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Explain how to create activity type and then assign it to cost center. Activity types classify the activities produced in the cost centers within a controlling area. To plan and allocate the activities, the system records quantities that are measured in activity units. Activity quantities are valuated using a price (allocation price). In Overhead Cost Controlling, costs based on the activity quantity of an activity type are posted separately in fixed and variable portions. When you divide the activities of a cost center into activity types, you should consider whether the costs can be allocated effectively to the activity types. The prices of the activity types of a cost center can be either entered manually, or calculated by the system based on the costs allocated to the activities. Prices can be calculated either using plan costs or actual costs. You can plan, allocate, and control costs either at the activity type level of a cost center, or at the cost center level. You can enter actual costs at the cost center level. Costs entered at the cost center level are assigned using splitting. You can also assign the activity type of a cost center directly. This use was designed for certain application areas (such as personnel costs and depreciation postings). You can assign one activity type, multiple activity types, or no activity types to a cost center Typical examples of activity types for cost centers are machine hours, administrator hours or units produced. KA01 - Create Primary Cost Element for the new activities type. KL01 - Create Activity Type tied to the primary cost element. KP26 - Change Activity Type/Activity Price Planning - maintain the Variable price Assign the activity type to cost center using T code KP26. In the input screen of T code KP26 ,enter version as 0, from period 1 and to period as 12 and the Fiscal Year as 20xx. Click on Overview tab on top and key in costing details in this screen. After performing this ,while creating the work center ,this combination of activity type & cost center should be assigned. Activity create at KL01 assign the same at KP26 .
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