SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021




SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021

SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021


In this training I tried to explain the concept of SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021  for the Manpower/Labour activities into Business process interms of both configuration , testing and execution one cycle.


Activity-Based Costing provides a process oriented view of overhead cost, in contrast to the traditional location-oriented view provided by Cost Center Accounting. Activity-Based Costing thus complements and enhances Cost Center Accounting

Activity-Based Costing (ABC) enhances of traditional product costing by assigning the sources  of costs to their required business processes. Cost center resources can allocate to business processes based on their actual expenses through the allocation methods say Distribution for example.


1. Activate Activity-Based Costing in Controlling Area

2. Maintain Business Process Standard Hierarchy for Controlling Area

3. Cost element creation-43 category

4. Activity type-Labour -Master Data

5. Production Cost center -Master data

6. Cost center with Activity type planning

7. Template Allocation-BP Environment Creation

8 .Business Process creation -Master data

9. Assign Template to all Business Process

10. Business Process Group Creation

11. Business Process Planning-Cost Element wise

12. Business Process Planning-Activity type wise

13. Business Process & Activity type rate calculation

14. Template Allocation-001 Environment

15. Material Master creation

16. Bill of Material

17. Work Center

18. Routing

19. Production Version

20. Cost estimation & Release

21. Production Order creation

22. Activity Confirmation

23. Template Allocation -Execution of Business Process

24. FI Expenses to Direct Cost centers

25. Creation of Distribution Cycle : Cost spilt to Business Process

26. Execution of Distribution Cycle : Cost spilt to Business Process

27. Actual Business Process Rate Calculation

28. Revaluation of Production Order

29. Variance Calculation

30. Settlement


SAP CO: Activity Based Costing (CO-OM-ABC) in S/4 HANA 2021 - Complete Process

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What you will learn
  • Explain the concept of SAP CO: Activity Based Costing
  • Configuration of Activity Based Costing. Master data setup
  • Integrated with template allocation for Business Process

Rating: 5

Level: Expert Level

Duration: 6.5 hours

Instructor: Karanam Sreedhar


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