Our journey through activity type postings begins with activity type category 1 (manual entry, manual allocation). I think of category 1 as the vanilla ice cream of posting activity. This is the most straightforward method to use and understand. Activity types defined with this category must be directly posted to a cost center and at the same time have a cost object for the allocation assigned. Look at the definition of activity type CATEG1 below. In this case, the actual allocation category is left blank, which means that it will be the same as the plan activity type category. For CATEG1, that means the actual category will be 1.