Diff between assesment ,distribution,allocation

[#1]

hi gurus,

can any body tell me what is the difference between assessment, distribution, allocation,

thankx in advance

sandeep.ch

[Former Member]

Hello

Allocations enable you to periodically allocate amounts and quantities from sender objects to receiver objects. The two main types of allocations are assessment and distribution. You can allocate both plan and actual data. You perform the allocation using the allocation cycle function. You use allocation rules to determine how amounts and quantities should be allocated from sender object to receiver object. It is possible to assess/distribute amounts and quantities according to the following criteria, for example:

● Sales costs

● Sales for a particular period

Recommend performing assessments and distributions at the cost center level in Overhead Cost Controlling (CO-OM), although it is also possible to perform them in New General Ledger Accounting. You should use the allocation in General Ledger Accounting for assessments and distributions for the characteristics Segment and Profit Center.

Financial Accounting (New) ® General Ledger Accounting (New) ® Periodic Processing ® Allocation.

You can process data both from other SAP application components as well as from external systems with the allocation.

You can choose between the allocation types “distribution” and “assessment”. In this way, you determine how the allocation process is performed.

You use allocation rules to determine how amounts and quantities should be allocated from sender object to receiver object. You can choose between various sender rules and receiver rules.

Processing of the data is effected using the allocation cycle. Within an allocation cycle, you can define allocation segments. You determine allocation rules in an allocation segment.

The header data of the allocation cycle contains information valid for all allocation segments contained in the cycle.

You can use the following functions for the allocation cycle:

You can process allocation cycles iteratively and/or cumulatively.

● You can allocate/distribute quantities and amounts in transaction currency.

You can define selection criteria and rules for selection criteria. You use the dimensions in the allocation to specify how the allocation cycle is processed.

You can lock individual segments in an allocation cycle so that they are not included in processing. See Locking Allocation Segments in an Allocation Cycle.

You can choose whether to execute allocation cycles online or in the background. See Executing Allocation Cycles. You can determine how the system handles errors that occur during processing.

You can reverse an allocation cycle and reverse allocation line items.

You can display allocation results and print detail lists.

Regards

[Former Member]

Hi,

Allocation is a business process wherein the expenses are assigned from one cost object to another. This can done using distribution or assessment functionality in SAP.

The main difference between Assessment cycle and Distribution cycle is - in case of Assessment we use secondary cost element.

An example to highlight the difference is as under:

Common Costs incurred for example for Factory Cafeteria are booked to Cost Center - Z using primary cost element 400100 (Amount $ 100). During period end closing the costs are be allocated to Cost Centers A, B and C in the ratio of 50%, 20% and 30% respectively.

Distribution:

Sender Rule: Posted Amounts

Sender Cost Center - Z

Sender Cost Element - 400100

Receiver Cost Centers are A, B and C

In Receiving Tracing factor - we specify the percentages for each cost center.

When distribution cycle is executed. Cost Center Z will be credited by $ 100 and Cost Center A, B and C will be debited with $50, $20 and $30. All the postings will be made using the primary cost element 400100.

Assessment:

Assessment Cost Element: 600100.

Sender Rule: Posted Amounts

Sender Cost Center - Z

Sender Cost Element - 400100

Receiver Cost Centers are A, B and C

In Receiving Tracing factor - we specify the percentages for each cost center.

When assessment cycle is executed. Cost Center Z will be credited by $ 100 and Cost Center A, B and C will be debited with $50, $20 and $30.

In Assessment all the postings will be made using Assessment Cost Element - which is secondary cost element.

The advantage of Assessment is the original postings made to the primary cost element are retained.

In this example, if we execute a report for Cost Center Z for Cost Element 400100, we can still display the values. If we execute the report for cost element 400100 and 600100 together, the value will be zero.

Thanks

Murali.

[Former Member]

hi krishna,

it is very helpful answer, i hve given u the points

thnx

sandeep.ch