Allocation Cycle

[#1]

Hi All,

My customer wants to do cost allocation. How do i decide on which allocation to follow, Assessment or distribution.

They also want to do cost allocation inter and intra company code wise. FYI they also have business area linked.

Please Suggest,

Thanks,

Rashmi

Moderator: Please, avoid asking basic questions

[Former Member]

hi rashmi..

When you creat assessment cycle you will find 4 tabs a) header segments (b) Sender/Receiver (c) Sender Values (d) Receiver tracing factot.

You have to define all the areas carefully.

Yes, you can define Individual cost centre as Receiver or Sender , there is option in sender/receiver tab "FROM" "TO"

Do it carefully, it is very easy to creat cycle.

thanks

kkumar

[Adimallaiah]

Hi Assessment and Distribution with exmaples are mentioned in the below links. Plz refer these may help you.

Assessment

http://help.sap.com/saphelp_47x200/helpdata/en/08/514e3b43b511d182b30000e829fbfe/content.htm

Distribution

http://help.sap.com/saphelp_47x200/helpdata/en/08/514e2e43b511d182b30000e829fbfe/content.htm

Thanks & Regards,

ADI

[Former Member]

Hi ,

Thanks.

I have 2 more Questions

Firstly, While i create the assessment cycle in the sender/Receiver tab there a cost center range must be given. However i dont want to give the range i was to give single values.How do i do this.

Secondly on executing the assessment cycle iam facing this error "cycle does not include any senders". Where as i have mentioned the sender cost center in the sender Receiver tab. Is there something i have missed due to which iam getting this error.

Please let me know how to proceed as am not much familiar with the CO part.

Thanks,

Rashmi

[Adimallaiah]

Hi Rashmi,

It is not mandatory to Maintain Range of Cost Centers in Assessment Cycle. Either you can enter one Cost Center or range of cost centers or You can group the cost centers and enter the cost center group in Sender.

After maintaining the above step check whether transactions are posted to the cost center. If trasactions are not posted, post the transactions and test it. Hope it should work. If still you are getting the error, plz let me know.

Thanks & Regards,

ADI

[Former Member]

hi...

You can allocate cost through Assessment cycle and also distribution. The difference between Assessment and Distribution :

1. Assessment : Expenses are allocated through Secondary Cost Element(Cat 42), hence identity of primary cost element is lost. it is appropriate to follow this cycle for Overhead expenses.

2. Distribution : Allocation is carried out through primary cost element and identy of primary cost element remains. So if identity of primary cost element is required , use distribution.

thanks.

kkumar

[ajaycwa1981]

Hi Rashmi

Inter-Company allocations can be done if both the companies are in same contr area.. Else, it is not possible

Assessment is used when you dont want the origin cost element detail on the receiver cost center and Distribution is used when you want that detail

Assessment uses a secondary cost element to credit the Cost center where as distribution uses Original cost element which increases the no of line items in the system

Regards

Ajay M

[Former Member]

Hi,

We do cost allocation within Controlling Area and I understand all your company codes are assigned to the same Controlling area.

Distribution was created to transfer primary cost from a sender cost center to receiving controlling objects.

Define Distribution - KSV1

Execute Distribution - KSV5

Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, the original cost elements are summarized into assessment cost element

Define Assessment - KSU1

Execute Assessment - KSU5

Now depending on your requirement you can define the Cycle.

Regards

Jaydip