Activity Based Costing with the Process Template

Description

The process template is the basis of a new allocation approach for process costs to cost objects in plan and actual. The goal is to replace or enhance overhead rates with orginator-based cost assignments.

The template serves in active determination of the required business prcesses and their allocated process quantities (cost drivers). To determine the quantities, you can define formulas in the template that calculate the allocation values during processing. The R/3 System offersa large library of predefined formulas, which you can add to if necessary, allowing you access to information from many other R/3 Systemcomponents.

Allocation with the process template, as in allocation with the aid of overhead rates, can proceed on the basis of two approaches:

In both cases, a process quantity structure exists for valuation with the relevant process prices. The environment for template valuation is based on the cost objects to be debited with the costs. The followingcost objects can be used in Activity Based Costing: