Cost Center Planning

TEAM A
Archana
Dinakaran
Ravi
Cost Planning Scenario
Yearly cost center wise cost will be taken from HR planning (HR Cost), CAPEX planning ( capital
expenditure & depreciation), project planning (project expenses). Inventory cost will be taken
into a dummy cost center as it will not be captured at cost center level
Sales value plan be taken from revenue planning as a base for sales related expense planning like
freight, octroi, discount etc.
All the above data will be taken month wise at plant level in local currency, all the other expense
areas are manually planned monthly against the respective cost center & GL for that plant
Last year actual data can be taken as the base for above manual planning
The expenses can be allocated to all or selected cost centers for planning. Properties will be
created against cost element to group cost elements into expense heads.
Electricity: To be allocated to each cost center based on KWH given to each cost center.
Property watt" can be defined for all cost center member and separate value for allocation
need to be maintained for each cost center
Rent: To be allocated to each cost center based on SQF area of each cost center. Property
area" can be defined for all cost center member and separate value for allocation need to
be maintained for each cost center
General administration expenses will be allocated equally among selected cost centers
Non-allocable expenses like conferences, trainings etc will be taken as per manual plan

2
Cost Planning Scenario
The planned cost for plants will collate to achieve the numbers for the each company code as
bottom up planned targets
Currency translation will be done to convert the budgeted data in input currency to final group
reporting currency on final cost arrived after manual planning and allocation
The final cost plan will be used as the base for budget planning, planned data is reduced by a
% value as per group strategy to determine the optimistic budget
The final budget will be taken as the base and will be released against the plan submitted,
any supplementary budget will be released after due approval if it will be within the planned
value
The following details need to be reported
Monthly planned and actual tracking

3
BPC Models & Dimensions:
Model Name: FT_CC_ACTUAL
Dimension: Account (A), Category (C), Cost Center (E), Time (T), Currency (R).
Account Dim Properties: ID, Desc, ParentH1, AccTyp, RateTyp and Scaling.
Category Dim Properties: ID, Desc, Year, Cur_Month.
CC Dim Properties: ID, Desc, ParentH1, Currency.
Time Dim Properties: ID, Desc, ParentH1,Year, Period, Perioddesc, Totaldaysinperiod, Workdaysinperiod, Weeksinperiod,
Month.
Currency Dim Properties: ID, Desc, Cur_typ, Entity, Reporting.
Cost Accoun PY 2014.J 201 Vari 2014.F 2015.F 2014.M 2015.M
Center t ACT an 5.Ja anc eb eb ar ar
n e
ACT PLN ACT PLN ACT PLN