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✅ Activity Price Priority via Costing Variant

Module: SAP CO – Product Costing / Cost Center Accounting
Use Case: Control which activity price SAP should prioritize (planned, actual, or manual) during cost estimation or order settlement, using the Costing Variant.

🎯 Objective

To configure the priority sequence for determining the activity price (e.g., labor hours, machine hours) used during:

• Cost estimates (standard costing, preliminary costing)
• Internal order or production order cost calculation

🔍 Why It Matters

In SAP, activity prices can exist in different forms:

SourceDescriptionPlan Price (KP26)Planned activity price from cost center planningActual Price (KSII)Calculated actual activity rateManual PriceDirectly maintained manually

When multiple prices exist, SAP uses the Costing Variant to decide which one to pick.

🛠️ How to Set Activity Price Priority

✅ Step 1: Define/Change Costing Variant

Tcode: OKKN
Path: Controlling → Product Cost Controlling → Product Cost Planning → Costing Variant

1. Select your Costing Variant (e.g., PPC1, PC01)
2. Go to tab: Valuation Variant
3. In the Valuation Strategy section → Click on Strategy Sequence for Activity Types

✅ Step 2: Configure Strategy Sequence for Activity Types

Here, define priority order for SAP to fetch prices:

Strategy No.Source1Planned Price (Type 1) – from KP262Planned Price (Type 2) – from KP063Manual Price4Actual Price (only in actual costing)

✔️ You can adjust the sequence based on your cost policy.

✅ Step 3: Maintain Prices Accordingly

TcodePurposeKP26Planned price for activity type and cost centerKP06Cost center planning (activity quantities)KSPIRecalculate prices (plan)KSIICalculate actual prices (actual posting)

✅ Step 4: Execute Costing Run / Settlement

• Costing Run (CK40N) or manual (CK11N)
• Order settlement (KO88)
  ✔️ SAP will use the first available price as per the configured priority

📂 Key Tables

TableDescriptionKSSK, COSP, COEPActivity postings with priceTCK03Costing variantsTCK21Valuation strategiesCSKA, CSKBActivity types and prices

✅ Conclusion

In SAP CO, the activity price used during costing is controlled via the valuation strategy of the costing variant. By setting the right strategy sequence, you ensure SAP selects planned, actual, or manual prices as per your business logic, providing accurate and consistent cost calculations.