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Cost accounting !

Former Member
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Hi all!

Can you tell me why do we assign the rule distribute with G/L Account.

When i don't assign, i stiil get cost and revenue for Profit center.

Why do that? Can you help me.

Thank you.

Accepted Solutions (0)

Answers (3)

Answers (3)

wilma_wang
Active Participant
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Hello Tien ,

I am providing some relavant SAP notes for your reference:

559461,857795and 843508.

Regards,

Wilma Wang

SAP Business One Forums Team

Former Member
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I want yoiu explain for me when i don't assign Rule distribution for G/L account. I still get cost and revenue for G/L account by Report Profit center.

I don't understand.

former_member186095
Active Contributor
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I thought you have understood directly after read all previous answers.

Nevertheless I could explain the reason.

when you create profit center it will be 100 percent distribution rule value. So, distribution rule is linked to profit center. If it is so, your profit center = distribution rule

Vice versa, you could create one distribution rule for more than one profict center.

Rgds,

former_member408229
Active Participant
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Hi,

following is from online help -

In addition to their regular bookkeeping, many businesses perform cost analyses that measure the profitability of each of their business activities or departments.

The Cost Accounting functionality in SAP Business One enables you to define sets of profit centers and distribution rules that are updated automatically on a regular basis. Generating the respective reports provides you with important cost related information.

One scenario for using Distribution Rules is :

A company consists of four departments, each of which is a profit center. The electricity bill covers the consumption of the entire company for a defined period. Since the company cannot calculate the exact amount of electricity consumed by each department, the global amount is distributed among the departments according to each department's office size. The distribution rule used in this case is Indirect Debit, as it is impossible to relate a specific amount of the electricity bill directly to a specific department.

regards,

maggie an

former_member186095
Active Contributor
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Distribution Rules - Setup

Use

A distribution rule is used to allocate direct and indirect costs and revenues to one or more profit centers. Consequently, each distribution rule contains information regarding the portion of the costs or revenues to be allocated to each individual profit center.

To distribute the indirect costs incurred by rent, for example, you could specify what portion of the total rented space a specific profit center uses. Another way of defining such a distribution key would involve expressing the number of employees belonging to a profit center as a proportion of the total headcount in the company.

You can use a distribution rule for several different cost elements. If, for example, one store uses 150 square yards of the total rented floor space of 200 square yards, but the other uses only 50 square yards, then you will want to distribute the costs incurred by rent and professional cleaning services proportionately among the two stores on the basis of this information. To achieve this, you will assign the distribution rules to the appropriate expense accounts and revenue accounts.

To access this function choose: Financials --> Cost Accounting --> Distribution Rules.

Rgds,