Integrated Activity-Based Costing (SAP Library - Activity-Based Costing (CO-OM-ABC))

Integrated Activity-Based Costing

Use

Integrated Activity-Based Costing (ABC) fully integrates the Activity-Based Costing component (CO-OM-ABC) in the value flow of the Controlling component (CO), in particular the Product Cost Controlling component (CO-PC) and the Profitability Analysis component (CO-PA). Integrated ABC posts costs and quantities as real values, not statistical ones, to the participating objects.

Integrated ABC in Manufacturing Industries

This graphic is explained in the accompanying text

Note

Integrated ABC requires a radical rethinking of cost accounting as part of the overall managerial accounting strategy, with corresponding organizational restructuring requirements.

Activating an Integrated Activity-Based Costing

To activate integrated ABC in the Implementation Guide (IMG) for the Activity-Based Costing component, choose Controlling ® Overhead Controlling ® Activity-Based Costing ® Activating Activity-Based Costing in Controlling Area. Select a controlling area and choose Activate components/control indicators. Set the Activity-Based Costing indicator to "Component active for parallel and integrated calculation".

For the Activity-Based Costing component, this means:

The component is completely active

Business processes act as real account assignment objects

You can post allocations as true debits and credits and update the allocation objects accordingly with the appropriate posting transactions
Allocations based on the delta version concept are still possible.

You must activate integrated ABC for each separate controlling area.

See also:

Activity-Based Costing active in controlling area