Cost Allocation to Cost Centers  

Use

You can cost operations carried out at a resource by assigning a cost center to the resource.

Integration

Cost Centers

A cost center is a part of a company which is defined according to responsibility, location or billing areas. It is assigned to a controlling area.

Activity Types

Activity types are used to define the different types of activities within a cost center. They are defined in the controlling area.

Activity types are valuated per cost center and period with a charge rate which is made up of a fixed portion and a variable (work-related) portion. The charge rate with which in-house production activities are to be costed is determined by these activity types.

Prerequisites

The cost center to which you want to link the resource already exists and belongs to the controlling area of the plant of the resource.

Features

You can assign a resource to exactly one cost center for a given validity period.

Several resources from various plants can be assigned to one cost center. However, the resources must belong to the company code of the cost center.

You can assign an activity type that is valid for the cost center to each standard value of the resource. The activity type appears as a default value in the routing. You can also keep an activity type from being changed in the routing by setting a reference indicator.

Activity types that are defined in a controlling area and can be referenced in the resource are valuated in the cost center.

The following figure shows an example of the assignment of the cost center, activity types and resource for costing operations.

If an activity type is assigned to a resource and the resource is used in an operation, the costs for internal activities are calculated using the standard values for the activity type.

Activities

You can assign a resource to a cost center on the Costing tab page in resource maintenance.

The following data can be maintained:

In the validity section, you determine the effective period for the assignment of the resource to this cost center.

To cost activities, enter the cost center to which the activity types have been assigned. The cost center must be defined in the controlling area. The controlling area is specified via the plant.

Keep in mind that the cost center to which you want to assign a resource must already exist in the system.

If you want to assign the resource to different cost centers with different validity periods, overwrite the old validity periods and enter the new cost centers. However, the resource may only be assigned to one cost center at any one time.

For costing, assign activity types of the appropriate cost center to the standard values. If required, enter the activity type that is to be used for costing in the process order. Assign formulas for calculating costs to the activity types.