Skip to Content
avatar image
Former Member

Cost Center Variance and revaluation of activities at actual prices

Dear experts:

1. I'd like to know, given the complexity of setting up in customizing and entering data by users, as well as interpretting the results of variance calculations based on actual activity price calculations, I am wondering how many percentage (roughly) of SAP implementations actually use actual activity price calculation, splitting structures, and revaluation at actual activity prices at month-end.

2. Do you calculate actual activity prices for those consumed in production order via routing and revaluate to get actual production costs?

Those of you who have been on many implementations are requested to share their insights. This will help me assess how deeply I need to study AC412.

Your words of wisdom will be truly appreciated with reward of points.

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • avatar image
    Former Member
    Aug 22, 2007 at 09:36 AM

    Hi Mohan

    Usage of SAP functionalities like actual activity price calculations, splitting structures and revaluation depends on client. If the client is sure of its impact and is confident of ensuring posting correct data they use it. If the client has an environment where they cannot enforce or control activity confirmation corrections in plant, the costing guy does not go for these functionalities. There are two situations

    1) Actual activity qty is entered and costing is done with plan prices, in which case the variance is purely quantity variance

    2) Else plan qty is consdered as actuals and also the price, in which case no activity cost variance occurs

    Or u can do following

    The usage of these functionalities are purely dependent on client

    Where accuracy of data is ensured u can use the above functionalities and yes we calculate actual activity prices and also revaluate the production orders at month end to get actual production costs

    Pls assign points if the above helped ur cause

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      We are using Actual Revaluation for Activities successfully, but we have one small problem. We have a few cost centers that have low activity and thus we do not wish to revalue them at this time. We are using the single activity type in manufacturing cost centers as well as tooling cost centers (we do not wish to revaluate tooling). The SAP solution is to use a different Activity Type that does not revaluate. The problem with that is our labor collection system only allows one type without a very expensive change order. Our only solution at this time is to go to KBK6 before the Revaluation at Actual trx (CON2/MFN1) and edit the actual prices to the planned. I would like to know if anyone has a clever way to stop these cost centers from revaluating the activites without resorting to our given two solutions? The only two solutions so far are to use different activity types or to edit the KBK6 values to plan.