Indirect Activity Allocation

Hi Friends

Indirect activity allocation is a very common functionality and it is used in almost every implementation. At my times of practice this was a very scary topic to understand for me and the screens which I am sharing here are actually of that time only. Why I am sharing these screen today??? Reason is that even at my time I could not find any easy document on this topic and today some-one on the forum is asking help on this.

So let us start:

Important :

1. Activities of Activity type Categories ‘2’ and ‘3’ can only be used in Indirect Activity Allocation for Senders.
2. Indirect Activity Allocation should be used when either Sender quantities or Receiver quantities are not known or it is difficult to ascertain either of two quantities.

Process Flow:

Case1: Sender ‘Steam’ Activity Quantity is not known but receiver activity quantities are available. So we will create Activity type for Category ‘2’.

Sender Cost Centre is 13000701 and receiver Cost Centres are 13000301 to 13000303 with required Activity Quantities 10000 Kgs, 20000 Kgs and 30000 Kgs respectively.

Sender Activity is 3001 (cat. 2) and receiver Activity is 943002 (cat. 1).

Create Secondary Cost Element of Category ‘43’ as per requirement of business. (KA06)

Create Indirect Activity Allocation Cycle (KSC7)

Press Enter and fill required details

Click on ‘First segment’

Go to Next Tab

Next

Save the Cycles.

Do Activity Planning (KP26) at Receiver cost centres i.e. 13000301 to 13000303 for activity 943002 . Planning for sender cost centre 130007001 is not required as it is not known and will get planning figures automatically during allocation process, from the total quantities of receiver cost centres.

See Cost Centre Report S_ALR_87013611. You will find there that activities are planned for Cost centres 13000301 to 13000303 but  no planning for cost centre 13000701 (sender). Further,  there  is no Cost planning for any cost centres.

Run Indirect Activity Allocation Cycle (KSCB)

Remove Test run and Execute.

Now, See Cost Centre Report S_ALR_87013611. You will find there that activities are planned for Cost centres 13000301 to 13000303 and total of activity planned  for these cost centres  i.e. 60000 Kgs is planned  for cost centre 13000701 (sender).  But till now  there is no Cost planning for any cost centres.

Do Activity input planning (KP06) for Sender Cost Centre 13000701.

Calculate activity price for sender cost centre 13000701. (KSPI)

Now if you See Cost Centre Report S_ALR_87013611. You will find  that now  there is Cost planning also for receiver  cost centres along with sender cost centre. It comes by multiplying activity price at sender cost centre with activity quantity planned at receiver cost centres.

This ends the process in case of plan indirect activity allocation.

Regards

Rajneesh Saxena