Setting up Activity Types for Direct Activity Allocation

Objectives

After completing this lesson, you will be able to:

  • Describe the use of activity types
  • Recall key fields in activity type master records
  • Create activity types

Activity Types

Activity types are units that classify the activities performed on cost centers, for example:

  • consulting hours,

  • service hours,

  • units produced.

If a cost center provides activities for other cost centers or projects, this means that the resources of this cost center are used and the resource costs must be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation.

Activity output quantities are measured in activity units such as hours, pieces, kilowatt-hours, for example. You can post plan activity unit quantities as well as post the actual consumed for a period.

Usually once a year you maintain activity type cost rates for cost centers. That is, how much the cost center charges per activity unit provided. For example, the IT department charges €100 for each hour of service.

Activity Type Master Data

Select the highlighted area of the figure of the activity type master record to learn about important fields:

Activity Type Master Data Fields

Create an Activity Type

The manager of the IT department wants to track the hours (and subsequently the cost) their department spends supporting other departments. For this reason, they ask you to help them create an activity type in the system with which they can track these tasks.

Use the simulation to understand how to create activity type master data.

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