Allocation of cost from one business area to another business area

[Former Member]

Hello friends,

Client Requirement: They have 5 business areas. one is for Head office and other 4 are business operations. Their head office expenses are booked under various cost centers in H.O Business Area. Now they want to allocate all H.O expenses to other business areas where business operations are carried on.

currently all allocations are made manually. now they want to incorporate in SAP.

is it possible to allocate the expenses which are booked under one business area to other business area???

pls give your ideas for how to allocate those expenses.....

[Former Member]

create one secondary cost element (42)

and Use this secondary cost element on the creation of cycle and execute the cycle(i.e. assessment cycle)

[Former Member]

Hi,

If you are working with the NewGL activated , you can create an FI actual distribution cycle with transaction FAGLGA31.

- the sender and receiver fields may be customized with transaction GCA6.

- the result is not displayed in CO, but only in FI.

Paolo

[Former Member]

hi,

My client is using SAP 4.7..... I want to allocate the costs which is booked in a particular business area to internal orders of other business area.....

I think it is possible if i creat secondary cost element.... is it so?

rgs,

Vijay

[Former Member]

the business are is not a CO object you can use for allocation. What about replacing business area with profit centre accouting? this way you can manage reposting in Profit Centre accouting.

other possibility:

- create one secondary cost element (42)

- create one cost centre for each operation area. each cost centre assigned to the relevant BA.

- allocate cost of central functions (using a group with all cost centre related to central BA) to new created cost centre in operation. the driver can be a percentage.

Paolo

[Former Member]

They didn't have profit centre. so i cann't go for that option

Each operation area has many cost centres and internal orders... i have to allocate the costs from the cost center to internal orders.... if it is a same business area there is no problem we can create assessment cylce and allocate the cost.... the problem comes only when the allocation needs from one business area's cost center to other business area internal orders

for that the solution might be create Secondary cost element As you said and by using assessment cycle we could allocate the costs...

vijay

[venkatasatyakrishna_achan]

hi

why cant we use cost center assessment or distribution, so that we can transfer the amounts from head office cost centers to the other business centers cost centers

krishna

[Former Member]

hi krish,

its not possible since here the requirement is to transfer the costs

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> from cost centre of a particular business area (each business area has many cost centers)

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> to internal orders of other business area...

vijay

[Former Member]

I think you can configure the internal order as receiver for cost centre assessment cycle.

try transaction KCAU.

Paolo