Activity type tutorials by Tom King
SAP activity types classify work performed by cost centers, such as machine hours or maintenance hours. The activity type category controls how quantities are recorded and allocated, while the activity price values the allocation.
This guide brings together Tom King's seven-part activity posting series. Compare the classic categories, choose a starting point, and follow the worked examples for direct, indirect, and target=actual activity allocation.
Edition and release note: These tutorials originated in 2017 and use classic SAP GUI examples. Their processes are relevant to ECC and applicable SAP S/4HANA on-premise or Private Edition configurations. SAP S/4HANA Cloud Public Edition has a restricted set of supported settings and processes; check your release and activated scope before applying an example.
In This Article
SAP Activity Type Categories at a Glance
| Category | Quantity Entry or Determination | Allocation |
|---|---|---|
| 1 | Manual entry | Direct allocation to a specified receiver |
| 2 | Indirect determination | Indirect allocation through cycle rules |
| 3 | Manual entry | Indirect allocation through cycle rules |
| 4 | Manual entry | No allocation to other objects |
| 5 | Target=actual calculation | Actual allocation based on planned inputs and operating rates |
Planning versus actual: Category 5 is used for actual allocation, with a different planning category such as 1, 2, or 3. Activity type categories and price indicators are separate settings: category 5 does not mean price indicator 5.
Explore the Seven-Part Activity Posting Series
Read the tutorials in order if you are new to activity types, or go directly to the category you need. The sequence below includes the introductory article and both category 2 examples.
Part 1: Activity Types, Categories, and Prices
Start with activity type master data, units of measure, allocation cost elements, and price indicators. This overview explains how activity quantities and prices connect sender cost centers with receiving cost objects.
Read the activity type overview →
Part 2: Category 1: Direct Activity Allocation
Follow the classic KB21N example to see how a specified activity quantity credits the sender cost center and debits the receiver. The tutorial also covers planning activity quantities, costs, and prices before posting.
Read the category 1 posting example →
Part 3: Category 2: Indirect Determination and Allocation
Explore how an indirect activity allocation cycle determines activity quantities and distributes them to receivers. This example introduces the sender/receiver relationships and tracing factors used in the allocation.
Read the category 2 allocation tutorial →
Part 4: Category 2 Continued: Automating Activity Quantities
Build on the first category 2 example. Compare using a statistical key figure with using activity quantities already recorded on receiver cost centers to drive the sender allocation.
Read the second category 2 example →
Part 5: Category 3: Manual Entry and Indirect Allocation
Use category 3 when the sender activity quantity is known, but the allocation to receivers should follow cycle rules. The tutorial contrasts this approach with category 2, where the sender quantity is determined indirectly.
Read the category 3 allocation tutorial →
Part 6: Category 4: Quantity Recording Without Allocation
See why an activity type can be useful even when no costs are allocated to other objects. Category 4 records activity on the cost center and supports activity-based target-cost analysis.
Read the category 4 tutorial →
Part 7: Category 5: Target=Actual Activity Allocation
Review the classic target=actual process, which uses planned activity inputs and receiver operating rates to determine actual activity allocations. The tutorial includes examples using transaction KNMA rather than an indirect activity allocation cycle.
Read the category 5 allocation examples →
Choose an Allocation Method
Start with the business requirement: do you know the sender quantity, the receiver, both, or neither?
- Known quantity and receiver: review the category 1 example.
- Quantity derived from receiver information: review the category 2 examples.
- Known sender quantity with rule-based distribution: review category 3.
- Record activity without allocating costs: review category 4.
- Derive actual allocation from planned relationships: review category 5 and its prerequisites.
For manufacturing context, start with the activity type overview and category 1 tutorial, then follow their links to work center assignments and Product Costing.
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Glossary
Activity Type
A classification of the work supplied by a cost center, measured in units such as hours or kilowatt-hours.
Activity Type Category
A setting that controls activity quantity recording, determination, and allocation. Planned and actual categories can differ where supported.
Activity Price
The rate used to value an activity quantity for a cost center, activity type, and period. The allocation value also depends on the price unit.
Cost Center
An organizational unit that collects costs for a defined area of responsibility and can supply or receive internal activities.
Direct Activity Allocation
An allocation with a specified sender cost center, activity type, quantity, and receiver.
Indirect Activity Allocation
An allocation that uses configured sender/receiver relationships and tracing factors to determine activity quantities or distribute them.
Statistical Key Figure
A measurable value, such as headcount or floor area, that can serve as an allocation basis.
Target=Actual Activity Allocation
A classic allocation method that uses planned activity inputs adjusted for receiver operating rates to determine actual activity allocation. It uses actual activity type category 5.
About the Series
Tom King wrote the original seven-part activity posting series. Learn more about his SAP Controlling background on Tom King's speaker profile.