1. Process Activity Types
JJF
Show Slide #1: Process Activity Types
Title: Define Obligation Management
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
02 hrs. / 20 min. DSL (small or large group discussion)
01 hrs. / 00 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 management provides the detailed cost information management needs to control current operations and plan for the future. One of the expectations of cost accounting, which is an integral part of Army’s culture today, is that information and reports will help managers and/or commanders evaluate operations in several areas: material costs, labor costs, overhead costs, measuring efficiency, budgeting---just to name a few. One of Army’s secondary goals of GFEBS is to make Commanders and managers responsible for their decision. But in order to provide relevant reports used to assess costs and decisions, cost elements must be assigned to data. Activity Type is one such element.
Labor hours, Machine hours, Square footage

2. Terminal Learning Objective
Action: Process Activity Types
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 80% accuracy learners must demonstrate proficiency with:
Communicate Activity Type Concepts
Show Slide #2: Terminal Learning Objective
Facilitator’s Note: Read/State the TLO
Action: Process Activity Types
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 Activity Type Concepts
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%.
Instructional Lead-In: Should costs for pre-deployment exercises at the National Training Center be the same year after year? Should the type of unit(s) being certified during the exercises programmed in a given FY enable budget distribution? Just how does Activity Type influence costing? This lesson focuses on the use of activity type and the ability to establish, track, and even change activity type in GFEBS. 2

3. Activity Types and Rates
What are Activity Types and how are they used?
Cost Objects represent a group of resources within a cost center consumed in the production of products and services provided by an organization
Activity Type is a cost object that represents a group of resources within a Cost Center that is measurable in units such as: labor or machine hours, square footage, exercises completed or other quantitative unit.
Used to plan, allocate, and control costs for quantity-based allocations.
Used to reassign activity costs to cost objects
Each Cost Center in the GFEBS solution has zero, one, or many Activity Types assigned.
Activity Type Rates can either be set manually or calculated internally.
Show Slide #3: Activity Types and Rates
Section III. Presentation.
Learning Step / Activity 1. Communicate Activity Type Concepts
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 02 hrs. / 20 min.
Media: PowerPoint Presentation, Handout
NOTE: Learners should refer to any summary sheets and/or notes during this lesson.
a. Activity Types: 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 produce the products and services of the organization. For example: A Maintenance Cost Center employs engineers and technicians with activity types (e.g. ENG hrs and TECH hrs). When maintenance work is performed, each employee’s labor is charged to a receiving cost object using those corresponding activity types.  Activity Types are assigned rates to be used during Cost Assignments. These rates are determined based on internal management decisions and can include direct and indirect costs and can be based on standard or actual cost. Activity Types are used to plan, allocate, and control costs for quantity-based allocations. Each Cost Center could have multiple Activity Types assigned to it.
b. Activity Type Rates: During Cost Planning, rates of Activity Types can either be set manually or they can be calculated internally based on the total costs planned for the Cost Center and the total Activity Type capacity. Standard Rates can be used to measure labor cost and equipment use. For example: If Cost Center A is expected to incur $10,000 in costs for a given period, and Cost Center A has the capacity to produce 10,000 hours of its only activity, Activity Type 1, the system can internally calculate the rate for Activity Type 1 to be $1/hr. 3

4. Activity Type Concepts
Plan, Allocate and Control Costs 1
Many
Cost
Center
Capacity and Unit of Measure
Consumed
Used to Produce
Products/
Services
Show Slide #4: Activity Type Concepts
Facilitator’s Note: Review Slide with students. As far as the price-set is concerned, Set this prior to an organization coming onto GFEBS
or during cost planning
Prices – Set prior to an organization coming onto GFEBS
or during cost planning
Product or Service X Price/Activity Type 4

5. Activity Type Concepts (Cont.)
Activity Type Example
Cost Center
Activity Type
People e.g. RMO
Manager & Analyst
Show Slide #5: Activity Type Concepts (Cont.)
Facilitator’s Note: Here are a few examples of Activity types as it pertains to a Cost Center. Both examples dealing with Resource Managers Office and the Motor Pool.
Blended e.g. Motor
Pool
Mechanic & Vehicle 5

6. Activity Type Concepts (Cont.)
Activity Types are a new concept to the Army
They are considered cost drivers
Example: Labor cost, when personnel are working on more then one task and each task must be charged for the hours and rate performed.
Activity types will allow for calculating each rate and charging to appropriate organization and assigning (driving, allocating) cost to the designated cost object.
Show Slide #6: Activity Type Concepts (Cont.)
Facilitator’s Note: Activity Types are a new concept to the Army. They are considered to be cost drivers. Example: Labor cost, when personnel are working on more then one task and each task must be charged against for the hours and rate performed. Activity types will allow for calculating each rate and charging to appropriate organization and assigning (driving, allocating) cost to the designated cost object. 6

7. GFEBS Cost Objects v. Legacy Data Elements
Show Slide #7: GFEBS Cost Objects VS. Legacy Data Elements
Facilitator’s Note: Refer and discuss VG# 5 GFEBS Cost Objects VS. Legacy Data Elements Mechanics who repair heating and air conditioning units would have an Activity Type. Hourly rates can then be assigned to these Activity Types and used to allocate costs from a sender Cost Center (in this example the Mechanic’s Cost Center) to a receiver Cost Center based on the amount of activity performed. During Activity Allocation the quantity of hours will be multiplied by the Activity Type rate to determine the amount of cost to be allocated. For the Army, Activity Types could be used to track standard rates for: Labor and Equipment 7

8. Activity Types & Allocation
Description
Value Base Allocation
Involves Allocating Actual Dollar Amounts
Quantity-Based Allocation
Involves Allocating a Quantity (e.g., hours)
Show Slide #8: Activity Types & Activity Allocation
Facilitator’s Note: Within GFEBS there are two main types of Cost Allocations: Inform the students that activity types are the Cost Objects used to classify these different activities, and therefore
activity types are strictly used for Activity Allocation purposes.
(1) Value-based Allocations: Involve allocating actual dollar amounts.
(2) Quantity-Based Allocations: Involve allocating a quantity, which is usually hours of some type of activity.
Activity Types are the Cost Objects used to classify these different activities, and
therefore Activity Types are strictly used for Activity Allocation purposes. 8

9. Criteria for Establishing and Changing
One Activity should be created in the GFEBS solution for every different type of activity that is produced by one Cost Center in support of another Cost Center within the organization.
Example: Mechanics who repair heating and air conditioning units would have an Activity Type.
- Hourly rates can then be assigned to these Activity Types and used to allocate costs from sender Cost Center (in this example the Mechanic’s Cost Center) to receiver Cost Centers based on the amount of activity performed.
Show Slide #9: Criteria for Establishing and Changing
Facilitator’s Note: One Activity should be created in the GFEBS solution for every different type of activity that is produced by one Cost Center in support of another Cost Center within the organization. For example, Mechanics who repair heating and air conditioning units would have an Activity Type. Hourly rates can then be assigned to these Activity Types and used to allocate costs from sender Cost Center (in this example the Mechanic’s Cost Center) to receiver Cost Centers based on the amount of activity performed. During Activity Allocation the quantity of hours will be multiplied by the Activity Type rate to determine the amount of cost to be allocated. 9

10. Criteria for Establishing and Changing (Cont.)
During Activity Allocation the quantity of hours will be multiplied by the Activity Type rate to determine the amount of cost to be allocated.
Activity Types are used to track standard rates for labor types, materials, overhead, and other measurable outputs.
Centralized versus Decentralized Element Control:
Activity Types standardized across installation establishment will be centralized.
Nonstandard Activity Types will be decentralized.
Show Slide #10: Criteria for Establishing and Changing (Cont.)
Facilitator’s Note: For the Army, Activity Types could be used to track standard rates for labor types, materials, overhead, and other measurable outputs. Centralized versus Decentralized Element Control: Activity Types standardized across installation establishment will be centralized. Nonstandard Activity Types will be decentralized. 10

11. Activity Type Examples
Show Slide #11: Activity Type Examples
Facilitator’s Note: This is found in the Student Material. Review the examples only to familiarize the student for future training purposes. 11

12. Conduct Practical Exercises
Show Slide #12: Practical Exercise
Practical Exercise / Define Obligation Management (01 Hour Apply)
Method of Instruction: PE - Practical Exercise (Hands-On/Written)
Facilitator to Learner Ratio: 1:25
Time of Instruction: 01 hrs. / 00 min.
Media: Printed Reference Material, Practical Exercise, Handout
General Information: (Introduction / Objective) this practical exercise simulates a scenario that measures your ability to properly create and change an activity type.
Special Instructions: N/A 12 12

13. T-Code: KL01 Conduct Practical Exercise 14.1
Walkthrough: Create Activity Type
T-Code: KL01
Conduct Practical Exercise 14.1
Use this procedure to create an 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 unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types
are consumed and utilized to produce the products and services of the organization. Use this procedure to
improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity
type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the
organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be
costed differently than other pieces of equipment).
Show Slide #13: Walkthrough: Create Activity Type
Facilitator’s Note: T-Code KL01, PE Use this procedure to create an 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 unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types are consumed and utilized to produce the products and services of the organization. Use this procedure to improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be costed differently than other pieces of equipment). 13

14. T-Code: KL02 Conduct Practical Exercise 14.2
Walkthrough: Change Activity Type
T-Code: KL02
Conduct Practical Exercise 14.2
Use this procedure to change an 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 unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types
are consumed and utilized to produce the products and services of the organization. Use this procedure to
improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity
type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the
organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be
cost differently than other pieces of equipment).
Show Slide #14: Walkthrough: Change Activity Type
Facilitator’s Note: T-Code KL02, PE Use this procedure to change an Activity Type. Again, an Activity Type is a cost object that represents a group of resources within a Cost Center. These resource groups have capacity and unit of measure such as: Labor hours, Machine hours, Square Footage, etc. Activity Types are consumed and utilized to produce the products and services of the organization. Use this procedure to improve the utility/accuracy of cost information by adding more detail/specificity (e.g., Replacing a single activity type for “electrician, journeyman electrician” and senior electrician”) or when new Resources are added to the organization that do not fit into existing Activity Types (e.g., new, unique piece of test Equipment that needs to be cost differently than other pieces of equipment). 14

15. LSA #1 Check on Learning
Q1: ___ ___ ___ involve allocating actual dollar amounts.
A1:
Q2: ___ ___ ___ is an allocation method where activity quantities are known and allocated based on a rate defined for the activity type (Quantity Based).
A2:
Q3: T/F: Activity Types are consumed and used to produce the products and services of the organization?
A3:
Value-based Allocations
Direct Activity Allocation
Show Slide #15: 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.
Q1 ___ ___ ___ involve allocating actual dollar amounts?
A: Value-based Allocations
Q: ___ ___ ___ is an allocation method where activity quantities are known and allocated based on a rate defined for the activity type (Quantity Based).
A: Direct Activity Allocation
Q: T/F: Activity Types are consumed and used to produce the products and services of the organization?
A: True
NOTE: Additional questions for the students;
Q: What are Activity Types used for?
A: Used to plan, allocate, and control costs
Q: When should Activity Types be created in GFEBS?
A: For every different type of activity that is produced by one Cost Center in support of another Cost Center within the organization.
Q: How are Activity Type rates set?
A: Can either be set manually or they can be calculated internally based on the total costs planned for the Cost Center and the total Activity Type capacity.
Q: ______________involve allocating a quantity which is usually hours of some type of activity?
A: Quantity-Based Allocations
True 15

16. LSA #1 Summary 16 Show Slide #16: LSA #1 Summary
Facilitator's Note: During this lesson, we identified Activity Types and rates, and how they’re used. We also discussed Activity Type Concepts, GFEBS Cost Elements v. Legacy Data Elements, Activity Type Examples, Activity Types and Allocations, Criteria for Establishing and Changing Activity Types.
“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

17. Questions? 17 Show Slide #17: Questions?
Facilitator’s Note: Field any unanswered questions from the students at this time. 17

18. TLO Summary Action: Process Activity Types
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 at least 80% accuracy learners must demonstrate proficiency with:
Communicate Activity Type Concepts
Show Slide #18: TLO Summary
Facilitator’s Note: Restate TLO
Action: Process Activity Types
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 at least 80% accuracy:
- Communicate Activity Type Concepts 18