Cost Planning

Purpose

Cost planning is carried out by developing and comparing different costing scenarios. A scenario contains a set of calculation results. The results may represent actual, previewed or projected costs, over a specified period of time.

The financial data used to perform scenario calculations may come from the following sources:

Projected pay

Basic pay

Payroll results

Process Flow

The information souce you use depends on whether you want to work with actual costs, or to project future costs. However, once cost data is brought into Personnel Cost Planning, the system does not differentiate between sources. It handles all types of information in the same way.

Costing data is extracted according to the organizational units within an organizational structure. Consequently, you can focus a scenario on a certain area of your firm by including only certain organizational units in a scenario. You can also subdivide scenarios so that they contain separate, self-contained calcuations for different areas of your firm, for example, branches or subsidiaries. This is achieved using scenario groups.

Once you create scenarios, you can edit the figures to further experiment. The system responds by recalculating the scenario according to each change you enter.

When you are satisfied with a scenario, you can transfer it to CO, to incorporate it into budget planning.

See also: