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.

References:

SAP Controlling Configuration Guide

SAP Help Portal on Activity Types and Cost Elements