allocation : assess and distribute

[Former Member]

Hello Friends,

My humble understanding is such:

Allocation - means allot a fraction of something to someone.

Allocation can be achieved by assessment or distribution.

I am puzzled what is meant by assessment. What is there to assess? Why assess?

Can I say that there must be a key used for distribution? can it be % (totalled to 100%) or ratio (totalled to 1) ?

As you can see, I am total greenhorn in this area.

Please help me, if you can. I promise to award points for the best clearest answers.

Regards

Markus Z.

[Former Member]

Hi Markus,

There is one fundamental difference between the Distribution and Assessment type of allocation.

In Distribution:

Amounts of the sender objects are distributed to the receiver objects. The debit/ credit postings for the distribution occur under the original account/cost element. As it is quoted in SAP Help - " The information of the original account/original cost element remains intact. "

Where as in Assessment:

It works similar to distribution but the debit and credit postings do not occur under the original account or the original cost element but under an assessment account or an assessment cost element. The information of the original account/original cost element are lost.

Hope you got some information about this!

Suggest you have a look at

http://help.sap.com/saphelp_47x200/helpdata/en/5b/d2241e43c611d182b30000e829fbfe/frameset.htm

Thanks,

Janani

[Former Member]

Thanks Gurus,

Points awarded.

Yes, I am clearer now, thanks.

Hope you can advise why the term cycle is used for assessment or distribution cycles. why is it a cycle?

regards

Markus Z.

[Former Member]

cycle is the way to track how cost flows, enterprise usually allocate cost to 1 cost center and at the month end allocate the cost to responsible cost centers, this is the way efficient way of allocating cost.

[Former Member]

Hi Markus,

please check this thread:

this may give you a better idea of the assessment and distribution.