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Activity type link to resource related billing

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Hello Gurus, Need your help and guidance

 

I have requirement from SD group they would like to test Resource related billing document for some new activity type that I need to create under Labor category.

 

From CO perspective, Should I be just creating under labor Cost element group one new cost center that should be link to activity type?

 

I am curious than how would XYZ material from that billing document will be driven to that activity type?

 

Should I be creating any other link which should identify the Material to be driven to that cost center to activity type?

 

Regards,


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