SAP Conference Overview

SAP Sessions

How Templates Enable SAP Activity Based Costing


Activity Based Costing (ABC) is a method of assigning overhead costs based on activities or cost drivers. Drivers are defined as either individual events such as machine setup or as a duration. Standard methods of cost allocation using overhead costing sheets or standard activity allocations cannot accurately represent the costs associated with the drivers. SAP developed the business process cost object to be used to aggregate costs from multiple sources to represent cost drivers. Templates are created to provide accurate calculations for the assignment of driver costs using both business processes and activity types. This session will demonstrate an ABC costing scenario to show how activity-based costs are planned and posted to help you determine if ABC is the right approach for you.

In this session you will learn:

  • Why templates are an important part of an ABC implementation
  • How cost drivers are represented
  • How overhead is allocated using templates

Register today to see how you can effectively use templates to allocate overhead costs with ABC

Tom King

Tom King recently retired from Milliken and Company, a leading manufacturer of specialty textiles, floor covering, and chemicals based in Spartanburg, South Carolina with global manufacturing facilities, where he was a Senior Business Analyst. He has more than 30 years of experience at Milliken in manufacturing and product costing. Tom was lead CO analyst involved with the SAP implementation worldwide. He has written three SAP books: Practical Guide to SAP CO Templates, SAP S/4HANA Product Cost Planning Configuration and Master Data, and SAP S/4HANA Product Cost Planning Costing with Quantity Structure.

» Phone: +1 (619) 254-5002