Classifies the activities in the cost centers within a controlling area. Activity Types is an activity performed to classify the activities produced in cost center. Activity Type classifies the activities to be performed within a company by one or several cost centers.

Activity types are used to determine the quantity-based output of a cost center. System records quantities measured in activity units to plan and allocate the activities. The activity types divide the specific activities which are produced in a cost center.

Setting up Activity Types: -

Activity type setup involves two steps.

1. Creating Activity Type.
2. Assigning rates to activity.

Creating Activity Types: -

Step-1: Go to transaction KL01.

Step-2: It opens Create Activity Type: Initial Screen. Enter Controlling Area and click on tick mark to proceed.

Step-3: Enter the new Activity Type, Valid From and click on Master Data.

Step-4: Enter Name, Description, Activity Unit, CCtr categories, ATyp category and Price indicator.

Step-5: Go to Output tab to enter the output unit.

Step-6: Click on the Save button to save the Activity Type.

Step-7: Once the activity type saved successfully, the below message displayed on status bar.

Assigning Rates to activity: -

Step-1: Go to KP26 to assign rates for an activity type and cost center.

Step-2: Enter Version, From Period, To Period, Fiscal year, Cost Center details.

Step-3: Click on overview screen icon to assign hourly rate.

Step-4: Enter per hour Rate under Fixed price, distribution key as 2 and plan price indicator as 3.

Once the details entered, click on save button assign the rates to activity.