In SAP Controlling (CO), activity prices (rates) are planned for the combination of a cost center and an activity type. The cost center is the organizational unit where costs are incurred, and the activity type represents the output or service provided by that cost center (e.g., machine hours, labor hours). The system calculates the planned activity price by dividing the planned costs of the cost center by the planned activity quantity. This price is then used to valuate internal activity allocations to other cost objects, such as production orders or WBS elements.

A. WBS Element: A WBS element is a cost object in the Project System (PS) module that receives costs from activity allocations; it does not determine the price of the activity.

B. Production Order: A production order is a cost object that is debited with the costs of consumed activities. The price for these activities is planned on the sending cost center.

C. Work Center: A work center is a master data object in Production Planning (PP) that is linked to a cost center. It defines the available capacity and formulas for calculating activity quantities, but the financial price planning occurs on the associated cost center.

1. SAP Help Portal

SAP S/4HANA Cloud: Activity Price Planning. This document explicitly states

"You plan the prices of activity types for each cost center or for each cost center and business process. The system uses these prices to valuate the activity produced by the cost center." This confirms that the cost center is the primary object for planning activity prices.

2. SAP Help Portal

SAP S/4HANA Cloud: Cost Center Planning. The overview of Cost Center Planning details the process steps

including planning primary costs

activity types

and statistical key figures on cost centers

which are all prerequisites for the system to calculate activity prices.

3. Heimo Adelsberger

et al. (2002). Chapter 5: Controlling in SAP R/3. In Enterprise Resource Planning & Supply Chain Management (pp. 105-130). This academic text on SAP ERP systems explains

"The price for an internal activity is determined in cost center planning... The price is calculated by dividing the planned costs of a cost center by the planned operating level (the sum of the planned internal activity allocation)." (Section 5.3.2). This fundamental principle remains unchanged in SAP S/4HANA.