Cost Center Activity Type
Cost Center Activity Type
Hi,
What is the relationship between cost center and activity type.
We do define cost element for Activity Allocation which will be assigned to activity type. But
how can we know the this activity type is assign to the particular cost center and the cost will
flow to this cost center?
Please let me know if I need to give more clarification for the above query?
Regards,
Pankaj
Pankaj Thakker
December 26, 2009 at 09:19 AM
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Correct Answer
Hi
An activity type represents the capacity of a cost center e.g. labour hours or machine hours.
One can link the activity type to a cost center by planning the activity type on the cost center.
Hope this helps.
Manette
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12 replies
Dear Pankaj
In activity type we can maintain secondary cost element ,this secondary cost element capture
the activity cost with help of cos center
when activiy planning KP26 we can maintaing the activity price with combination of cost center,
so the activity take the price from that cost center
Regards
A.Guru Prasad
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Dear Guru,
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HI Guru,
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Hi
Yes the Cost Element must be of Secondary Cost Element Category only , category 43 for
Activity Allocation.
Regards
Venkat
Edited by: Venkat Dara on Dec 27, 2009 8:08 AM
Edited by: Venkat Dara on Dec 27, 2009 8:40 AM
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Dear Pankaj,
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HI,
Hi
An activity type represents the capacity of a cost center e.g. labour hours or machine hours.
One can link the activity type to a cost center by planning the activity type on the cost center.
Hope this helps.
Manette
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Hi,
Can one cost center have multiple activity type if yes , How ?
Plz tell.
Sahoo
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Hi,
One cost center can have multiple activity types linked with it.
For Ex. Take the example of pharmaceutical industry.
Diferent operations (resources / work center) like Raw material mixing, grinding,
demoisturising, sterilising, packing are done.
For this each operation machines, labors and others resorces are requires, based on which
you can define diferent activity types like Labor hour, machine hour and others based on cost
calculation requirement.
Hope it will clear to you. Pls get back in case of any query.
Thanks & Regards,
Taral Patel
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Dear Patel,