Direct Activity Allocation
Direct activity allocation involves the measurement, recording, and allocation of business services. To do this, you create the relevant (measurable) tracing factors, which are allocation bases that can be used as cost drivers. In Cost Center Accounting these are known as activity types. Activities are allocated for example when business transactions are confirmed or when activity quantities are posted to accounts. The system multiplies the activity produced by the price of the activity type.
You need to plan the activity types for the cost centers or business processes involved, either by setting prices manually or by using subsequent iterative price calculation (see also: Plan Price Calculation).
Note
If the receiver of the activity allocation is not a cost object (such as a cost center, business process, or internal order), the following applies: If no price was set manually, then the plan price is used. If you have not executed an iterative price calculation, then the manually set price for the activity type is used for direct activity allocation (the price in the plan/actual (000) version).
If the receiver of the activity allocation is a cost object (such as a production order or product cost collector), the valuation price is determined based on the valuation variant (which is linked to the cost object for simultaneous costing via the costing variant). If the receiving cost object is not linked to a costing variant for simultaneous costing, the plan price for the valuation period is used.
Example
The service cost center Plumbers (4110) performs 2 hours of the activity type Repairs for production cost center HFI (4210). The plan price for the repairs activity type is USD 15 per hour. In direct activity allocation, this price is valued as follows:
2 hrs X 15 USD/hr = 30 USD
The Plumbers cost center is credited with this amount and the HI production cost center is debited accordingly.
Direct activity allocation is most often used with the following cost controlling methods:
Standard costing
Static standard costing
Flexible standard costing
Activity-Based Costing
Direct costing
Note
If you implement internal activity allocation with predistribution of fixed costs (see Predistribution of Fixed Costs) and the sender is involved in predistribution of fixed costs, it depends on the receiver whether, under internal activity allocation, the system allocates total costs or only the variable costs.
If the senders and receivers participate in the predistribution of fixed costs and you post true costs to the receiver, variable costs are only allocated during internal activity allocation. The fixed portion is ignored.
If the sender participates in the predistribution of fixed costs, but the receiver (to which you are to post true costs) does not, fixed and variable costs are allocated.
If additional receivers involved in the predistribution of fixed costs are statistically posted to, only variable costs are allocated to these receivers.
If additional receivers which are not involved in the predistribution of fixed costs are statistically posted to, both fixed and variable costs are allocated to these receivers. The system always displays the true value flow on the user interface for internal activity allocation.
The system always displays the true value flow on the user interface for internal activity allocation.
Note
If you are working with transfer prices (multiple value flows), the internal activity allocations are carried out in the leading valuation. The plan price used for allocation thus applies to all the valuations.
For more information on transfer prices, see the SAP Library under 
EC Enterprise Controlling
Profit Center Accounting
Transfer Prices
(see: Multiple Valuation Approaches/Transfer Prices and Multiple Valuation Approaches in Overhead Cost Controlling).
Note
You can use the internet component Internal Activity Allocations in the Intranet to enter direct activity allocations in the internet. For more information, see:
SAP Internet Applications Components
Internal Activity Allocations in the Intranet (CO-OM-CCA)
Internal Price Lists in the Intranet (CO-OM-CCA)
Activities
To enter direct activity allocations, from the application component area menu, choose
Actual Postings
Statistical Key Figures
Enter
To enter direct activity allocations, from the application component area menu, choose
Actual Postings
Statistical Key Figures
Enter
To enter direct activity allocations, from the application component area menu, choose
Actual Postings
Activity Allocation
Reverse