Activity Type Master Data: In SAP Controlling (CO), the activity type represents a classification of activities performed by a cost center. It is linked to cost elements for accounting purposes.
Cost Element Role:
Cost Allocation: The cost element associated with an activity type is used to allocate costs during activity allocation, acting as a bridge between the CO and FI modules.
Cost Tracking: This linkage ensures that costs incurred by performing activities can be tracked and allocated accurately to the receiving cost objects.
Setting Up Activity Types:
Define Activity Types: In the Controlling module, define activity types and associate them with relevant cost elements.
Perform Activity Allocation: Use the defined activity types for allocating costs in internal orders, cost centers, and other CO objects.
Reference:
SAP Controlling Configuration Guide
SAP Help Portal on Activity Types and Cost Elements