effects of Activity type in FI/CO area

[Former Member]

Hi,

Can anyone explain me the effects of activity type in Finance and Controlling in detail

Please this is a bit urgent

thanks,

[Former Member · Accepted solution]

The function of activity types is to provide credit to the resource cost center at a specific rate times an amount of activity. These are allocated internally within Controlling with NO Financial impact.

example cctr 1000 is maintenance. CCtr 2000 requires maintenance. The service is 40 hours at $10 or $400. CCTR 1000 is credited for $400 and cctr 2000 is debited for $400.

pls assign points if helpful as a way to say thanks.

[Former Member]

Activity type specifies the activity provided by a cost center.For example you have 2 cost centers in your controlling area....a FICO consulting and Logistics consulting...Just try to analyse what each cost center does....both cost centers provide consulting activity...similarly you have a labour cost center whose activity is to provide the labour required for production.

Now every activity will be measured by price. That price is the activity price. For example FICO consulting renders its services at $100 per hour. Labour cost center at $30 per hour.

Hope it clarifies.

Regards

Aravind