    Uploaded by

    raghu
    Configuration in SAP to Activate Activity Based Costing. Activity based costing can be activated through the controlling area settings. ABC uses business processes as the master data and cost objects. Planning in ABC involves inputting costs for business processes and defining activity output prices, similar to cost center accounting. Actual postings and allocations in ABC are also similar to cost center accounting. Templates can be used to allocate costs from business processes to products. Reports in the ABC information system are similar to those in cost center accounting. While ABC implementation in SAP is not complex, designing the costing system using business processes as activity drivers can be complex.

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    Configuration in SAP to Activate Activity Based Costing 1.

    OKKP : In Maintain Controlling Area Settings Activate Components tab, we have the functionality to activate Activity Based Costing.We have the functionality to activate Parallel calculation or both parallel and integrated calculation. 2. Sub-Nodes of Activity Based Costing Module : ABC sub-modules are similar to cost centre accounting submodules. We have to carry out master data set-up , do the planning and then carry out actual costing for ABC which is similar to Cost Center Accounting . Whatever T Code is in CCA it starts with "K".. whereas in activity based costing it starts with "C".. Hence , plan activity/output prices will be CP26 in ABC .. whereas its KP26 in CCA . 3. Master Data Set-up: Business Process is the Mater Data for Activity Based Costing Module. If you closely look into the master data screen, you will find that it is the combination of activity type and cost center master datas. 4. Planning in Activity Based Costing : In ABC planning, we have to input cost for the business process (activity inputs) , define price of BP.(activity output prices ) and then perform allocations if necessary . Activity Based Costing planning process are absolutely similar to Cost Center Accounting with a difference that in ABC we do planning for a business 5. Actual Postings in Activity Based Costing Module : Actual posting to ABC is similar to Cost Center Accounting. We have all the reposting and allocation functionalities which is available in Cost Center Accounting. 6 . Templates in Activity Based Costing : We can also use templates to allocate cost from business process to products, similar to cost center accounting. We use similar templates, with only exception is that we use business process as cost objects. 7. Information System in ABC : All reports similar to cost center accounting are available in Activity Based Costing Module .

    Conclusion : Implementation of ABC in SAP is not complex, but designing the costing system with Business process as activity drivers is complex. Once ABC is implemented in SAP , business process is available as cost object . All allocation and planning functionalities are available for business processes and there usage are similar to cost center accounting usage

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