1. Integration And Reconciliation Of Cost Center Planning Cost center Input Output  Planned activity Planned capacity  Planned costs - personnel - auxiliary supplies - depreciation Activity output - telephone - insurance - energy maintenance  Activity input with internal allocation Costcenter Internal-order Production planning Human management Material management Asset management Financial accounting Plant maintenance Cost accounting

2. Planning Scope Consumption of operating supplies Direct labor costs Salaries Payroll fringe costs Vacation bonus Assessment costs Repairs Milling Welding Turning Drilling... Personnel costs Internal Allocation Plant maintenance Production 3 Production 2 Production 1 Carpentry Metalworking Electrician Lunch room Personnel... Production activities... Activities Production area Service cost centers Management

3. Planning Scope Activity-Dependent Planning Activity-Independent Planning Plan. activity  by activity type Primary Secondary Primary Secondary Cost Cost Cost Cost Planning Planning Planning Planning Detailed Planning Monthly Monthly Monthly Division Division Division * Plan reconciliation* Plan Distribution * Activity Price Computation* Plan Assessment * Calc. Planned Imputed Costs * Plan Revaluation

4. Cost center 4210 Activity typeLHR Planned quantity100 hrs Activity-dependent cost fixed$2,000 variable$3,000 Equivalence number1 Activity type MAN Planned quantity 100 hrs Activity dependent cost fixed $5,000 variable$8,000 Equivalence number2 Activity-independent cost$9,000 Total equivalence numbers3 Hourly cost rates +$3,000 $50 fixed $30 vbl. +$6,000$110 fixed $80 vbl. (9,000/3=3,000) (3,000*2=6,000) (3,000*1=3,000) Activity Dependent Vs. Independent

5. Activity Price Computation Cost center B Activity typeSHR Planned activity100 hrs Primary costs Wages$ 5000 Salaries$ 5000 Energy$ 1000 Total$11000 Secondary costs Activity from CCtr A50 hrs ? $ Cost center A Activity type REP Planned activity 1000 hrs Primary costs Wages$ 10000 Salaries$ 5000 Energy$ 1000 Total$ 16000 Secondary costs Activity from CCtr B 10 hrs ? $ 10 hrs 50 hrs

6. Activity Independent Secondary Cost Planning Sender cost center 4130 Activity typeMAINT Planned activity100 hrs Scheduled activity price10 hrs Fixed activity price$ 20 Fix.+vbl. activity price$ 60 Receiver cost center 4110 Activity-independent secondary costs: Activity type sent MAINT Activity input 10 hrs Planned fixed costs $ 600

7. Activity Independent Secondary Cost Planning Order Order Order Order cost element Type = 21 Sender cost center 4130 Activity typeREP Planned activity100 hrs Scheduled activity 10 hrs Fixed activity price$ 20 Fix+vbl. activity price$ 60 Receiver cost center 4110 Activity-independent order costs Activity type sent REP Activity input 10 hrs Fixed planned costs$ 600

8. Sender cost center 4110 Activity typeREP Planned activity100 hrs Scheduled activity 10 hrs Fixed activity price$ 20 Fix.+vbl. activity price$ 60 Receiver cost center 4420 Activity type SHR Planned activity3600 hrs Activity-dependent secondary costs: Activity type sentREP Activity input fix.+vbl.10 hrs of which fix. 3 hrs Planned fixed costs$ 320 Total planned costs?600 Activity Dependent Secondary Cost Planning

9. Planning Data Entry Cost element planning Year1996 Period1 thru 12 Cost Center2330: Production Activity Cost Costs Costs Consumption Type ElementVersion 0Version 1Version 0 430 000 1012 5 FINISH410 000 252310 MACHIN410 000 302912 650 000 1515 Fixed headers Fixed headers Fixed lead columns Fixed lead columns Adjustable column width Adjustable column width Exchangeable columns Exchangeable columns

10. Standard Distribution Keys (6,7) Input value is copied Total value is distributed into the periods over periods according following to the calendar days O: 24,000POldEntry New24,000 PValue N: 31,00012,0002,000 1 2,032.79 22,000 3,0003,000 2 1,901.64 32,0003,000 3 2,032.79 42,0003,000 4 1,967.21 52,0003,000 5 2,032.79 62,0003,000 6 1,967.21 72,0002,5002,500 7 2,032.79 82,0002,500 8 2,032.79 92,0002,500 9 1,967.21 102,0002,500 10 2,032.79 112,0002,0002,000 11 1,967.21 122,0002,000 12 2,032.79 Distribution key 6Distribution key 7

11. Cost Center Planning : Planner Profiles Sales and distribution Administration Production User ProfileLayout Planning scope CEl ActT CCtr CEl ActT CCtr CEl ActT CCtr Cost Center ElementValue Cost Center Element Value Activ. typeValue + +

12. Planning Transactions Define Planning Layout for Cost Centers Define Planning Profile Set Planning Profile Define User Planning Profile

13. The Version- Meaning In A Corporation General Version Definition Settings in the Operating Concern Settings in the Operating Concern Settings for Profit Center Accounting Settings for Profit Center Accounting Settings in the Controlling Area Settings in the Controlling Area Settings per fiscal year Settings per fiscal year Separate transactions for delta version Separate transactions for delta version

14. Performing The Revaluation Period 1 2 3 4 5 6 7 8 9 10 11 12 total Initial amount 2,000 24,000 Planning New initial line-items value 2002,200... 26,400 Reversal Planning New initial line-items amount -200 400 2,400 -200 400 2,400... 28,800 First revaluation 10%Second revaluation 20%

15. All X cost element Cost element cost elements groups Cost center 1 revaluation 1 revaluation X revaluations All cost 1 revaluation 1 revaluation X revaluations centers n cost center n revaluations n revaluations n x X revaluations groups Cost center groupS01000 Cost element groupOAS Cost center groupS02000 Cost element groupOAS Cost center groupS03000 Cost element groupOAS... Planning Data - Copy Function

16. 1994 Plan version a Periods 1 - 6 Cost center 1000 Planning transaction: activity-dependent direct costs  1994 Plan version y 1995 Plan version b Periods 7 - 12 Cost center 2000 1994 Plan version x Planning Data - Copy Functions

17. can be interchanged 1 Planning statistical ratios for: distribution assessment forming stat.ratios arithmetic formulae 2 Activity type planning Planned activity Planned capacity Planned output Activity price 3 Primary cost planning (manual) by cost element by activity type below cost element level with detailed planning 4 Secondary cost planning activity- independent activity- dependent 5 Calculating planned imputed costs Planning imputed costs using surcharges 6 Planned distribution Planning primary costs to be distributed Sequence Of Planning Steps

18. 7 Planned assessment Planning costs to be assesst 8 Indirect Activity alloc. Planning activity consuption acc. to key figures 9 Splitting splitt act. independent cost to act. types 10 Activity price computation calculated iteratively based on planned activity or capacity 11 Plan revaluation for alt. plan esti- mates (e.g. price changes) 13 Budgeting by cost center/ group Sequence Of Planning Steps Blocking plan version against changes 12 repeat when changes are made in previous steps