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The period-end closing in Activity-Based Costing is a task that is executed at period end for the entire firm.

The tasks carried out at period end, and the sequence they are done in depends on which SAP functions are used and what cost accounting methods are implemented. Following is a description of the basic functions available in Activity-Based Costing for the period-end closing.


Schedule Manager

The Schedule Manager facilitates the execution and control of the work needed for the period-end closing.

Reposting/Statistical Key Figures

Periodic Reposting

The periodic reposting also helps you to make corrections in your cost centers or business processes. It returns the same results as the activity related reposting.

Transfers of Statistical Key Figures from the Logistics Information System (LIS)

Statistical key figures, which are already available in the information system for Logistics, can be transferred to Activity-Based Costing.

Period-Based Allocations


As a basic part of costing in product cost planning and cost object controlling, the system can calculate overheads periodically for business processes.

Distribution/ Assessment

Distribution, assessment, and process assessment allocate costs collected on a cost center or business process during the accounting period to receivers according to pre-defined keys.

Indirect Activity Allocations

For indirect activity allocations, the system allocates quantities using self-defined keys.

Template Allocation in Actual: Processes/Cost Centers

For template allocations in actual for processes. allocation relationships of business processes are broken down and the derived quantities are periodically posted.

Target=Actual Activity Allocation

Target=actual allocation determines the actual activity quantities to be allocated based on the plan activity inputs of the receiver multiplied by the operating rate.

These actions take place at the end of an accounting period and thus make up period-end closing in the Activity-Based Costing component. Many of these allocations also apply to plan allocation.

After the allocations are complete, the R/3 System can determine variances and calculate actual prices on the basis of these results.

Variances and actual prices

Variance Calculation

Variance calculation allows you to categorize and analyze variances appearing in business processes by cost element. Variances are based on the results of the previous allocation functions and on planning.

Pre-distribution of Fixed Costs

Pre-distribution of fixed costs allocates the costs arising from the preparations for providing a plan activity, distributing them as actual costs to the business processes planning the activity input.

Actual Cost Splitting

In the Activity-Based Costing component (CO-OM-ABC), actual cost splitting related to business processes results in the division of all costs into fixed and variable portions based on the planning of the business process. Actual cost splitting, by dividing the costs into fixed and variable, allows target/actual comparisons and calculation of actual prices.

Actual Price Calculation

Actual price calculation allows you to determine cost rates based solely on actual data. You can use the actual price to reevaluate all activities in actual calculations. In this way, you can clear cost centers of all their costs and debit them accordingly to the business processes.



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