DIRECT ACTIVITY ALLOCATION(PLAN)

This document will help you to allocate cost especially for utilities consumption. Suppose you have Power Generation/Distribution unit or Steam, Water supply etc which are known as utility services. Most companies are purchasing these utilities from third parties and then consuming to various internal units. Few companies may generate from their captive plant and consume for their own use and also sale it to outside if there is any surplus generation.

But this is not their core business and not consider as core production unit. Under this business environment the cost per unit of utility is calculated and allocated to different consuming departments.

In my opinion, Direct Activity Allocation is one of the best methods in SAP because in this method we can determine unit cost of specific utility and also allocate cost to consuming department in one shot.

Scenario:

Step: 1

Plan Power Purchase qty in KP26 for CCtr DSPPWR0001

Step :2

Plan Power expenses in KP06 (Activity dependent)

Step:3

This is step where we plan Power distribution in KP06 (layout 1-102).Out of 1000 KWH , 900 KWH distributed to consuming department as shown below

Step : 4

Run KSPI and it will calculate Power rate and also distribute power cost to Receiver Cost centers

The advantage of this allocation is as given below:

1. 1.       You can allocate Fixed and Variable cost both which is not possible in assessment or indirect activity allocation
2. 2.       Per unit cost of utility is also derived
3. 3.       KSPI is serving both function ie price calculation and allocation

I think this document will help many of us ……………

Kamal Kumar Biswas

SAP CO Trainer