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Former Member

Primary cost planning

Hi Gurus,

can anyone explain me the following sentence in primary cost planning

You can only plan activity-specific primary costs when the corresponding activity outputs have been planned for the sender cost centers .

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    Former Member
    Sep 24, 2008 at 12:43 PM

    HI,

    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

    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.

    You can find the documents related with that in SAP help also.

    I hope, it helps

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    Former Member
    Sep 24, 2008 at 01:57 PM

    Hi, The Primary costs are planned by two ways. Some Primary Cost Elements shall not be used against the activity types and hence, they are independent of activity types and are always fixed costs. Whereas some primary cost elements are based planned with reference to the activity types. This is activity-dependent or activity-specific primary cost planning. This is updated as variable costs. Trust this helps much! Cheers! Tkx. Pl revert if your query is not answered yet.

    Edited by: Ashok Singh on Sep 25, 2008 2:33 PM

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    Former Member
    Oct 01, 2008 at 08:18 AM

    good answer

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    • Former Member

      Hi Ravi, You are welcome. If you do not mind, pl close the thread, if answered and do not forget to assign to encourage. Trust this helps much! Cheers!