Direct Activity Allocation

Figure 49: Direct Activity Allocation

Direct activity allocation deals with the measurement, posting and allocation of an organizational activity.

You need to create the corresponding (measurable) tracing factors in the SAP system. These are known as activity types in Cost Center Accounting. To directly allocate activity, create an activity type (activity type category 1 = manual entry, manual allocation).

TFIN20_1 Lesson: Direct Activity Allocation

If you want to enter a direct activity allocation, enter the cost center that provides the activity (sender cost center), the object that receives the activity (receiver), the type (activity type), and the quantity of the activity provided. Bear in mind that only one cost center can be the sender of an internal activity allocation. The receiver can be any real Management Accounting object such as a cost center, an order, a project, and so on.

To allocate activities directly, you need to define which cost centers are to provide which activity types, by planning activity output. You do this by planning

activity output.

During direct activity allocation, the sender cost center is credited, and the receiving cost objects are debited. The debits and credits are made using a secondary cost element (category “43”). Debiting and crediting are the activity provided, multiplied by the activity price.

The cost element used for direct allocation of internal activity is derived directly from the master data for the activity type. The cost element cannot be changed in the allocation transaction.

Direct activity allocation is recorded by line items on the sender side and receiver side.

Figure 50: Reposting Direct Activity Allocation

Reposting internal activity allocation is used to adjust posting fields.

A search function is available, which provides you with the documents you are looking for.

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The total quantity of the allocated activity must remain the same, however, you can allocate the quantities to different receivers.

You can make adjustments in periods, but not in the same period from which the document to be adjusted originates. However, the fiscal year must remain the same.

You can repost the following documents for direct activity allocation:

• Documents entered manually into Cost Center Accounting

• Management Accounting documents for confirmations (from Production Planning and Controlling)

• Management Accounting documents for time recording (from time sheet) Reposting creates a reference in the reposting document to the Management Accounting source document.

TFIN20_1 Lesson: Direct Activity Allocation

Exercise 10: Direct Activity Allocation

Exercise Objectives

After completing this exercise, you will be able to:

• Debit the corresponding cost objects (direct activity allocation) with the consultant activities

Business Example

In your project team, you have agreed that the consultants who work for a

company are to directly debit the cost objects set up for this once a week. For each company customer, the CO-OPA team (overhead cost orders) has already set up an internal order as a cost object. On this internal order, you can analyze to what extent each company has used consulting activity from the consulting department.

Task 1:

The consultants enter the number of consulting hours that they have worked for different projects.

1. The internal orders that already exist in the system act as cost collectors (consulting company A and consulting company B). The consultants normally enter their own activity, and thus trigger direct activity allocation.

For test purposes, enter the consulting activity for the consultants, using today's date in version 0, with screen variant Order. Now post the following data in the list entry:

Sender cost center

301## (FI/CO Consulting) 301## (FI/CO Consulting)

302## (LO Consulting) 302## (LO Consulting)

Activity

Continued on next page

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2. Display all the screen variants for direct activity allocation again in the match-code. Why is the sender category never mentioned in the screen variant name, but the receiver object is?

Task 2:

Check the postings (for direct activity allocation) in reports in Cost Center Accounting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current period and the plan version 0. Execute the report report in the cost center 301##

(FI/CO Consulting).

2. Page down to display the allocated quantities.

3. Display the actual line items for cost centers for the report row in the secondary cost element 6262## (senior consulting ##), or 6261## (junior consulting ##). Switch to the layout Secondary Costs: Activity Allocation.

4. Call the report Cost Centers: Activity Prices for the cost center group B30##

in the version 0 for all periods of the current fiscal year to obtain an overview of all the prices.

TFIN20_1 Lesson: Direct Activity Allocation

Solution 10: Direct Activity Allocation

Task 1:

The consultants enter the number of consulting hours that they have worked for different projects.

For test purposes, enter the consulting activity for the consultants, using today's date in version 0, with screen variant Order. Now post the following data in the list entry:

Continued on next page

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Sender cost center

301## (FI/CO Consulting) 301## (FI/CO Consulting)

302## (LO Consulting) 302## (LO Consulting)

Activity

a) Cost Center Accounting: Actual Postings → Activity Allocation→

Enter

b) Select the screen variant Order

Field Name or Data Class Document Date

Activity Type Receiver order Activity output 301##

301##

302##

Save your data!

J##

2. Display all the screen variants for direct activity allocation again in the match-code. Why is the sender category never mentioned in the screen variant name, but the receiver object is?

Answer: Position your cursor on the screen variant field.

Open the list of possible entries using the Match Code icon (F4 help).

You cannot select the sender category on the screen variant because activities can only be allocated by cost centers.

Continued on next page

TFIN20_1

Task 2:

Lesson: Direct Activity Allocation

Check the postings (for direct activity allocation) in reports in Cost Center Accounting.

1. Call the report Cost Centers: Actual/Plan/Variance for the current period and the plan version 0. Execute the report report in the cost center 301##

(FI/CO Consulting).

a) Cost Center Accounting: Information System → Reports for Cost Center Accounting → Plan/Actual Comparisons → Cost Centers:

Actual/Plan/Variance b)

Field Name or Data Class Controlling Area

Program → Execute

Goto → Position → Pages → 3

2. Page down to display the allocated quantities.

Answer: Page down to display the allocated quantities.

Answer: Position your cursor on report row cost element 6262##.

Double-click the report row.

Choose the Actual Line Items report.

Settings → Layout → Choose

Display variant Secondary Costs: Activity Allocation

Continued on next page

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4. Call the report Cost Centers: Activity Prices for the cost center group B30##

in the version 0 for all periods of the current fiscal year to obtain an overview of all the prices.

a) Cost Center Accounting: Information System → Reports for Cost Center Accounting→ Prices → Cost Centers: Activity Prices b)

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Field Name or Data Class Cost center group

Activity type(s) Multiple selection icon

Copy icon.

Version:

Fiscal Year Period from Price unit

Program → Execute

Values B30##

J##

S##

0 Current Current 1

Q2/2006

TFIN20_1

Lesson Summary

You should now be able to:

Lesson: Direct Activity Allocation

• Execute a direct accounting allocation and correct an accounting allocation.

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Unit Summary

Unit Summary

You should now be able to:

• Execute transactions in source applications and view the effect

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150

• Run totals reports and line item reports and explain additional functions in the information system.

• Describe the configuration options that facilitate postings.

• Correct original postings made to incorrect cost centers.

• Execute a direct accounting allocation and correct an accounting allocation.

TFIN20_1

Test Your Knowledge

Test Your Knowledge

1. In Financial Accounting you post to a Management Accounting relevant account. Which statements are true? You can...

Choose the correct answer(s).

□ A Debit a cost center as real.

□ B Debit a cost center as real and an order as real.

□ C Debit a cost center statistically and an order as real.

□ D Debit a statistical order as real and a cost center as statistical

2. The advantage of is that more than one, or all values that you normally need to enter before executing a report group are automatically displayed.

Fill in the blanks to complete the sentence.

3. The can be an FI document, or for

Q2/2006

example, an accounting document from a reposting.

Fill in the blanks to complete the sentence.

4. The Default Account Assignment...

Choose the correct answer(s).

□ A is defined in the cost element master record.

□ B chooses automatic account assignment when faced with contradictory information.

□ C can be overwritten.

□ D is maintained in Customizing.

5. A validation can always contain only one step

Determine whether this statement is true or false.

□ True

□ False

6. The substitution is stronger than (has priority over) the validation.

Determine whether this statement is true or false.

□ True

□ False

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7. The manual posting is always related to the Financial Management document.

Determine whether this statement is true or false.

□ True

□ False

8. A sender check is carried out for the transaction “Reposting of Line Items”.

Determine whether this statement is true or false.

□ True

□ False

9. The internal order can be the sender of a direct activity allocation.

Determine whether this statement is true or false.

□ True

□ False

10. The system requires the activity type for the direct activity allocation.

Determine whether this statement is true or false.

□ True

□ False

11. Debiting and crediting can be executed under a primary or a secondary activity type.

Determine whether this statement is true or false.

□ True

□ False

TFIN20_1

Answers

Test Your Knowledge

1. In Financial Accounting you post to a Management Accounting relevant account. Which statements are true? You can...

Answer: A, C

A statistical order can only be debited statistically, a real order can only be debited as real.

You always have to debit an account assignment object as real.

It is not possible to create real postings on several objects.

2. The advantage of user settings is that more than one, or all values that you normally need to enter before executing a report group are automatically displayed.

Answer: user settings

3. The source document can be an FI document, or for example, an accounting document from a reposting.

Answer: source document

4. The Default Account Assignment...

Answer: C

You define the default account assignment in the cost element master record.

This is a default value that can be overwritten.

The assignment objects defined for automatic account assignments therefore take priority over the additional account assignments for the default account assignment.

5. A validation can always contain only one step

Answer: False

One validation is created per controlling area. A validation can contain several steps.

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Test Your Knowledge

6. The substitution is stronger than (has priority over) the validation.

Answer: False

The validation has priority over (is stronger than) the substitution.

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7. The manual posting is always related to the Financial Management document.

Answer: False

The manual reposting is created without relation to the FI document.

8. A sender check is carried out for the transaction “Reposting of Line Items”.

Answer: True

When reposting line items, a sender check is carried which is not the case for manual repostings.

9. The internal order can be the sender of a direct activity allocation.

Answer: False

The internal order can not be the sender of a direct activity allocation, only the receiver.

10. The system requires the activity type for the direct activity allocation.

Answer: True

The activity type is required for activity allocation.

11. Debiting and crediting can be executed under a primary or a secondary activity type.

Answer: False

Debiting and crediting that results from a direct activity allocation are executed a secondary cost element of the category 43.

Unit Overview

Unit 4

In document TFIN20_1 (Page 148-163)