Difference between Fixed value and variable value in Tcode:KP26

[Former Member]

Dear Guru,

What is the difference between Fixed value and variable value in Tcode:KP26 ?

thanks.

Kick

[Former Member · Accepted solution]

Hi

Generally activities are generated at Cost Centers (in PP equivalent is Work Center; but one work center can have only one activity type but one cost center can generate many activities).

To generate all such activities cost centes have to incur costs. All such costs can be categorized into Fixed and Variable costs.

For eg. Cost center which does packing has expenses in terms of machinery depreciation, labour cost etc. Machinery Depreciation is a fixed cost since irrespective of the activity, this is charged to cost center. On the other hand, labour cost can be fixed to a certain extent but will be variable after a point.

In view of the above cost of activity can consist of either Fixed or Variable or both. In KP26, when entering the cost of activity, system provides an option to enter costs separately.

Hope this helps.

Thanks

Satya