Ask the FI/CO Expert: Improve Your Cost Center Budgeting Speed with Automated Dependency Planning

  • by Tony Rogan, Consultant, SAP America
  • April 15, 2003
Tony Rogan responds to a reader who wants to partially automate CCA planning. The answer, he says, is dependency planning.
Key Concept

 

Thanks for your question. In the circumstances you describe, I think a relatively new CO-CCA functionality called dependency planning can assist your company in developing its cost center plan. You’ll find it especially useful in preparing your budgets for the upcoming fiscal year.

Dependency planning allows plan costs to be derived from, or to be dependent upon, other costs or quantities. It can be either value-based or quantity-based in its design. Value-based dependency planning uses a price-per-unit schema. Quantity-based dependency derives planned amounts from input quantities.

R/3’s module provides numerous functions for planning. Many managers responsible for their cost center budgets enter the plan information for cost centers by using traditional cost center/ cost element planning. Amounts are entered by cost element for a particular cost center. This is a straightforward process and is probably the most popular form of planning.

Tony Rogan

Tony Rogan is a certified FI/CO consultant at SAP with eight years of SAP consulting experience. He began his SAP career with a Big 5 consulting firm and over the years has worked in various industries, including utilities, non-profit, high-tech, consumer goods, and process manufacturing. Tony’s expertise lies in the Financial and Controlling modules, with emphasis on Cost Center Accounting, Profitability Analysis, Internal Orders, Profit Center Accounting, Special Purpose Ledger, Project Systems, and Product Costing. He also has experience working with Enterprise Consolidations, LIS, and Business Information Warehouse.

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