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Purpose

In general, there is no single sequence to follow in business process planning. However, you should keep certain rules in mind. The following is our recommended procedure, but it is not meant to be binding.

Before you call up the initial planning screen, select a planner profile. You use planner profiles to control the planning process. The SAP System includes multiple standard planner profiles.

For more information, see Planner Profiles and the Implementation Guide (IMG) for the Activity-Based Costing component (CO-ABC) under Planning ® Manual Planning Aids ® Maintaining User Defined Planner Profiles .

Process Flow

Before you call up the initial planning screen, select a planner profile.

For more information, see Execution of Manual Process Planning.

Statistical Key Figure Planning

We suggest you begin with statistical key figure planning because you can use them to determine plan activity and capacity, as well as use them as tracing factors in plan distribution and assessment.

You can also carry out actual distribution, assessment, or indirect activity allocation on the basis of plan statistical key figures.

For more information, see Execute Statistical Key Figure Planning.

Activity Input Planning

Business process planning is based generally on cost center planning, along with activity type planning and tracing factor planning, because the plan activity quantities and capacities influence the plan cost volume for the business processes. All cost center costs relate to the activity types (as tracing factors) and lead to the determination of price for each activity type. Allocation for activity types results in the crediting of the cost center based on the sources of the costs and the corresponding debiting of the business process. This requires price calculation or manual price determination for the plan activities after closing cost center planning.

For more information, see Planning Process Inputs.

Primary Cost Planning

Planning primary costs follows activity and capacity planning because the activity volumes must be taken into account here.

Manual Primary Cost Planning

In primary cost planning, you schedule the main costs (meaning those arising from external sources) for the activity quantities and capacities. You enter these on-line by cost object or cost element. Plan distribution is the last activity undertaken in primary cost planning. Distribution in plan is normally analog to distribution in actual. The primary costs are entered on "collection cost centers" and distributed on a periodic basis according to pre-defined keys. You plan these primary costs (such as telephone, heating, or rent costs) on the collection cost centers for the entire fiscal year and, with plan distribution, assign them to the individual business processes or cost objects in planning.

Before you carry out plan distribution, you must define distribution rules. For the most part, they are identical to the distribution rules defined in actual.

Secondary Cost Planning

After finishing primary cost planning, you can carry out secondary cost planning. It can be value or quantity based, and carried out manually or automatically.

Manual Secondary Cost Planning

In secondary cost planning, you schedule the subordinate costs (meaning those arising from internal sources) in the form of activity inputs. You can:

When you plan activity types, the SAP System creates an automatic, preliminary credit posting on the sender cost center or business process if you plan your prices manually (see also Template Allocation in Plan: Processes/Cost Centers). This credit posting appears in the activity type master data under the allocation (meaning the secondary) cost element. If the SAP System calculates prices iteratively, it valuates the activity type only after determining the price and creating a preliminary credit posting. For each activity input, the System reduces the preliminary credit posting by the amount of the accepted activity as valuated with the price from the activity type.

Example

You plan 10,000 hours of the activity "Lathing" on cost center 4210. The activity unit has a price of 45 USD and is allocated under allocation cost element 620.000, "Internal Activity Allocation, Production". This results in a credit posting of 450,000 USD on cost center 4210 under cost element 620.000. If a business process thereupon accepts an activity input of 100 hours, the preliminary credit posting is reduced by 100 45 = 4500 USD.

Automatic Secondary Cost Planning

In automatic secondary cost planning, you can enter the secondary costs on a value basis in the form of plan assessment, or on a quantity basis in the form of indirect activity allocation, for allocations from cost centers to business processes.

Cost Center Assessment

You can use plan assessment for value-based planning of secondary costs. Assessment allocates totals of primary (or primary and secondary) costs from cost centers to business processes or cost objects according to clearly-defined keys.

Before you carry out plan assessment, you must define assessment rules. For the most part, they are identical to the assessment rules defined in actual. You can start plan assessment only after you complete rule definition. (See Assessment (Cost Centers, Business Processes))

Indirect Activity Allocation to Business Processes

Indirect activity allocation is a tool for automatically assigning plan and actual activities to business processes. Unlike manual planning or actual activity allocation, you define keys to allocate the activities. (See Indirect Activity Allocation)

Output Planning

You have multiple options for output planning:

Plan Reconciliation

Plan reconciliation takes the various internal plans and coordinates and adjusts their activity exchanges. In the case of business processes, the plan activity quantity is reconciled with the scheduled activities of the receiver processes. (See Plan Reconciliation)

Plan Price Calculation

After closing the planning activities, you can start iterative price calculation. All previous planning transactions form the basis of this activity. The R/3 System calculates the prices iteratively for the activity types by cost center by dividing the plan costs by the plan activity. These prices form the basis of valuation of the activity relationships among the business processes. Only then will the correct allocation of costs to business processes be guaranteed.

For more information see Planned Activity Price Calculation and Actual Activity Price Calculation.

Process Assessment

Planning ends in the Activity-Based Costing component with the automatic allocation of overhead between business processes and between business processes and cost objects. This allocation is also applicable to both plan and actual. It is similar to cost center assessment.

For more information, see Period-Based Allocations.

Plan Data Transfer from Other Components

Integrated planning supports data transfers from the following components to the Cost Center Accounting component (CO-OM-CCA) to be used in cost center planning:

See also:

Aids for Manual Process Planning.

 

 

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