Evaluating the Scope of Planning in Cost Center Accounting


After completing this lesson, you will be able to:

  • Outline cost center planning

Cost Center Planning

In this lesson, we will discuss the reasons for maintaining plan data and about the scope of cost center planning.

In SAP S/4HANA, there are two main methods of maintaining plan data:

  • Planning in SAP Analytics Cloud
  • Planning via file upload

The simplest method, and the one used currently in the Bike Company is planning via file upload. You use the special templates SAP S/4HANA provides for planning and maintain the relevant planning data using Microsoft Excel.

In this course, we will not cover planning with SAP Analytics Cloud.

Purpose of Planning

Planning is used to set organizational goals. Comparing actual operating results against planned values helps you identify variances that serve as signals to take corrective measures in your business operations.

Purpose of Planning

Check the figure to understand the different types of planning relevant to cost center accounting:

Types of Planning in Cost Center Accounting

Planning is always done in reference to specific planning categories. These categories help to store separate planned figures for different scenarios. For example, you could use one category for optimistic planning with a a decrease by 5% of advertising costs, another one for pessimistic planning taking into account an increase of 10% for the same.

You can define additional planning categories as required by the business.

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