Category 2 activity types are for indirect determination and indirect allocation. If category 1 activity types are vanilla ice cream, category 2 activities are more like hot fudge sundaes. There is a lot of power built in to how postings are made with these activity types.
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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 common and straightforward method to use and understand. Activity types defined with this category must post directly to a cost center and at the same time have a receiver 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.
Tip 14 from 100 Things You Should Know About Controlling with SAP (2nd Edition) by John Jordan:
You can use internal order budgeting to control actual expenditures by activating availability control.
An internal order budget represents funds approved by management. A budget is maintained at either an overall or annual level. You can activate availability control, which can issue warning or error messages based on defined tolerances. Let's look at how to create an internal order budget and how to activate availability control.
You can maintain a budget profile with Transaction OKOB or via the following IMG menu path: Controlling • Internal Orders • Budgeting and Availability Control.
Double-click a budget profile to display the the internal order budget profile. Activation type 1 indicates automatic activation of availablity control during budget allocaiton. If the Overall checkbox is selected, availability control checks against the overall budget. If it isn't selected, availaiblity control checks against the annual budget. Availability control works with controlling area currency, unless you select the Object Currency checkbox. You can assign the budget profile to an order type with Transaction KOAB or via the first menu path.
You can maintain availability control tolerances via the following IMG menu path: Controlling • Internal Orders • Budgeting and Availability Control • Define Tolerance Limits for Availibility Control
Left-click then right-click in an action field and selct posible entries to display the avabilty control and tolerance limits screen.
The action field defines the messages and emails the system will send at specific degress of budget overrun. In this example, when the budget is nearly consumed at 95%, a warning is issued with an automatic email to the persons responsible. Specify a budget manager with Transaction OK14, or the system will issue an error message. With a budget overrun at 105%, an error message is issued.
You can enter an order budget with Transaction KO22 or via the following menu path: Accounting • Controlling • Internal Orders • Budgeting • Original Budget.
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This is the first of a series of 7 blogs on SAP activity types.
My company began its journey with SAP in 2007. I was a charter member of the FICO team because of my work with product costing in our legacy world. I quickly discovered the way SAP handles product costing and Controlling is different. The concepts were familiar, but the structures and processes were not. One of the first items I encountered was the activity type. Ah, a familiar concept I thought!
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