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author's profile photo Former Member
Former Member

plan cost splitting

Hi,

May I know what is the main purpose of plan cost splitting KSS4 and what is the implication of running this? Can explain with example?

Thanks alot

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 07, 2011 at 06:21 AM

    Hi,

    Actually spliitng concept will comes in picture when you are doing independent planning.

    At the time plan cost spliitng Cost will be spllited to activites based activite capacity /quantity.

    Suppose in your production cost center total cost is 20000

    Activity types

    Labour 200 hr

    Machine 100 hr

    set up 100 hr

    While you are doing KSS4. the cost will be spillted between the 3 activites in the ration of 2:1:1

    Before that you have to define your splitting structure......

    How you want splitt the cost ....

    If you not define splitting structure then system will splitt the cost equally to the three activity types.

    Before doing aplan activity price calculation you have to do the plan splitting.

    Thanks

    Ram

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    • Former Member

      Hi,

      Great answer. point given.

      1 May I know what does it mean by activity capacity? How Capacity different from quantity?

      2 where can i see the use of split structure and the effect after define splitting structure in okes?

      thanks

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