Using Volume Definitions

There may be times when you must calculate volume costs. Once you supply the system with a volume amount, it uses that value as the denominator in an equation that establishes a metric for a given activity or cost object by pointing to the table location of the required data. For example, to determine the cost of production per unit, and the total cost of units is the numerator, supply a volume amount for the denominator. Activity-Based Management then calculates the cost of processing per unit.

Note: Before adding volume definitions, you must establish your activities, cost objects, and pointers.

Establish volume definitions using pointers for:

Activities using the Activity Volume page.
Cost objects using the Cost Object Volume page.

Note: Activity-Based Planning and Simulation (ABPS) uses these pages to calculate the change in volume required to calculate resource spending needs. In ABPS, depending upon the model type, you must define the correct budgeted, capacity, or rate pointer along with the actual pointer.

Pages Used to Define Volumes

Page Name	Definition Name	Navigation	Usage
Activity Volume	ACT_VOL_TBL1	select Activity Based Management, then select Setup, then select Activities, then select Activity Volume	Determine the volume that calculates object rates.
Cost Object Volume	CST_VOL_TBL1	select Activity Based Management, then select Setup, then select Cost Objects, then select Cost Object Volume	Determine the volume that calculates cost object rates.

Activity Volume Page

Use the Activity Volume page (ACT_VOL_TBL1) to determine the volume that calculates object rates.

Navigation

select Activity Based Management, then select Setup, then select Activities, then select Activity Volume

Select an Actuals Pointer ID, Budgeted Pointer ID, Capacity Pointer ID, and Rate Pointer ID to indicate the table location of actuals, budgeted, capacity, and rate information respectively.

Cost Object Volume Page

Use the Cost Object Volume page (CST_VOL_TBL1) to determine the volume that calculates cost object rates.

Navigation

select Activity Based Management, then select Setup, then select Cost Objects, then select Cost Object Volume

Select an Actuals Pointer ID, Budgeted Pointer ID, Capacity Pointer ID, and Rate Pointer ID to indicate the table location of actuals, budgeted, capacity, and rate information respectively.