Planning Sequence
Purpose
There is no fixed sequence for cost center planning. However, SAP recommends certain guidelines. The following sequence is just one possible alternative.
Process Flow
Activity type planning
SAP recommends you begin with activity type planning or allocation base planning since the plan activity quantities and capacities determine the plan volume of costs. The system refers all cost center costs to the activity types. and then calculates the prices for each activity type. You can also plan prices during activity type planning. The prices are not determined by the system in this case. As well as activity quantities and prices, you can also plan equivalence numbers during activity type planning.
When the activity types are further allocated, the system credits the cost centers according to the activity they provide. This requires the determination and setting of plan prices after cost center planning is complete. Only then can the cost centers be completely cleared of costs. Price calculation therefore represents the final stage of cost center planning (see:
Plan Price Calculation).Planning statistical key figures
Following activity type planning, you can start planning statistical key figures. These are figures that the system uses as the basis for plan distribution and plan assessment.
You can also execute actual distribution, actual assessment or indirect activity allocations based on the planned statistical key figures.
Primary cost planning
You generally plan primary costs after planning activity units or capacities so as to reflect the activity volumes. For more information, see:
Planning Scope: Overview.Manual Primary Cost Planning
Costs for activity quantities/capacities incurred due to external procurement or material issues must also be planned. You enter these costs online by cost center/cost element. For more detailed cost center planning below the cost element level, you can use base object costing (see:
Detailed Planning of Cost Elements).You can plan primary costs as:
You can split the activity-dependent primary costs into fixed and variable costs. The SAP R/3 System updates the activity-independent costs entirely as fixed costs.
Resource Planning
Resource planning is a planning aid that allows you to plan activity-dependent and activity-independent primary costs or revenues based on quantities. You use resource planning if only the quantities of the consumed resources are known.
Dependency Planning
Dependency planning is a planning method that enables you to represent simple proportional relationships with a view to calculating both activity-independent and activity-dependent costs.
Planning Primary Order Settlement Costs on Cost Centers
You can manually plan the order costs on receiver objects for non-planning integrated orders (see:
Planning Order Costs on Cost Centers).Revenue Planning
As well as costs, you can also plan anticipated revenues under special cost elements (see:
Revenue Planning).Planning Statistical Cost Elements for Balance Sheet Accounts
You plan statistical costs for balance sheet accounts to control order or project budgets when you acquire fixed assets that are directly capitalized.
Automatic Primary Cost Planning
In addition to manual planning of primary cost you can also plan primary costs based on pre-defined rules. In this case, the SAP R/3 System calculates the plan values based on your specifications.
Plan Accrual Calculation
After you have manually planned the primary costs, the next step is to plan accrual costs. You plan the accrual costs on the relevant costs centers using percentage rates.
Before planning the accrual costs, you must first define delimiting parameters. In most cases these are identical to the actual accrual parameters. For more information, see
Accrual Calculation.
Plan Distribution
Plan distribution is the final activity of primary cost planning. You plan the primary costs for the entire fiscal year on allocation cost centers. The system periodically distributes these costs, for example, telephone costs, heating costs or rent, to the individual cost centers according to predefined keys.
Before distributing plan costs, you must define distribution rules. In most cases these are identical to actual distribution rules. For more information, see:
Distribution.Periodic Reposting in Planning
Periodic reposting represents a posting aid for the adjustment of any incorrect postings. You can execute these postings at different times than the other business transactions (see:
Periodic Reposting).Secondary cost planning
When you have completed primary cost planning, you carry out secondary cost planning. This can be executed value- or quantity-based, manually or automatic.
Manual Secondary Cost Planning
With manual secondary cost planning you can plan secondary costs by value as activity inputs. You can plan the following:
Planning Secondary Costs).If you plan activity types manually, the system automatically generates a preliminary credit record for the sender cost centers. The system posts this credit record using a secondary cost element stored in the activity type master record. You can overwrite this secondary cost element during activity type planning. If the system is to calculate the prices iteratively, the system valuates the activity type after calculating the price and generates a credit record. As activity is consumed, the system reduces the credit record by the activity quantity received, valuated using the price of the activity type.
You plan 10,000 hours of the activity type Lathing on cost center 4210. One activity unit has an total price of $45 and is allocated using cost element 620000, Internal activity allocation to production. The system generates a credit record of $450,000 on cost center 4210 under cost element 620000 . An activity input of 100 hours of the activity type Lathing reduces the preliminary credit record by 100 hrs X $45/hr = $4,500.
Planning Secondary Order Settlement Costs
You can manually plan the order costs on receiver objects for non-planning integrated orders (see:
Planning Order Costs on Cost Centers).Planning Credits From Overhead Costs
To enable a plan/actual comparison for non-planning integrated orders, you can manually plan the credits on the cost centers that exist in the actual as credit objects for overhead costs on orders (see:
Planning Credits from Overhead Costs).Automatic Secondary Cost Planning
Automatic secondary cost planning lets you plan value-based secondary costs using plan assessment, or quantity-based using indirect activity allocation.
Plan Assessment
Plan assessment is used to plan value-based secondary costs. You can assess the primary and/or secondary cost elements cumulatively, or in groups, according to user-defined rules.
You must define assessment rules before executing plan assessment. In most cases they are identical to actual assessment rules. Plan assessment cannot start until these rules are defined (see:
Assessment).Indirect Activity Allocation
Indirect activity allocation is used for the automatic allocation of actual and plan activities. You can specify keys to allocate activities, which is not possible when you use manual activity input in the plan or actual activity allocation (see:
Indirect Activity Allocation).Plan Reconciliation
Plan reconciliation enables you to check and reconcile the exchanges of internal activity The system adjusts the activity quantity planned for a cost center to the scheduled activity of the receiver cost centers (see:
Plan Reconciliation).Price Calculation
Iterative price calculation is the final stage of the planning process. All the previous planning transactions are taken into account. The SAP System calculates the prices of your activity types for each cost center in multiple iteration steps. The system then uses these prices to valuate the activity relationships (see:
Plan Price Calculation).Budget Planning
You can carry out cost center budgeting at any time, independent of the other planning steps. Budget planning does not use the data of the other planning steps, which means that you execute it at any time within your planning process. Budget planning provides you with an additional tool for cost control. You can analyze budget variances in a budget report (see:
Cost Center Budget Planning).Transferring Planning Data from Other Components
Integrated planning enables you to copy data stored in Cost Center Accounting into your cost center planning from any of the following application components: