on 07-23-2014 2:44 AM
Dear Experts,
I need your help.
Our system currently uses planning transactions as below.
1. KP06 - Activity dependent and independent costs planning
2. KSPP - Transfer scheduled activity quantity
3. KPSI - Plan reconciliation (Move scheduled activity quantity into Plan activity quantity)
4. KSS4 - Plan cost splitting (Activity independent costs are assigned to actibity type)
5. KSPI - Plan price calculation for each activity
I have also configured the splitting structure and assigned it to cost centers.
I did the following test.
(1)KP06, KSPP, KPSI, KSS4, KSPI
(2)KP06, KSPP, KPSI, KSPI (<- KSS4 was skipped)
I noticed that the above two test cases calculate the same activity prices.
And the activity independent costs are correctly splitted in the case (2), too.
So, I'm now little confused because I thought that the KSS4 is the pre-required step for the KSPI.
Is the KSS4 no need for plan price calculation?
It seems to be that the KSPI includes KSS4 function.
Best Regards
Hello All,
I was following this thread from the beginning.It really helps everybody's understanding..
Thanks Rajneesh, Katsumi and Szymon for testing and sharing your knowledge and test results
Special thanks to Katsumi for identifying that kss4 can be skipped. Before this I was also under the impression that KSS4 is required for activity independent planning...
Proud to be part of this GREAT FORUM....
Cheers
Karthik
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Hello Karthikeyan,
Thank you for comments.
I'm glad to hear it.
But I have to say one important thing.
My test cases are only for method 22 of splitting structure.
I didn't test for the others.
In addition, there may be other possible reasons for this results.(e.g. my operation/setting is wrong...)
Therefore I cannot say that we can always skip KSS4.
I appreciate if anyone try to test the same cases and the other cases.
Best Regards,
Katsumi
Hi,
You are correct.
Splitting by default is executed as part of activity price calculation.
In KSPI please press "Settings" button.
You'll see check box "Execute intern. act. splitting".
By default is ON.
Regards,
Szymon
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Hello Szymon,
Thank you for replying.
I again set up the test environment and tried KSPI.
The results were as below.(test system is ECC6.0 EHP5)
Fiscal Year and Period: 2014/007
Plan data of KP06 and KP26:
Activity | Fix. | Val. | Plan Quantity |
---|---|---|---|
900,000(USD) | |||
ACT1 | 100,000(USD) | 100(H) | |
ACT2 | 200,000(USD) | 200(H) |
Result of KSPI ( "Execute intern. act. splitting" is unchecked and KSS4 is skipped in this test)
Object | Quantity | Total Price | Fixed Price |
---|---|---|---|
CCtr/ACT1 | 100(H) | 4,000(USD) | 3,000(USD) |
CCtr/ACT2 | 200(H) | 4,000(USD) | 3,000(USD) |
It seems to be that the KSPI includes KSS4 function (Activity independent costs are split in the KSPI)
How do you think about it?
Best Regards,
Katsumi
Hi Katsumi,
Thanks for update.
I think that in this particular case system response is as per Rajneesh suggestion:
"If you don't execute KSS4, the value planned at KP06 (as independent) is equally divided between the activities assigned to the cost center."
But lets try the following:
1. Create splitting structure in such way that all independent costs are to be assigned only to one activity (ACT1).
2. Then execute KSPI ( "Execute intern. act. splitting" is unchecked and KSS4 is skipped).
I think you'll get same results as before.
3. Execute KSPI with "Execute intern. act. splitting" is checked. System should execute splitting and assign independent costs only to activity ACT1.
Please let us know results.
Regards,
Szymon
Hi Szymon,
Thank you for replying.
And thank you very much for your time to use my question.
I tried new test cases as below.
At first, the Plan Quantity of ACT2 is changed to 0(H).
And I add one activity type ACT3.
I also changed the variable costs of ACT2 to 0 to avoid the cost calculation error.
Activity | Fix. | Var. | Plan Quantity |
---|---|---|---|
900,000(USD) | |||
ACT1 | 100,000(USD) | 100(H) | |
ACT2 | 0(H) | ||
ACT3 | 50,000(USD) | 50(H) |
I got the same results of two your test cases.
(1)Execute KSPI ( "Execute intern. act. splitting" is unchecked and KSS4 is skipped).
(2)Execute KSPI ( "Execute iintern.act. splitting" is checked and KSS4 is skipped).
Object | Quantity | Total Price | Fixed Price |
---|---|---|---|
CCtr/ACT1 | 100(H) | 7,000(USD) | 6,000(USD) |
CCtr/ACT2 | 0(H) | 0.00(USD) | 0.00(USD) |
CCtr/ACT3 | 50(H) | 7,000(USD) | 6,000(USD) |
I think that the results are calculated as below.
Fixed costs are not allocated equally.
At first, fixed costs are assigned to ACT1 and ACT3 for 100:50. The results are ACT1 = 600,000(USD) and ACT3 = 300,000(USD)
Next, the fixed price are calculated for ACT1: 600,000 / 100 = 6,000 (USD) and ACT3: 300,000 / 50 = 6,000(USD).
Therefore, the fixed cost are allocated correctly by ratio of plan quantities without KSS4.
Also, it seems to be that the "Execute intern. act. splitting" flag are not relevant to the splitting.
Do you think that my test results are wrong?
Best Regards,
Katsumi
Hi Katsumi,
Thansk for the update.
Your test confirms that independent costs are allocated proportionally to activities's qtys.
But that doesn't mean that the "Execute intern. act. splitting" flag are not relevant to the splitting.
Why don't you test the scenario suggested by me in previous reply.
Create splitting structure that allocates idependent costs only to one activity.
And check KSPI results with the box checked and un-checked.
Regards,
Szymon
Hello Szymon,
Sorry I had misread your test scenario.
I changed the Splitting Structure to assign fixed cost into only ACT1 activity.
And I tried the two cases as you said.
(1)"Execute intern. act. splitting" Flag on
(2)"Execute intern. act. splitting" Flag off
Unfortunately I got the same results.
All of fixed costs are assigned to ACT1. The fixed price of other ACT2 and ACT3 are 0 in both cases.
Best Regards,
Katsumi
Hi,
Which scenario did you execute firts with flag on or flag off.
If with flag on was first maybe results of splitting were saved and used during second run with flag off.
Change your splitting structure and assign fixed costs to activity ACT2 and then execute price calc but with flag OFF first.
Regards,
Szymon
Hi Szymon,
Thank you for replying.
The width of the column is narrow.
I reply you here.
Last time, I assigned fixed cost to only ACT1.
I changed the Splitting structure again.
Now the fixed cost are assigned to only ACT3.
Activity | Fix. | Ver. | Plan Quantity |
---|---|---|---|
900,000(USD) | |||
ACT1 | 100,000(USD) | 100(H) | |
ACT2 | 0(USD) | 0(H) | |
ACT3 | 50,000(USD) | 50(H) |
At first, I tried flag off.
(1)"Execute intern. act. splitting" Flag off and KSS4 is skipped.
Object | Quantity | Total Price | Fixed Price |
---|---|---|---|
CCtr/ACT1 | 100(H) | 1,000(USD) | 0 (USD) |
CCtr/ACT2 | 0(H) | 0(USD) | 0 (USD) |
CCtr/ACT3 | 50(H) | 19,000(USD) | 6,000 (USD) |
Next, I tried flag on.
(2)"Execute intern. act. splitting" Flag on and KSS4 is skipped.
Object | Quantity | Total Price | Fixed Price |
---|---|---|---|
CCtr/ACT1 | 100(H) | 1,000(USD) | 0 (USD) |
CCtr/ACT2 | 0(H) | 0(USD) | 0 (USD) |
CCtr/ACT3 | 50(H) | 19,000(USD) | 6,000 (USD) |
The results are the same.
If you have a test system and time, could you try it?
Best Regards,
Katsumi
Hi
If you don't execute KSS4, the value planned at KP06 (as independent) is equally divided between the activities assigned to the cost center. Say for example there is 100000 activity value planned as independent and there are 4 activities assigned to the cost center then system will distribute 25000 each to the individual activity and accordingly calculate the planned price. This is what I have seen so far.
In your case please check how many activities are assigned to the cost center and the prices coming following your second scenario are correct or not. of course they are the same in the two scenarios as you said.
Regards
Rajneesh Saxena
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Hi Rajneesh,
Thank you for replying my question.
At first, I also thought that as you are saying.
I know that the activity independent costs can be split equally in some cases.
(e.g. splitting strucutre is not defined)
But in this case, the activity independent costs seems to be split correctly in the KSPI based on the planned activity Quantity in spite of I didn't execute KSS4.
Best Regards,
Katsumi
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