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Former Member

Activity type

Can anybody tell me what is Activity type which we maintain in work center.Please explain with good examle if possible.

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4 Answers

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    Former Member
    Oct 03, 2008 at 11:35 AM

    hi

    Activity types classify the activities produced in the cost centers within a controlling area

    To plan and allocate the activities, the system records quantities that are measured in activity units. Activity quantities are valuated using a price (allocation price).

    In Overhead Cost Controlling, costs based on the activity quantity of an activity type are posted separately in fixed and variable portions. When you divide the activities of a cost center into activity types, you should consider whether the costs can be allocated effectively to the activity types.

    The prices of the activity types of a cost center can be either entered manually, or calculated by the system based on the costs allocated to the activities. Prices can be calculated either using plan costs or actual costs.

    You can plan, allocate, and control costs either at the activity type level of a cost center, or at the cost center level. You can enter actual costs at the cost center level. Costs entered at the cost center level are assigned using splitting.

    You can also assign the activity type of a cost center directly. This use was designed for certain application areas (such as personnel costs and depreciation postings).

    You can assign one activity type, multiple activity types, or no activity types to a cost center

    Typical examples of activity types for cost centers are machine hours, administrator hours or units produced.

    -ashok

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    Former Member
    Oct 03, 2008 at 11:36 AM

    Hi,

    What are the processing we are using in a workcenter to produce a material, we are assigning as a parameter in std value key ex, setup time, processing time, tear down time.

    With these parameters system will create scheduling, capacity & costing by using some formulas.

    To capture costing, these parameters are assigned with activity type in workcenter costing tab page. For each activity, costing rate is defined in tcode KP26 per hour. This amount is confirmed in prod order according to confirmed qty.

    Regards,

    Dharma

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    Former Member
    Oct 03, 2008 at 11:44 AM

    Hi,

    Activity determines whether the activity price for evaluation.

    Suppose if u want to execute some operation on the machin X against particular order.

    The machine used cost will be captured against the production order.

    So that first activity is created through KP26 transaction.

    In this activity per Hr machine cost is maintained, then this activity type is assign to the work center.

    So when u use the machine against particular operation and confirmed that operation, then machine cost will be automatically captured against that order.

    Activity mainly used for to capture the machine,labor cost.

    Regards,

    Vijay

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  • Oct 03, 2008 at 11:48 AM

    Dear,

    Activity is the carrier of cost it represents the different kinds of activities done in the production floor.

    like Labour hours, machine hours

    It is used to allocate the costs from the cost centers to the production order.based on the hours given in the routing and the rate planned in cost center plannin the production order gets debited.

    Activity type is a unit of measurement for a particular activity like Machine, Labour, Maintenance, etc.

    All these activity type is assign to stranderd value key in work center maxniym six per standard value key.

    We create Activity type through T.Code KL01. While creating an activity type,

    In KP26, we link an activity type to a cost center for the purpose of activity price calculation.

    In CR01 while we are creating Work Center, we assign activity type in a work center.

    In product costing, for determing the production overheads we use activity types.

    Hope the above is clear...If you still have any questions, please feel free to ask

    Regards,

    R.Brahmankar

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