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SUMMARY

Overview and Purpose
In SAP Controlling (CO), Activity Price Calculation plays a key role in determining the cost of internal activities like machine hours, labor time, etc. When multiple prices exist for an activity type (e.g., plan price, actual price, manual price), the Costing Variant controls which price takes priority during cost estimation or order settlement.

Key Functional Highlights

Costing Variant Configuration
The costing variant defines how a product or process is costed. It contains parameters for valuation, overhead, and price priority. The system uses this to decide whether to pick planned, actual, or manual prices when calculating costs.

Activity Price Priority Logic
Within the valuation variant of the costing variant, you set the priority sequence for activity prices:

• Planned Price 1 or 2 (from KP26)
• Actual Price (from KSBT)
• Manual Price (entered directly)

The system picks the first available price based on this sequence, ensuring consistent and controlled cost calculation.

Integration with Cost Centers and Orders
During production order creation or product costing runs, SAP fetches the activity prices from the cost center/activity type records. The valuation variant ensures the correct price is chosen automatically.

Business Considerations

• Ensure correct price maintenance in KP26/KP06/KSBT before costing runs.
• Decide whether to prioritize planned or actual costs based on your costing strategy (e.g., budgeting vs. actual analysis).
• Align costing variant settings across plants and controlling areas to maintain consistency.

Technical Highlights for SAP Consultants

SPRO Path
Controlling → Product Cost Controlling → Product Cost Planning → Basic Settings → Maintain Costing Variants → Maintain Valuation Variants

Key Configuration Areas

• Define valuation strategy for internal activities
• Set price priorities (e.g., Planned Price 1 > Actual > Manual)
• Link the valuation variant to the costing variant

Testing Tips

• Run CK11N for product cost estimate to verify the correct activity price is picked
• Use CK13N or cost component split to validate price sources

Key Takeaways for End-Users

• Ensure that valid prices are maintained in the system for the correct period.
• If cost estimation shows zero or incorrect activity costs, check the costing variant and price maintenance.
• Work closely with CO or product costing teams during month-end or planning cycles.