Price Indicators 
Definition
The Price indicator determines how the price of a business process or an activity type is calculated for a cost center.
Use
There are two fields: The Price indicator determines the way the system calculates prices for actual values. For actual allocations, you can enter a price indicator different from that in the plan.
You can enter the following values for the (plan) price indicator:
001:
The system calculates the price of the activity type automatically, based on the plan activity and the plan costs required by the cost center.
Fixed price: Fixed plan costs plan activity
Variable price: Variable plan costs plan activity
Total price: Fixed price + variable price
002:
The system calculates the variable portion of the price, based on the plan activity. The fixed portion, however, is based on capacity.
This method usually results in an underabsorption for the cost center. This is because the cost center is not credited in full for the costs of providing the capacity.
Fixed price: Fixed plan costs capacity
Variable price: Variable plan costs plan activity
Total price: Fixed price + variable price
NoteIf you have set values 001 or 002, the system calculates new prices when you execute Plan Price Calculation.
End of the note.003:
You set the price of the activity type manually.
004:
Activation from version maintenance
CautionYou cannot enter price indicator 004 (the plan price of the activity is calculated purely iteratively). If you activate Purely iterative price in the version, the SAP System calculates a purely iterative price, in addition to the price resulting from planning.
End of the caution.
You can enter the following values for the (actual) price indicator:
005:
The SAP System calculates the actual price based on the actual activity if you execute Actual Price Calculation.
006:
The system calculates the variable portion of the price, based on actual activity.
The fixed portion, however, is based on the capacity.
CautionIf you have set values 005 or 006, the system calculates new prices when you execute actual price calculation. Recalculation of actual activity at actual prices can only be executed if you have selected recalculation during version maintenance.
End of the caution.007:
Manual actual price: You set the price of the activity type or business process manually. Using this price indicator, you can set a price manually that is independent of and varies from the plan.
008:
Actual price, activation from version maintenance: The system calculates the actual price of the activity type or business process iteratively only. If you activate the indicator Iter. , the system calculates a purely iterative price in addition to the price resulting from planning.
CautionYou cannot enter price indicator 008 (the actual price is calculated purely iteratively). If you activate Purely iterative price in the version, the SAP System calculates a purely iterative price, in addition to the price resulting from planning.
End of the caution.