SAP recommends three steps in the planning. In all three steps, the planning can be carried out manually or automatically. You may use assessment, distribution, and indirect activity allocation or inputted costs for planning. You can also have centralized planning (cost element planning for all the cost centers) and decentralized planning (planning for individual cost centers) in your organization.
SAP provides you with a choice of two options to enter your plan data. You may use Form-based entry or Free entry.
In form-based entry, all you need to do is fill in the plan data in the rows corresponding to the characteristic values (cost centers, cost element, etc.) displayed on the screen. But, in free entry, you have the freedom of inputting even the characteristic values.