Primary Cost Planning 
Use
Planning primary costs involves entering those costs that arise from the consumption of goods and services supplied to the organization from external (as opposed to internal) sources.
Primary costs include:
Labor costs
External services
Material costs
Operating supplies
Accrual costs
These accrual costs either have different values in CO than in FI (imputed interest or depreciation), or are incurred at different times in CO than FI (special payments such as vacation bonuses, or irregular costs, for example, repairs).
Features
In primary cost planning, you can enter costs and consumption quantities for each cost center/cost element. This means that primary costs can be planned by quantity, as well as by value.
In primary cost planning, which is based on value, the system records only the plan costs for each cost element. To do this, use, for example, planner profile SAP101 and standard planning layout 1 - 101.
During primary cost planning that is based on quantity, you plan the consumption of goods and services that the organization procures from external sources. No valuation occurs. For example, you can use planner profile SAP101 and standard planning layout 1 - 101, which includes the characteristics Fixed consumption and Variable consumption for planning.
If you only know the quantities of the resources consumed, you also use resource planning to carry out a quantity-based primary cost planning using planner profile SAPR&R and standard planning layout 1 - 1R1. The SAP system executes the valuation using the prices you have stored.
Primary costs can be planned using different methods: The following methods are available:
Manual primary cost planning
Activity-independent primary cost planning
Activity-Dependent Primary Cost Planning
Automatic primary cost planning
Plan distribution
Planned results analysis