Define Activity

Explanation

Use this activity to define the cost activities used within the system for running activity-based costing by site. This task, to be performed by a system administrator or equivalent person, is mandatory for measuring activity-based costing (ABC).

Prerequisites

This activity has the following prerequisites:

• Sites must be defined.
• System-generated or user-defined activity cost drivers must be defined within the system.

System Effects

As a result of this activity:

• A cost bucket is created. The cost bucket ID will be the same as the activity ID.
• The activity can be connected to different cost centers. 
• Cost activities are used to carry costs from the cost center to the specific cost object.
• An activity generates costs only after having been connected to a cost center and connected to a cost template.

Window

Cost Activity

Related Window Descriptions

Cost Activity
Cost Activity/Activities

Procedure

To perform this activity, follow these steps:

1. Open the Cost Activity/Activities window.
2. In the Site field, query for the site for which you want to create activities.
3. On the Activities tab, create a new record.
4. In the Activity ID field, enter up to five alphanumeric characters for the activity ID.
5. In the Activity Description field, enter the description.
6. In the Activity Driver ID field, select the activity driver to be assigned to the activity from the  List of Values.
7. Repeat steps 3-5 for each activity you want to create.
8. Save the changes.