Formula planning is a planning aid that you can use for both activity-dependent and activity-independent planning. Using a formula that is defined in the system and that can be assigned to cost centers, the system uses the entered calculation formula and conditions to determine plan values for each individual cost center. If formula planning is carried out in update mode, the values are posted at cost center level. This planning aid is primarily suitable for top-down planning, in which specific rules can be defined for the determination of plan values for specific cost centers and cost elements. Consequently, the cost center manager does not need to make a manual entry for each planned cost element.

For example, the following process demonstrates the determination of costs for office supplies. It is assumed that management cost centers have higher expenditure for office supplies than other cost centers.