Allocation Structure

[#1]

Hi SAP Seniors,

          In allocation structure(OKO6), we assign source ,assessment cost element and settlement cost element.But if we are running Assessment cycles ,we are defining all the details there itself also.Then what is the use of allocation structure and is it mandatory to do this settings.

          Please help me in understanding this.

   Thanks & Regards

          sapfico

[Former Member]

Hi,

During settlement, costs incurred under the primary and secondary cost elements by a sender are allocated to one or more receivers. When you settle by cost element, you settle using the appropriate original cost element. An allocation structure comprises one or several settlement assignments. An assignment shows which costs (origin: cost element groups from debit cost elements) are to be settled to which receiver type (for example, cost center, order, and so on).

But in case of assessment cycles its not mandatory to maintain allocation structure.

Regards

Srinivas Salpala

[Former Member]

Hi Srinivas Sir & Christian Sir

         Thanks for reply.

         Is there any relation of Allocation structure with Source Structure defined in OKEU.

         Can you plz explain me with an example

     Thanks & Regards

          sapfico

[Former Member]

Hi,

Both are different. Allocation structure is for  - how to use cost elements at the time of setlement. Whether, settlement happens with same cost element or other any separate cost element needs for that.

Whereas, Source structure is usually have in joint production scenarios, where we use it for the apportionment of costs between main and co-products on the basis of soruce cost elements.

Regards

Srinivas Salpala