Use Templates to View Costs in Different CO Applications

  • by Julien Delvat, CO-ABC Developer, SAP Labs France
  • July 15, 2003
The Activity-Based Costing (ABC) module was first introduced in R/3 with Release 4.0 to allow users to access data in several other modules and to transfer costs or quantities from one to the other. This is accomplished with templates. Many users think that templates can only be used in the ABC module. However, from Release 4.0 to R/3 Enterprise, their use has been extended to many different applications, such as Profitability Analysis, Cost Center Planning (from 4.5 on), Easy Cost Planning, and Profit Center Planning (from 4.6C on). The author demonstrates how templates work with two examples, one for calculating costs on a product and one for forecasting production costs for an activity.

The Activity-Based Costing (ABC) module was first introduced in R/3 with Release 4.0 to allow users to access data in several other modules and to transfer costs or quantities from one module to the other. This is accomplished with templates. Many users think that templates can only be used in the ABC module. However, from Release 4.0 to R/3 Enterprise, their use has been extended to many different applications, including Profitability Analysis, Cost Center Planning (from 4.5 on), Easy Cost Planning, and Profit Center Planning (from 4.6C on).

For example, in the CO-PA module, you can track the number of inquiries or complaints made by a customer and attach costs to those activities. Resources such as labor hours are mapped to activities (handling customer inquiries). Then the activities are linked to profitability segments, in this case inquiry costs per customer group. In the allocation process, depicted in Figure 1, the template is the link between the object from which the costs and quantities are taken (sender) and the object that receives the calculated costs and quantities (receiver).

I’ll demonstrate how templates can provide you with a view of your costs in different Controlling (CO) applications. (See, "How Templates Work," below.) I’ll also give you an update on the latest developments for R/3 Enterprise in this area. (See, "The New (Inter)face of Template Maintenance," below.)

Julien Delvat

Julien Delvat graduated from the Ceram Sophia Antipolis (French Management School) and had experience in the cost management team of a service company before joining SAP. He has been working for the past year as a developer on the re-building of the template tool for R/3 Enterprise and now takes part in new developments on subjects such as the Value Network Analyzer.

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