1. FORMULATING COST SETUP
Show Slide #1: Formulating Cost Setup
Title: Formulate Cost Setup
References:
DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation
DFAS-IN MANUAL FY, The Army Management Structure
GFEBS Performance Support Website (PSW)
Section I. Administrative Data
Academic Hours/Methods
01 hrs. / 00 min. DSL (small or large group discussion)
02 hrs. / 20 min. PE (Practical Exercise)
00 hrs. / 00 min. Test
00 hrs. / 00 min. Test Review
03 hrs. / 20 min. Total Hours
Section II. Introduction:
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 05 min.
Media: PowerPoint Presentation
Facilitator Material: Each primary facilitator should possess a lesson plan, evaluation sheet, scenario event list for exercises, and summary sheet containing the above noted references.
Learners Material: Learners should possess course handouts, access to all systems for exercises, summary sheet containing the above noted references portable laptop, and standard classroom supplies.
Note: "All required references and technical manuals will be provided by the local Command“
Motivator (Concrete Experience): Cost Accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization’s goals. The Controlling Module is the area within GFEBS that enables Cost Management. Cost planning, analysis, measurement, and reporting to be done in the CO module.

2. Terminal Learning Objective
Action: Formulate Cost Setup
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Communicate Planning Primary Costs
Communicate Planning Secondary Costs
Show Slide #2: Terminal Learning Objective
Facilitator’s Note: Read/State the TLO
Action: Formulating Cost Setup
Conditions: You are a GFEBS data processor with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With at least 80% accuracy:
- Communicate planning primary cost
- Communicate planning secondary cost
Safety Requirement: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low.
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation: You will be given a graded 25 question exam, which will cover this task. A passing score on the exam is 80%.

3. Associated Terms with Cost Setup
Show Slide #3: Associated Terms with Cost Setup
Facilitator’s Note:
On the above slide are the terms associated with Formulating Cost Setup. Below are the definitions:
Cost Object: Cost Objects are master data where costs are collected to measure an activity, output, or item. For example, a cost object can be a cost center, internal order, or business process to capture the cost of an organization, a function, task, product, service, or a customer.
Primary Cost: Expenditures initially incurred that can be traced directly to an object, such as today’s Elements of Resource (EOR).
Secondary Cost: Costs assigned to one entity that consumes products/services provided by another entity.
Cost Center: A unit of the organization from a costing perspective and are used to collect costs. Cost Centers are used to track and manage costs for responsibility segments of the Army.
Cost Element: A Cost Element indicates the type of cost (or expense) associated with a posting, much in the same way that a General Ledger Account functions.
Activity Type: An Activity Type is a cost object that represents a group of resources within a Cost Center. These resource groups have capacity and a unit of measure such as: labor hours, machine hours, square footage, etc. Activity Types are consumed and used to the produce the products and services of the organization.
Internal Orders: Cost objects used to plan, collect, monitor, and settle the costs of specific jobs and tasks. Internal Orders are used to monitor the costs of short term, long-term, and recurring activities or programs.
Business Process: Cost object used to capture costs of cross-functional activities. This cost object will enable the Army to allocate cost to receiving objects based on a rate of consumption.
Work Breakdown Structure Elements (WBS): WBS elements are activities in the WBS used for planning and updating cost data. Some examples of WBS Elements are: Tasks, Partial tasks that are further subdivided, and work packages.

4. Determine Cost Elements Cost Elements = Origin of costs
Primary
Cost Elements
Primary cost elements arise through the consumption of production factors that are sourced externally.
Secondary
Cost Elements
Secondary cost elements arise through the consumption of production factors that are provided internally.
Show Slide #4: Determine Cost Elements
Section III. Presentation.
Learning Step / Activity 1. Communicate Planning Primary Costs
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 50 min.
Media: PowerPoint Presentation, Handout
Facilitator’s Note: Learners should refer to any summary sheets or notes during this lesson.
Facilitator’s Note:
The two Types of Cost Elements are as follows:
Primary Cost Elements
Secondary Cost Elements
Cost Elements describe the origin of costs. The Primary Cost Elements arise through the consumption of production factors that are sourced externally. Secondary Cost Elements arise through the consumption of production factors that are provided internally.

5. Planning Primary Cost “Failing to Plan is Planning to Fail
Planning Primary Cost “Failing to Plan is Planning to Fail.” -Alan Lakein
Business expenses for the materials and labor used in producing the organization’s goods or services
Cost element corresponds to GL account
Measures total cost of production inputs required to create a given output
Managers plan 100% of primary cost to cost centers
Planning against other cost objects (Internal orders, WBS elements, business processes) accounts for additional, unanticipated cost directly associated with a specific cost object
For additional cost (internal orders, WBS elements, or business processes), managers of that cost object must create a plan to accommodate additional costs
Show Slide #5: Planning Primary Cost
Facilitator’s Note: Primary Cost is business expense for the materials and labor used in producing the goods or services of an organization. It is a way of measuring the total cost of the production inputs required to create a given output. Examples of Primary Cost include:
- The Primary Costs for creating a can of soda would include raw materials such as:
- The aluminum needed for the cans
- Ink to customize the cans with the product’s brand name and logo

6. Planning Primary Cost : Example
Primary costs for creating a can of soda include raw materials
Aluminum for the cans, ink to customize, apply products brand, name and logo
Soda ingredients (carbonated water, caramel coloring, caffeine, sugar or aspartame and preservatives)
Freight charges to transport raw materials to the manufacturing plant
Wages, taxes and benefits paid to or on behalf of the employee involved in the manufacturing process
Show Slide #6: Plan Primary Cost Example
Facilitator’s Note:
Break down all of the materials used in creating that can of pop. Begin with the ingredients. The ingredients include Carbonated water, caramel, coloring, caffeine, sugar or aspartame and preservatives. Also, the freight charges to transport the raw materials to the manufacturing plant. Lastly, the wages, taxes and benefits paid to or on behalf of the employee involved in the manufacturing process.
Cost to produce a given
output = A can of soda

7. Planning Primary Cost By Cost Center
Show Slide #7: Planning Primary Cost by Cost Center
Facilitator’s Note:
Refer to VG#6. In this illustration is an example of a TRADOC school that represents a cost center; within the cost center is the primary cost categories and the expected annual planned cost.
In the Example: (Expense – Labor – Primary Cost Element ** - Planned Cost 3,000,000) (Travel – Primary Cost Element T0) – Planned Cost 5,000) Contract Services – Primary Cost Element ** - Planned Cost 10,000) (Materials – Primary Cost Element ** - Planned Cost 6,000) (Equipment – Primary Cost Element – Planned Cost 15,000)

8. Initial step for Cost Planning in GFEBS Set Planner Profile
Set Planner Profile if required, this step was performed in the previous lesson.
While GFEBS Security will most likely have updated the planner profile for your role.
In the instance where your planner profile may not have been set prior to you start your role as a Cost Plan Maintainer – Use Walkthrough Procedure 7.0.
This transaction should be completed the first time you access GFEBS to perform cost planning and does not need to be completed again.
Show Slide #8: Initial step for Cost Planning in GFEBS - Set Planner Profile
Facilitator’s Note:
To begin with, set planner profile if required, this step was performed in the previous lesson. GFEBS Security will most likely have updated the planner profile for your assumed role. In the instance where your planner profile may not have been set prior to your start your role as a Cost Plan Maintainer – Use Walkthrough Procedure 7.0. Lastly, this transaction should be completed the first time you access GFEBS to perform cost planning and does not need to be completed again.

9. Conduct Practical Exercises
Show Slide #9: Conduct Practical Exercises
Practical Exercises / Walkthrough Procedures for: 7.1, KP06: 7.2, KP07: 7.3, KPF6: 7.4, KPF7
Method of Instruction: PE - Practical Exercises (Hands-On/Written)
Facilitator to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 40 min.
Media: Printed Reference Material, Practical Exercise, Handout, GFEBS access
General Information: (Introduction / Objective) These practical exercises simulate a scenario that measures your ability to enter a transaction code in GFEBS in order to achieve a certain result. The first PE measures your ability to Plan a Primary Cost on a Cost Center in GFEBS. The second merely displays the information in GFEBS. Third, Plan Primary Costs on Internal Order in GFEBS, and the final is to display that information.
Special Instructions: N/A 9

10. Walkthrough: Plan Primary Cost on a Cost Center in GFEBS
Transaction Code: KP06 Used Walkthrough Procedure 7.1
All transactions performed in this lesson will be individually processed by the
student. The walkthrough phase was performed in a previous lesson.
Note
Show Slide #10: Walkthrough: Plan Primary Cost on Cost Center in GFEBS
Facilitator’s Note:
All transactions performed in this lesson will be individually processed by the student. The walk phase was performed in a previous lesson. This first practical exercise measures your ability to Plan a Primary Cost on a Cost Center in GFEBS

11. Walkthrough: Display Cost on Cost Centers in GFEBS
Transaction Code: KP07
Used Walkthrough Procedure 7.2
All transactions performed in this lesson will be individually processed by the
student. The walkthrough phase was performed in a previous lesson.
Note
Show Slide #11: Walkthrough: Display Cost on Cost Centers in GFEBS
Facilitator’s Note:
Have the students go over the Practical Exercise and talk about the results with one-another. Be advised, all transactions performed in this lesson will be individually processed by the
student. The walkthrough phase was performed in a previous lesson.

12. Walkthrough: Plan Primary Costs on Internal Order in GFEBS
Transaction Code: KPF6
Used Walkthrough Procedure 7.3
All transactions performed in this lesson will be individually processed by the
student. The walkthrough phase was performed in a previous lesson.
Note
Show Slide #12: Walkthrough: Plan Primary Costs on Internal Order in GFEBS
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.3 Transaction Code: KPF6. Again, be advised that all transactions performed in this lesson will be individually processed by the student. The walkthrough phase was performed in a previous lesson.

13. Walkthrough: Display Primary Costs on Internal Order in GFEBS
Transaction Code: KPF7
Used Walkthrough Procedure 7.4
All transactions performed in this lesson will be individually processed by the
student. The walkthrough phase was performed in a previous lesson.
Note
Show Slide #13: Walkthrough: Display Primary Costs on Internal Order in GFEBS
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.4 Transaction Code: KPF7. Again, be advised that all transactions performed in this lesson will be individually processed by the student. The walkthrough phase was performed in a previous lesson.

14. LSA #1 Check on Learning
Q1. T/F: Primary costs includes the cost of the raw materials in any given product.
A1. True (Ref. slide 6)
Q2. ______ ______ are used to track and manage costs for responsibility segments of the Army
Fund Centers / Cost Centers / Functional Areas / Accountants
A2. Cost Centers (Ref. slide 3)
Show Slide #14: LSA #1 Check on Learning
NOTE: Read and ask the following check on learning question and facilitate discussion on answers given.
NOTE: The answer to each question will appear when you hit enter.
Q. T/F: Primary costs includes the cost of the raw materials in any given product.
A. True (Ref. slide 6)
Q. ______ ______ are used to track and manage costs for responsibility segments of the Army
Fund Centers / Cost Centers / Functional Areas / Accountants
A. Cost Centers (Ref. slide 3)

15. LSA #1 Summary Show Slide #15: LSA #1 Summary
Facilitator's Note: On the first part of the lesson, we identified Key terms as it relates to Cost set-up. We then explained determining between the Primary and Secondary Cost elements. Prior to the Practical Exercises, we covered the initial steps for “Setting a Planner Profile.” We then conducted 4 Practical Exercises.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

16. Plan a Secondary Cost Our focus in this lesson will be direct
Secondary cost are all costs that are available to or have been moved from one object to another
Total cost is comprised of primary and/or secondary costs, depending on the cost object
Can move by the following allocation methods:
Direct Activity Allocation
Indirect Activity Allocation Cycle
Assessment cycle
Distribution cycles
Settlement
Costing Sheet
Show Slide #16: Plan a Secondary Cost:
Learning Step / Activity 2. Communicate Planning Secondary Cost
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 50 min.
Media: PowerPoint Presentation, Handout
Facilitator’s Note:
Secondary Cost are all costs that are available to or have been moved from one object to another. Total cost is comprised of primary and/or secondary costs, depending on the cost object. Can move via any of the following allocation methods:
- Direct Activity Allocation
- Indirect Activity Allocation Cycle
- Assessment cycles
- Distribution cycles
- Settlement
- Costing Sheet
Our focus in this lesson will be direct
activity allocation. The others have
been or will be discussed later.

17. Direct Activity Allocation
Direct internal activity allocation activity output is measured, entered, and assigned
Corresponding cost occurrence are known as tracing factors
Tracing factors are known as activity types in cost activity types
Sending objects must exist in order for them to be allocated in GFEBS.
- Activity Type
- Business Process
Show Slide #17: Direct Activity Allocation
Facilitator’s Note:
In Direct Internal Activity Allocation, the activity output is measured, entered, and assigned. In order for this to take place, the corresponding measurable tracing factors (unit of measure for cost occurrence. In Cost Center Accounting, these tracing factors are knowns as Activity Types. The following Sending Objects must exist in order for them to be allocated in GFEBS.
- Activity Type
- Business Process

18. Activity Type
Cost Master Data Element represents a group of resources within a cost center
They have capacity and a unit of measure such as:
-Labor hours
-Machine hours
-Square footage
Are consumed and used to produce the product or service
Show Slide #18: Activity Type
Facilitator’s Note:
Cost object that represents a group of resources within a cost center. They have capacity and a unit of measure such as:
- Labor hours
- Machine Hours
- Square footage
These are consumed and used to produce the product or service.

19. Activity-Based Costing (ABC)
Is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each
Using ABC, allows an organization to estimate the cost elements of the entire cost to produce a product, activity and/or provide a service
This will assist both the RM and OM to make better informed decisions
Show Slide #19: Activity-Based Costing (ABC)
Facilitator’s Note:
This is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. By using ABC, an organization can soundly estimate the cost elements of the entire cost to produce a product, activity and/or provide a service. This will assist both the RM and OM to make better informed decisions.
Additionally, ABC helps to reduce costs by providing meaningful information on the opportunities available for reducing costs. Lastly, some costs are termed as non-manufacturing costs, for example, advertisement. Even though, advertisement is a non-manufacturing cost which constitutes a major portion of the total cost of any product. These non-manufacturing costs can be easily allocated since the relationship between costs and its causes can be properly understood by using Activity Based Costing

20. Move Costs from Cost Center to Internal Order Secondary Cost Planning
Show Slide #20: Move Costs from Cost Center to Internal Order
Facilitator’s Note:
TRADOC School – Activity Types – Rate/U of M – Internal Orders: Ref to VG#15 Discuss with the students. The difference between the two. A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center). An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline. Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup. An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers. 
When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.  

21. Business Process
Cost Object capture costs of cross-functional activities
Allows the Army to allocate cost to receiving objects based on rate of consumption
Business process rates and units of measure are entered into GFEBS for plan assignments, actual costs assignments, and reporting. (GFEBS can also calculate rates automatically)
Rates for business processes appear once and do not link to cost center
Show Slide #21: Business Process
Facilitator’s Note:
Cost objects captures costs of cross-functional activities. It enables the Army to allocate cost to receiving objects based on a rate of consumption. Business process rates and units of measure are entered into GFEBS for plan assignments, actual costs assignments, and reporting. (GFEBS can also calculate rates automatically.) Rates for business processes are not linked to cost centers and only appear once.

22. Move Cost from Cost Center to Business Process Secondary Cost Planning
Show Slide #22: Move Cost from Cost Center to Business Process
Facilitator’s Note:
Secondary Cost Planning move Cost from Cost Center to Business Process. In addition to primary costs, secondary costs are often incurred during the production of cost center activity. This is because a cost center must often take activity from other cost centers to produce its own activity. Secondary costs on the cost center result from internal allocations, such as activity allocations or assessments. To get meaningful periodic comparisons of plan and actual data, you must plan secondary costs as well as primary costs. You can plan secondary costs as value-based (assessment or order settlement) or quantity-based activity input.

23. Determine Plan Values of Statistical Key Figures (SKF)
SKF’s
Can be projected or actual
When entered as square footage they are unlikely to change during the execution year
Planned manually or transferred from external systems.
This activity focuses on inputting values for SKF’s.
Show Slide #23: Determine Plan Values of Statistical Key Figures
Facilitator’s Note:
Estimates of SKFs can be planned. or actual SKFs that are unlikely to change during the execution year can be entered (square footage). SKF’s can be planned manually or transferred from external systems. This activity focuses on inputting values for SKF’s.

24. Calculate Planned Overhead Costs: Assessments and Distributions
Indirect costs, overhead or other support costs transferred to receivers for automated planning through planned settlements and cost assignments
Before executing cost assignments and settlements:
Headquarters cost analysts and managers establish sender and receiver guidelines between cost collectors
In this step, those rules are implemented to perform planned costs
Cost assignment and settlements are performed during the assessment and distribution cycles
Show Slide #24: Calculate Planned Overhead Costs: Assessment and Distributions
Facilitator’s Note:
Calculate Planned Overhead Cost: Indirect costs (overhead or other support costs) transfer to receivers for automated planning through planned settlements and cost assignments. Before executing cost assignments and settlements. Headquarters cost analysts and managers define sender and receiver rules between cost collectors. In this step, those rules are run to move planned costs.

25. Assessments and Distribution
Used for value-based cost assignments.
Total direct costs are planned on the cost collection objects.
If distributions are used:
Original planned direct costs on the sender are transferred to receivers by primary cost elements.
If assessments are used:
Overhead and indirect support costs are assigned by secondary cost elements.
Example:
An overhead cost center could be used to collect shared costs for a group of three cost centers.
Each cost center will equally share overhead
1/3 of the total overhead costs will be collected to each receiver at the end of each month.
Show Slide #25: Assessments and Distribution
Facilitator’s Note:
Assessments and Distributions are used for value-based cost assignments. Total direct costs are planned on the cost collection objects. If Distributions are used, the original planned direct costs on the sender are transferred to receivers via primary cost elements. If Assessment are used, overhead and indirect support costs are assigned through a secondary cost element. In this example, an overhead cost center could be used to collect shared costs for a group of three cost centers. Because each cost center shares the overhead equally, 1/3 of the total overhead costs collected would be assigned to each receiver at the end of each month.

26. Planned Overhead Cost Transferred through Plan Settlement and Cost Assessment
Indirect costs or other support costs transfer to receivers for automated planning through planned settlements and cost assignments
Before executing cost assignments and settlements
Operational and resource managers must define sender and receiver guidelines between cost collectors
Guidelines will be executed to move planned costs by assessment and distributions
Assessments and distributions are used for value-based cost assignments
Show Slide #26: Planned Overhead Cost, Assessment, Distribution and Settlement
Facilitator’s Note:
Indirect costs (e.g. overhead or other support costs) will be transferred to receivers for automated planning through planned settlements and cost assignments. Before executing cost assignments and settlements. Operational and resource managers will need to define sender and receiver rules between cost collectors. Those rules will be executed to move planned costs via assessment and distributions. Assessments and distributions are used for value-based cost assignments.

27. Assign Planned Quantities of Activity Types and Processes Automatically
Manual planning for indirect costs are planned outside of GFEBS
Automated planning provides managers the option to run planned indirect activity and template cost assignments
Quantity-based assignment moves cost from sender to receiver
The cost center sends the quantity of an activity type or business process is then credited
Cost responsibility is transferred to the receiver during the planned assignment cycles
Cost Collecting CC/Sender
Show Slide #27: Assign Planned Quantities of Activity Types and Processes Automatically
Facilitator’s Note:
For manual planning, this step is skipped because indirect costs are planned outside of GFEBS. For automated planning, this step provides managers the option to run planned indirect activity and template cost assignments. This step uses quantity-based assignment methods to move costs from a sender to a receiver. The cost center that sends the quantity of an activity type or business process is credited and cost responsibility is transferred to the receiver during the planned assignment cycles.
Cost Transferred/Receiver(s)

28. Conduct Practical Exercises
Show Slide #28: Conduct Practical Exercises
Practical Exercises / Walkthrough Procedures for: 7.5, KP26: 7.6, KP27: 7.7, CP01: 7.8, CP03: 7.9, CP03: 7.1A, KPD6 (01 Hour Apply)
Method of Instruction: PE - Practical Exercises (Hands-On/Written)
Facilitator to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 50 min.
Media: Printed Reference Material, Practical Exercise, Handout, GFEBS access
General Information: (Introduction / Objective) These practical exercises simulate a scenario that measures your ability to enter a transaction code in GFEBS in order to achieve a certain result. The first PE measures your ability to Plan Activity, Capacity, and Rates for their respective Activity Types. The second Displays the Plan Data for the Activity Types. The third Creates Business Processes. The fourth Displays those Business Processes and Planning Quantities Prices. The fifth Determines the Plan and Changes the Actual Values of Statistical Key Figures. The final PE Displays the Statistical Key Figures Plan Data for the Internal Order.
Special Instructions: N/A 28

29. Walkthrough: Plan Activity, Capacity, and Rates for Activity Types
Transaction Code: KP26
Conduct Practical Exercise 7.5
Use this procedure to plan Activity, Capacity, and Rates for Activity Types:
Activity types are used to determine the quantity-based output of a cost center. The
plan activity quantities of production and service cost centers must be reconciled with
the master production schedule in logistics. This determines the required plan
activity quantity, as well as the plan capacity. Activity types are used primarily to
control the activity quantities on the cost centers. This enables you to measure the
operating rate or the rate of capacity utilization of a cost center.
Show Slide #29: Walkthrough: Plan Activity, Capacity, and Rates for Activity Types
Facilitator's Note:
This procedure was completed in the previous lesson. Use Walkthrough Procedure 7.5, Transaction Code: KP26. Be advised, activity types are used to determine the quantity-based output of a cost center. The plan activity quantities of production and service cost centers must be reconciled with the master production schedule in logistics. This determines the required plan activity quantity, as well as the plan capacity. Activity types are used primarily to control the activity quantities on the cost centers. This enables you to measure the operating rate or the rate of capacity utilization of a cost center.

30. Walkthrough: Display Plan Data for Activity Types
Transaction Code: KP27
Conduct Practical Exercise 7.6
Use this procedure to View Planned Activity, Capacity, and the Rates for Activity Types.
Show Slide #30: Walkthrough: Display Plan Data for Activity Types
Facilitator's Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.6 Transaction Code: KP27. This procedure is used to View Planned Activity, Capacity, and the Rates for Activity Types.

31. Walkthrough: Create a Business Process
Transaction Code: CP01
Conduct Practical Exercise 7.7
Use this procedure to Create a Business Process in GFEBS. The role for this process is the
Centralized Controlling Master Data Maintainer
Show Slide #31: Walkthrough: Create Business Process
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.7 Transaction Code: CP01. Use this procedure to Create a Business Process in GFEBS. The role for this process is the Centralized Controlling Master Data Maintainer.

32. Walkthrough: Display Business Process Planning Quantities Prices
Transaction Code: CP03
Conduct Practical Exercise 7.8
Use this procedure to View a Business Process and Process Planning Quantities in GFEBS.
The Centralized Controlling Master Data Maintainer role can execute this process.
Show Slide #32: Walkthrough: Display Business Process Planning Quantities Prices
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.8 Transaction Code: CP03. Use this procedure to View a Business Process and Process Planning Quantities in GFEBS. The Centralized Controlling Master Data Maintainer role can execute this process.

33. Walkthrough: Determine Plan and Changed Actual Values of SKF’s
Transaction Code: CP03
Conduct Practical Exercise 7.9
Use this procedure to Determine Plan and Changed Actual Values of Statistical Key
Figures in GFEBS. Again, the Centralized Controlling Master Data Maintainer role can
execute this process.
Show Slide #33: Walkthrough: Determine Plan and Changed Actual Values of Statistical Key Figures
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.9 Transaction Code: CP03. Use this procedure to Determine Plan and Changed Actual Values of Statistical Key Figures in GFEBS. Again, the Centralized Controlling Master Data Maintainer role can execute this process.

34. Walkthrough: Display the SKF’s Plan Data for Internal Order
Transaction Code: KPD6
Conduct Practical Exercise 7.1A
Use this procedure to Display the Statistical Key Figures Plan Data for Internal Order in
GFEBS. Again, the Centralized Controlling Master Data Maintainer role can execute
this process.
Show Slide #34: Display Statistical Key Figures Plan Data for Internal Order
Facilitator’s Note:
This procedure was completed in the previous lesson. Used Walkthrough Procedure 7.1A Transaction Code: KPD6. Use this procedure to Display the Statistical Key Figures Plan Data for Internal Order in GFEBS. Again, the Centralized Controlling Master Data Maintainer role can execute this process.

35. LSA #2 Check on Learning
Q1. T/F: Managers will plan 75% of their Primary Cost on the cost centers and 25% to other objects? A1. False Q2. Which master data element is use to collect cost and measure an activities output? A2. Activity Types Q3. What do cost centers represent? A3. A unit of the organization from a costing perspective and also used to collect costs
Show Slide #35: LSA #2 Check on Learning
NOTE: Read and ask the following check on learning question and facilitate discussion on answers given.
NOTE: The answer to each question will appear when you hit enter.
Q: T/F Managers will plan 75% of their Primary Cost on the cost centers and 25% to other objects?
A1: False
Q: Which master data element are use to collect costs and measure an activities output?
A: Activity Types
Q: What do Cost Centers represent?
A: A unit of the organization from a costing perspective and also used to collect costs
NOTE: Additional question to ask the student’s;
Q: This master data element indicates the type of cost (or expense associated with a posting?
A: A Cost Element

36. LSA #2 Summary Show Slide #36: LSA #2 Summary
Facilitator's Note: During the last half of this lesson, we discussed the planning of a secondary Cost. We also covered Activity types and the Direct Internal Allocation to which it is associated with. Activity based Costing (ABC) was covered and it’s relation to the creation of a Business Process. Lastly, we discussed how to calculate planned overhead costs, assessments and Distributions. We finished this lesson up with the execution of 6 practical exercises.
“Or”
NOTE: Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

37. TLO Summary Action: Formulate Cost Setup
Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Communicate planning primary costs
Communicate planning secondary costs
Show Slide #37: TLO Summary
Facilitator’s Note: Restate the TLO
Action: Formulating Cost Setup
Conditions: You are a GFEBS data processor with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With at least 80% accuracy:
- Communicate planning primary cost
- Communicate planning secondary cost

38. Questions? Show Slide #38: Questions?
Facilitator’s Note: Field any unanswered questions that the student may have