Manufactured Products Costing Demo Part 5: Activity Type Price and Quantity Planning

[@kamleshjadav3285]

Thanks Abdullah...Glad to see that product costing journey resumed !!!

[@AbdullahGalal]

Thank you Kamlesh, more to come!

[@Ramyengisetty1]

Good job Abdullah as always. Your presentation is very simple and very easy to grasp and understand without any doubt. Appreciate your efforts in making the videos.

[@AbdullahGalal]

My pleasure!

[@slocktv27]

good job sir, easy to understand !!!!

[@letteriomartines3766]

this is .98 but is 10K is terrific! Reminds me of a UAT popping up an error and stating "it is an error but it is normal!!" Very good job Abdullah!!! your videos are great

[@AbdullahGalal]

Thank you Letterio! and thank you for supporting the channel

[@sap7764]

GREAT EXPLANATION !

[@AbdullahGalal]

Thank you!

[@ebrahimahmed9166]

السلام عليكم ورحمة الله وبركاته ... Thanks abduallah for your video it's really rich and easy to understand ☺️

[@AbdullahGalal]

You're very welcome :)

[@sumit050607]

Thanks for the informative content Abullah, it will help a lot of people to understand the basic concept of Automatic Activity rate calculation with Cost center splitting profile. Keep up the good work and stay safe. :)

[@AbdullahGalal]

My pleasure, will do

[@viksan101]

Hi Abdullah! Many thanks for this video! Your content is always informative and yet easy to understand! Keep going :)

[@AbdullahGalal]

Thank you, I will

[@omeshsharma2307]

AG this was really good , you are just Brilliant, please do share video on Idoc and BTE

[@AbdullahGalal]

Thank you Omesh IDOC and BTE are not my areas of expertise sorry

[@xuanminhnguyen8813]

Thanks you for this video Abdullah, your presentation is very clear and easy to understand. In KSBL cost center planning report, it seems that SAP has divided the planned quantity and expenses by 12 period before doing activity rate calculation, it could explain the smal rounding issue 9999.98

[@AbdullahGalal]

Thanks a lot for the note Xuan, yeah this can be it

[@kathiresannagarajan7648]

Thanks for the nice video and good explanation with example. In my opinion, Cost center splitting is used only when we are not able to allocate/link the expenses to the available activity types. From your example, I think, we can directly link the Electricity & Depreciation costs with the activity type MACH via KP06. In this way, we will be able to maintain variable costs, if needed. Please let me know your views on this.

[@AbdullahGalal]

Sounds good! I never planned KP06 on activity types, only on cost elements, and then we use splitting structure to assign the Cost elements to activity types. You should test doing it with KP06, and confirm it works technically first, then in any project you can purpose both ways to the customer and he can choose

[@vasantraj9776]

Very good explanation. I have one doubt, what if our activity rate has both fixed and variable component. This video talks only about the fixed activity rate, does KSS4 & KSPI can also be used to calculate and allocate the variable part too?

[@AbdullahGalal]

Yes, the difference is only in reporting but the finctionality is the same

[@krishnadkc]

thank you for that.. you have showed the updating the Price (fixed), how variable price can be updated.. can you please help in explaining

[@victorvictoria6384]

¡Gracias!

[@AbdullahGalal]

Thank you Victor! this is the first heart I receive, not even sure how this works yet 🙂

[@gerardoromo9420]

Your videos are great!! thank you. Do you have another video where explain how to link the quantity from the SOP as you mentioned in this video?

[@AbdullahGalal]

Thank you Gerardo! I don't remember for sure, there are more than 250 videos 😅 but I believe I never did a demo for the planning process with SOP / MRP

[@avinashbhadange1985]

AG - SAP COPA vedio also if possible...great move in sap world

[@AbdullahGalal]

Thank you Avinash

[@sadiaaman6824]

Hi, what should we do with fixed production overhead cost in case when production is stopped in the plant and nothing is produced in current period ? discontinuity decision is not taken yet

[@fatemeedalatbin477]

thans galal,i have an question , why sap put activity price which you calculate in fixed price column in kp26 tcode? why it was not variable price of activity

[@amrmohamed574]

Thanks Mr Abdallah..do u have an excel sheet that can calculate the activity type for each one like machine.. Labor

[@henstanti]

Hi Abdullah, My controlling area currency is different from company code currency, I need to plan the activity at the company code level (instead of the controlling currency), do you have a session on creating a planning profile with a different object currency, please?

[@ChandrakantShriramLolge]

Dear Abdullah, I'm an elite member. Where will I find the customizing documents for Product costing & Margin analysis?

[@AbdullahGalal]

Hi! send an email to [e-mail]

[@timma6084]

Can you pls kindly explain more details about KSPP (Transfer plan activity requirement for production ) I also tried to run this TCODE, and it seems that it can display all plan activity quantity and transfer from PP side by period The output format: Cost center & activity type & material & plan order & Quantity Compared with manually input KP26, it is alternative operation? 1. If we put the activity quantity in KP26 as below Cost center activity type plan activity CC1 LAB1 20 2. can we also run KSPP again transfer the plan activity requirement for Production ? Cost center activity type activity scheduled CC1 LAB1 40 3. If yes, and it would be updated under KP26 to add or overwrite the original activity quantity ? Cost center activity type plan activity CC1 LAB1 20 +40 ? What is the detailed background for KSPP and the scenario for the usage. I am not sure how often will PP side to generate plan orders (to get the plan activity requirement) . If it's monthly generation of PP Plan activity requirement , and it also needs to do KSPP monthly to CO side ?

[@shashikalashanbhag8795]

The splitting structure set up starts from first entering cost center information in the initial screen. So I found the second step of assigning splitting structure to cost center redundant, unless I understood otherwise.

[@baassiia]

hello, Assuming I have sales plan in SAP and also BOMs, routings etc. What transaction I need to use to calculate activity QTy plan???

[@AbdullahGalal]

1) SOP process : sales operation planning: will move the sales qty to planned production qty 2)transaction KSPP: transfer activity quantities from PP: will convert production plan to activity quantities

[@NKMRHRS0817]

Hi, I am watching this video from Japan. This is the most simplest videos explaining manufacturing costing I have ever seen, and I really love it. However, I only have one thing that I can not be sure. Do you not have to included the $3,000 of electricity cost and $10,000 of depreciation cost that are allocated to the ADMIN01 cost center when calculating the manufacturing product costs?

[@AbdullahGalal]

Hi NK, glad to see the videos made it to Japan :) Admin expenses are non manufacturing expenses, watch this video again kzbin.info/www/bejne/jqK7mHqmqK6MrNU

[@omeshsharma2307]

No worries dear....due you know RAR....if yes can you share some details on it

[@AbdullahGalal]

No specific info to share, sorry

[@MrKiranahire]

+Abdullah Galal - SAP, CMA What about the Unbsorbed Costs? What we do for it?

[@AbdullahGalal]

I explained this as I remember, how you watched the full Product Costing playlist from the beginning ?

[@ДмитрийФёдоров-ч6ц]

9999.98 ~= (aprox eq by math round.) 9999.975 = 7500 (qty)* 1333.33 (rate for 1000 min)/1000 (mins).error is due to 1333.33 is math rouded from 1333.(3) = 1333.33333333333......