## Setting Up Activities

This chapter provides overviews of activities and discusses how to set up activities.

### Setting Up Activities

This section provides an overview of activity setup and discusses how to:

- Define activity groups.

- Assign activities to groups.

- Set processing options for ABC Workbench.

#### Understanding Activity Setup

If you use the JD Edwards EnterpriseOne Advanced Cost Accounting system for activity-based costing, you must set up activities. An activity is an aggregation of actions that are performed within an organization. The characteristics of an activity are as follows:

- Usually a subset or output of a process.

- Consumes resources.

- Can be broken down by user-defined attributes, such as value-added activities or non-value-added activities.

- Usually falls into two categories: product-related or customer-related.

- Sometimes synonymous with processes.

  Note. To form a hierarchical process, you can associate activities or subprocesses to a group. You assign activities and subprocesses to parent groups. You set up activities and groups in the same manner. You can assign attributes, category codes, and driver codes to either an activity or a group.

#### Prerequisite

Before you complete the tasks in this section, verify that you have activated the activity-based costing option in Cost Management Constants.

#### Form Used to Set Up Activities

Form Name | FormID | Navigation | Usage
Enter/Change Activity | W1640B | Activity Based Costing (G1616), ABC Workbench Click Add on the Work with Activity Based Costing Workbench. | Define activity groups. Assign activities to groups.

#### Defining Activity Groups

Access the Enter/Change Activity form.

To define activity groups:

1. Complete the Activity Code, Description, and Activity Level Code fields on the Enter/Change Activity form.

2. Select the Group option to identify an activity group.

3. Enter a driver code in the Driver Code field to capture cost information at this level.

4. Complete the Activity Attribute 1, Activity Attribute 2, Activity Attribute 3, Activity Attribute 4, and Activity Attribute 5 fields to identify attributes for the activity group.

5. Complete the Category Code 1, Category Code 2, Category Code 3, Category Code 4, and Category Code 5 fields to identify category codes for the activity group on the Category Code tab.

6. Click OK.

#### Assigning Activities to Groups

Access the Enter/Change Activity form.

To assign activities to groups:

1. Complete the Activity, Description, and Activity Level Code fields on the Enter/Change Activity form.

2. Select the Activity option to identify this action as an activity.

3. Complete the Parent Group field to assign this activity to an activity group.

   Based on the parent group number, the system assigns the activity level code.

4. Complete the Driver Code field to identify a driver.

5. Complete the Activity Attribute 1, Activity Attribute 2, Activity Attribute 3, Activity Attribute 4, and Activity Attribute 5 fields to identify activity attributes.

6. Complete the Category Code 1, Category Code 2, Category Code 3, Category Code 4, and Category Code 5 fields to identify category codes on the Category Code tab.

7. Click OK.

#### Setting Processing Options for ABC Workbench (P1640)

Processing options enable you to specify the default processing for programs and reports.

Defaults

1. Start Level | Specify the lowest activity level code that the system displays in the Activity Based Costing Workbench program. If you leave this processing option blank, the system displays activities at level 1 and above.

Process

1. Automatically Find On Entry | Specify whether to automatically load data into the parent child form upon entering the Activity Based Costing Workbench program. Use this feature only if there are not many records to retrieve; otherwise, you may unnecessarily slow the system's performance. If you leave this processing option blank, you must manually find the data for the parent child form. Values are: Blank: Manual Find I: Automatic Find