CO - Posting and Allocations
`
`The following Help Topics are available:
`
`See Also
`
`For Help on Help, press F1
`Version
`
`SAP-00006223
`
`

`

`Version
`Prepared for R/3 Release 2.2.
`August 1994
`
`SAP-00006224
`
`

`

`Copyrights
`
`@1994 SAP AG. All rights reserved.
`Neither this documentation nor any part of it may be copied or reproduced in any form or by any
`means or translated into another language, without the prior consent of SAP AG.
`SAP AG makes no warranties or representations with respect to the content hereof and specifically
`disclaims any implied warranties of merchantability or fitness for any particular purpose. SAP AG
`assumes no responsibility for any errors that may appear in this document. The information
`contained in this document is subject to change without notice. SAP AG reserves the right to
`make any such changes without obligation to notify any person of such revision or changes. SAP
`AG makes no commitment to keep the information contained herein up to date.
`
`SAP-00006225
`
`

`

`Introduction
`
`Overview
`
`This section provides general information on
`¯ posting and allocating actual costs
`¯ the objectives of posting and allocating actual costs
`¯ the requirements when posting and allocating actual costs, whether event-based or periodically.
`Posting actual costs involves transferring the primary costs recorded in financial accounting,
`materials management, and asset management to the management accounting (CO) module.
`You specify a cost accounting object (for example a cost center or internal order) as the target
`account assignment when working in the FI, MM, and AM Systems, and the system transfers the
`data to the CO System.
`During internal cost allocation, the primary costs entered in the feeder systems are transferred,
`along with details of where they originated. Here, we distinguish between allocations which are
`event-based and those which are periodic.
`Event-based allocations
`The internal activities are valuated to determine the costs for each business event. These costs
`are then posted to the sender and receiver objects (debit and credit postings). An internal transfer
`(for example, where costs are transferred from one object to another tocorrect a previous error) is
`another type of event-based allocation. This enables you to produce up-to date statements showing
`the costs incurred on the cost centers at any point in time.
`Periodic allocations
`These are usually carried out after all the primary postings for the relevant period have been made.
`The costs incurred are then distributed according to keys defined by the user. These can take the
`form of percentage rates or fixed amounts. This means that the actual costs incurred for each
`period can only be identified after the period concerned is closed. The CO System enables you to
`perform the following types of periodic allocations:
`¯ periodic transfer
`¯ distribution
`¯ assessment
`¯
`calculation of imputed costs
`This section contains the following topics:
`
`SAP-00006226
`
`

`

`Objectives of Posting and Allocating Actual Costs
`The main aim of these procedures is to enable you to monitor and trace the costs incurred by your
`company as they arise. This allows you to identify variances quickly and to take appropriate action
`to combat them. The posting and allocation procedures must be supported by a user friendly
`reporting system, allowing you to:
`¯ break down actual costs for a particular period
`¯ produce comparisons of
`- actual costs for two different periods
`- planned and actual costs within a single period.
`
`SAP-00006227
`
`

`

`KRequirements when Posting and Allocating Actual Costs
`
`If your system of overhead cost control is to be effective, primary costs must be transferred from
`the feeder systems as quickly as possible after they have been incurred.
`You also need to be able to allocate these costs according to different methods.
`¯ Direct methods
`These are based on activities entered and confirmed, and include the event-based allocations
`already mentioned:
`
`-
`
`internal cost allocation
`
`- event-based transfer of primary costs and revenues
`Indirect methods
`These are based on keys which are either defined by the user or generated dynamically by the
`system (such as the cost elements posted) and include the periodic allocation methods already
`referred to:
`- periodic transfer of primary costs
`- distribution of primary costs
`- assessment of primary and secondary costs
`These procedures all distribute costs to the receivers according to criteria which you specify.
`The CO System enables you to use all of these methods.
`
`SAP-00006228
`
`

`

`Note to the Reader
`The following questions are answered in this guide:
`¯ How are primary costs posted in the feeder systems and transferred to the CO System?
`You will find detailed information in ~f!ma~,~C_osts.
`¯ How are the actual primary costs for each activity passed on in the CO System?
`You will find detailed information in .Event-based A!!o£ations, which provides information on
`direct internal cost allocation (using activities), and on the event-based transfer of primary costs
`and revenues.
`How can primary and secondary actual costs be allocated during period closing in cost
`accounting?
`You will find detailed information in .P..erj.odj.c A![ocatj.ons, which provides information on the
`periodic transfer of primary costs, distribution, assessment, and the calculation of imputed costs.
`It also provides information on how you must set up the system to be able to perform these
`allocations.
`
`SAP-00006229
`
`

`

`Event-based Allocations
`
`This section describes the different methods of carrying out event-based allocations. These are
`entered directly on the screen, meaning that the actual costs are charged to the sender and
`receiver objects immediately. We distinguish between
`¯ postings of primary costs from
`-
`financial accounting (FI)
`
`- asset management (AM)
`- materials management (MM)
`¯
`internal cost allocations within the CO System.
`This section deals with the following questions:
`¯ How are primary costs posted?
`¯ How does the CO System allocate costs?
`¯ What methods are available in CO for the mass entry of data?
`¯ When are the different allocation methods used?
`This section contains the following topics:
`
`SAP-00006230
`
`

`

`Posting Primary Costs
`
`You post actual costs by transferring primary costs from the external accounting systems (financial
`accounting, asset management, and materials management) and collecting them in cost centers.
`When you post costs in any of these systems, you specify an account assignment object in
`management accounting (for example, a cost center or internal order). This allows you to display
`these costs on this object immediately.
`Direct costs are collected in cost centers which settle their costs using direct internal cost
`allocation.
`Overhead is entered on cost centers which allocate their costs using periodic allocation (see
` ot_.j oons).
`One of the main features of these allocation procedures is the ability to allocate costs according to
`a key defined by the user. The costs are usually collected in the cost centers and transferred at
`the end of the period.
`Example:
`Telephone costs are not entered directly for each individual cost center, but are posted to a
`collector cost center. At the end of each period, these costs are reallocated according to
`user-defined keys (such as the number of telephone units in each cost center). You can specify
`whether the original cost element (primary cost element) is to be retained, or whether the costs are
`to be grouped together to form one or more assessment cost elements (secondary cost elements).
`The system does not split the costs into direct costs and overhead.
`The way you process the
`costs determines whether they belong to one category or the other.
`Two documents are created when you post primary costs:
`an original document in financial accounting
`a duplicate in the CO System, which displays the data from a management accounting
`viewpoint (line items).
`These line items are then summarized according to combinations of cost element/controlling
`object (either cost center or internal order) and stored as totals records.
`The transfer of this primary data is controlled by a central interface program.
`detailed information in CO - Central System Administration.
`
`You will find more
`
`SAP-00006231
`
`

`

`Event-based Allocations in Controlling
`
`In the CO System, all event-based allocations are structured according to the same principle. SAP
`has developed many special functions to simplify the entry of large volumes of data:
`¯ Online structuring of the entry screens
`You can structure the entry screens to meet your specific requirements, and store these screens
`as defaults in the system.
`¯ Copying
`You can use the copy functions to duplicate document lines as required, minimizing the number
`of entries you have to make.
`¯ Defining reference documents for standard transactions
`You can create a reference document for standard business events. You can define the entries
`which are to appear in the document (for example, cost element, sender cost-object, and
`receiver cost-object), so that you then only have to enter the amount. Using reference
`documents saves time and reduces possibility of errors.
`¯ Number assignment
`You can assign external numbers to event-based internal allocations. This means that your CO
`document numbers are consistent with the conventions used in the feeder systems (for
`example, when entering operations in the production department).
`You can also generate the document numbers automatically (internal number assignment).
`¯ Posting in foreign currency
`You can allocate costs from one cost object to another (cost centers or internal orders) in any
`currency. The costs are converted automatically at an average rate which you enter in the
`appropriate currency tables (see CO - Central System Administration).
`¯ Displaying the CO documents
`You can display CO documents at any time. You can select the display format in the same way
`as you selected the document entry.
`¯ Reversing event-based allocations
`You can reverse event-based allocations at any time. You can select the reversal function in
`the same way as the document entry and display format.
`¯ Resetting
`This function allows you to define the content of one or more columns. The system then enters
`this value in each line of the column or columns concerned, meaning that you do not have to
`make the same entry repeatedly.
`"*" entry
`By entering an asterisk ("*"), you can copy the last entry made on that screen. You can use
`this function with all entry fields.
`¯ Suppressing units of measure
`When entering quantities, you can specify whether you want the unit of measure to be displayed
`as well. The system automatically adopts the relevant units from the total transaction data.
`The following internal allocations are available in the CO System:
`¯ event-based transfers
`
`¯
`
`SAP-00006232
`
`

`

`¯ direct internal cost allocation
`
`Event-based Transfers
`
`You can transfer primary costs using event-based transfers, whereby the original cost element is
`always retained. This function is designed mainly to correct posting errors.
`Example:
`You have mistakenly posted $10,000 for the cost element "External services" to cost center 4210.
`The costs should have been posted to cost center 4220.
`You can transfer the full amount to cost center 4220 (see figure below) using an event-based
`transfer and the cost element stays the same. This transfer affects only the CO System, since the
`costs are debited (to cost center 4220) and credited (to cost center 4210) using the same cost
`element.
`
`421o i 1!220.
`
`4210
`
`Pe rson nel co sts
`Raw materials and
`auxiliary supplies
`miscellaneous costs
`telephone
`postage
`
`External services $10,000
`
`External
`services
`S 10,000
`
`I
`
`~
`
`Sender: 4210
`Cost element:
`external services
`Amount: 10,000
`
`CO line items
`
`!
`
`Totals
`
`Totals
`
`Note
`You should always correct posting errors in system where they occurred so that your external and
`internal accounting systems are always consistent. Posting errors involving a cost center or
`internal order can only be corrected using an event-based transfer in the controlling module (CO).
`When transferring collective postings from one cost center to another at the end of a period, it is
`advisable to use a periodic transfer (see .Per[.od[.c aJJ.ocatj.ons).
`
`Direct Internal Cost Allocation
`
`The process of direct internal cost allocation involves measuring, entering, and allocating the
`internal services performed. To do this, you must create the relevant allocation bases which can
`be measured and used as cost drivers when allocating the costs.
`These bases are called activity types in the CCA system. Costs are allocated when operations
`are confirmed or activities recorded. To obtain the costs of the activity, the system multiplies the
`activity quantity produced by the activity price. You can either set the activity price manually when
`you plan the activity or let the system compute it automatically using iterative activity price
`computation.
`
`SAP-00006233
`
`

`

`Note
`The system only takes manual activity prices from plan version 000 into account for internal cost
`allocations.
`Example:
`The service cost center "Fitters" (4110) performs 1 hour of the activity "Repairs" for the production
`cost center HFI (4210). The price for the activity is $35/hour. This price is multiplied by the
`activity quantity produced as follows:
`
`lhr*$35=$35
`The cost center "fitters" is credited for this amount and the production cost center "HFI" debited for
`this amount.
`
`Sender
`cost center
`
`Personnel costs
`Raw materiels
`+aux. supplies
`
`+
`
`+
`
`AIIoc activity A
`Alice. activity B
`
`._] Receiver¢ost center
`clearing account
`" eostrate
`allocated qty/amount
`
`i Order
`
`,’ olearinga¢oount
`cost rate
`" 811ocatedqty/amount
`
`[I S ? erCCtrl]
`If Reoei ers
`
`COline items
`
`Totals record
`
`Totalslrecord
`
`This method of allocation is most often used with the following cost accounting procedures:
`¯
`static standard costing
`¯
`flexible standard costing
`¯ activity-based costing
`¯ direct costing
`Note
`Activity-based costing and direct costing will be available in a future release.
`
`Input of non-allocable activities
`
`Non-allocable activities are those activities which cannot be charged to other cost objects using
`internal cost allocation. These activities are defined as a special type of activity (type 4) to facilitate
`actual cost control on the cost centers on which they occur. The system takes the planned activity
`and the non-allocable activity on the cost center into account to compute an operating rate which
`provides values to compute target costs and variances for the cost center.
`
`SAP-00006234
`
`

`

`To enter non-allocable activities, select the menu sequence:
`
`Actual postings --> Non-allocable activities --> Enter
`You do not enter sender-receiver relationships here.
`Example:
`In a commercial business variable costs are incurred on a sales cost center for each product unit
`sold. These costs cannot be credited using internal cost allocation. The costs remain on the cost
`center until they are credited to an order using the order management (CO-OPA) component or to a
`business segment using the profitability analysis (CO-PA) component.
`
`Entering Statistical Ratios
`
`You can enter statistical ratios
`¯
`for use in reporting
`¯ to provide tracing factors (allocation bases) for use in periodic allocations
`You enter these statistical ratios during event-based allocation/entry in the CO System.
`Example:
`Canteen costs are to be allocated each month based on the number of employees working in each
`individual cost center.
`The number of employees in each cost center is entered as a fixed value statistical ratio and is
`used as an allocation base for the allocation of the canteen costs.
`There are two different types of statistical ratio:
`¯ Fixed value
`These are carried forward from the posting period to all the following posting periods of the fiscal
`year.
`¯ Totals value
`These are posted only in the relevant posting period.
`
`SAP-00006235
`
`

`

`Period-end Closing
`
`This section describes periodic allocations and the periodic transfers in the SAP cost accounting
`system. These two processes form part of period-end closing. Periodic allocations include:
`¯ distribution
`¯ assessment
`¯
`calculation of imputed costs
`With distribution, and assessment, the costs incurred are allocated according to keys defined by the
`user.
`Imputed costs are calculated using percentage surcharges. They are then passed on to the
`relevant cost centers or internal orders.
`Periodic transfers are used solely to correct postings made in CO. This allocation method does not
`use user-defined allocation keys.
`The following section provides detailed information on the following questions:
`¯ What are the differences between periodic transfers, distribution and assessment and how can
`these different allocation methods be used?
`¯ How can allocations be defined in the system?
`¯ How can allocations be performed?
`¯ How can the results of allocation be analyzed?
`¯ How are different currencies dealt with?
`¯ What special functions are available?
`This section contains the following topics:
`P.e.r.i.o.dJ ~.a B.o..cati.on.s
`D.ef.ining.P.e.r.i.o.di.c..A[I.e.~ati.ons.
`P.e.rf.orm[ng.P.er.i.o.di.c..A[I.o..~ati.ons
`.Curr.en.~ie.s..in.P.eriod[c.Allo.c.atiQn
`
`SAP-00006236
`
`

`

`KPeriodic allocations
`Within periodic transfers, distribution, and assessments, the costs are collected on a cost center
`during the accounting period, and are allocated according to keys defined by the user. These
`procedures are also known as indirect allocation methods since it is not the exchange of
`activities which is used as the basis for cost allocation, but user-defined keys such as percentage
`rates, flat amounts, statistical ratios, or posted amounts.
`The advantage of such methods is that they are easy to use: you usually only have to define the
`keys and the sender/receiver relationships once.
`These methods of allocation are often used on cost centers where direct cost allocation is not
`possible:
`¯ because the operations performed are so varied that you cannot clearly define individual activity
`types
`¯ where it is too complicated to enter all the activities.
`Such procedures might be used to allocate the costs of the works canteen based on the number of
`employees in each cost center. Telephone costs are also seldom allocated directly to the
`individual cost centers, but are collected on a clearing cost center for each period, and distributed
`at the end of the period on the basis of the number of telephone units or telephone installations in
`each cost center.
`
`Periodic Transfers
`
`Periodic transfers enable you to correct postings made to your cost centers. Postings relevant to
`cost accounting such as telephone costs, postal charges, insurance, and so on are entered in
`financial accounting and posted to a clearing cost center. This cost center is only used to collect
`costs and helps minimize the number of different account assignments you have to make when
`entering data in financial accounting.
`At the end of the period, the costs are transferred according to predefined keys (fixed amounts or
`tracing factors) to the appropriate receivers, and the following information is stored:
`¯ the original cost element (the primary cost element)
`¯ origin indicator from financial accounting (trading partner, business area of partner)
`All the posting information is passed from financial accounting to the receiver cost centers by
`means of the cost accounting document. The sender cost center is not updated in the CO
`document since in this case the main aim is to transfer information from financial accounting.
`Fewer line items and totals records are written during periodic transfers compared to
`distribution.
`only one line item is created for each sender-receiver link, in contrast to one line item for
`each sender and receiver created during distribution
`only one totals record is created for each cost element, in contrast to one totals record for
`each sender and receiver created during distribution
`
`SAP-00006237
`
`

`

`08/g2L_~,~~Teleph°ne
`
`Mail room
`
`Telephone 06/1992
`
`rule
`e.g. meter readingsJ
`
`I
`IAIIocation
`I
`
`I
`Production 2
`
`,~Primary ~’~
`ost element~
`
`Telephone
`06/1992
`
`I
`Administration
`
`Telephone
`06/1992
`
`aid to posting
`w/o information on senders & receivers
`
`Distribution
`
`Distribution is a method of allocating primary costs among cost centers. The following information is
`passed on to the receivers:
`¯ the original cost element (the primary cost element) is retained
`¯
`sender and receiver information (which is the sender cost center, which cost center received the
`costs) is documented with line items in the CO document.
`The origin indicator from financial accounting is no longer updated in the cost accounting document
`since the primary aim here is to transfer information within cost accounting.
`
`SAP-00006238
`
`

`

`I Heatingoil I
`
`Energy
`
`Energy 09/1992
`
`I
`
`Allocation base ]
`such as square
`feet of heated
`floorspace
`
`Production1
`
`Heatinq oil
`fromenerqy
`09/1992
`
`Primary
`cost elem.
`
`Production2
`
`Heatinqoil
`from energy
`09/1992
`
`cost center settlement
`
`with info on senders and receivers ]
`
`Assessment
`
`Assessment is a method of settling primary and secondary costs in cost center accounting. The
`following information is passed on to the receivers:
`the original cost elements are grouped together into assessment cost elements (secondary cost
`elements). The original cost elements are lost.
`sender and receiver information (which is the sender cost center, which cost center received the
`costs) is displayed in the CO document.
`Note
`Within periodic transfers, distribution, and assessment, the system writes line items for each sender
`and receiver. You cannot restrict this process. The line items can be reversed if you repeat the
`periodic allocation within a particular period. The posting date for the allocation of actual costs is
`always the last day of the calendar month. The posting date for planned allocations is the first day
`of the calendar month.
`The following table illustrates the main differences between the three allocation methods:
`
`Allocation Methods
`Method
`Costs allocated
`
`Periodic
`
`primary costs
`
`Allocation in...
`
`Line item info
`
`original cost
`for
`
`origin indicator from
`
`Used for...
`
`posting aid
`
`SAP-00006239
`
`

`

`transfers
`
`Distribution
`
`primary costs
`
`Assessment
`
`primary and
`secondary costs
`
`element
`and
`
`costs
`
`original cost
`element
`costs
`
`assessment cost
`element (=second-
`ary cost element)
`costs
`
`financial accounting
`
`collection
`
`sender cost center
`
`sender cost center
`
`allocation of
`primary
`
`settlement of
`primary
`
`settlement of
`primary and
`secondary
`
`SAP-00006240
`
`

`

`Defining Periodic Allocations
`
`You must define the following in the system before you can perform periodic allocations:
`¯ Who wants to settle/allocate the costs?
`¯ Where are the costs to be settled/allocated?
`The relationship between the sender and the receiver must always be defined for these
`allocation methods.
`Example:
`You want to distribute the costs from the cost center "Canteen" to all the cost centers in the
`company.
`Here, the sender is the cost center "Canteen" and the receivers are all the other cost centers in
`the company (including "Canteen"). You can specify more than one cost center as the sender
`Note
`You can also define orders and work breakdown structure (WBS) elements as senders and
`receivers.
`Which costs are to be charged?
`For each sender, you must specify which costs are to be charged.
`¯ How are the costs to be charged?
`Here you must specify the keys according to which the costs will be charged. The keys for
`these three allocation methods are referred to as tracing factors in the CO-CCA component.
`The following can be used as tracing factors:
`-
`fixed percentage rates
`
`-
`
`-
`
`fixed portions
`
`fixed amounts
`
`- variable values, such as:
`actual costs
`planned costs
`actual consumption
`planned consumption
`actual statistical ratios
`planned statistical ratios
`actual activity
`planned activity
`If you use variable values (amounts posted, for example actual or planned costs) as tracing
`factors, we call this flexible determination of tracing factors. The tracing factor is
`determined by the system based on the posted amounts.
`Example:
`The costs on the cost center "Canteen" are to be allocated to all the cost centers based on the
`number of employees in each cost center. You enter the number of employees in each cost center
`
`SAP-00006241
`
`

`

`as the statistical ratio for each cost center.
`You can also allocate the quantities used (using the same criteria as the costs).
`Caution
`Usage quantities cannot be charged using assessment.
`
`Defining Sender and Receiver Rules
`
`The sender and receiver rules for these allocation methods are displayed in the diagram below.
`
`Group/clearing
`costcenter
`
`* Rent
`* Telephone
`* Postage
`
`Allocation rules
`for receiver
`allocation
`accord ing to:
`* fixed values
`- percentages
`- amounts
`- portions
`
`for sender
`allocation
`of:
`* planned values
`* actualvalues
`* with/without
`quantities
`* user defined
`fixed values
`* with remainders
`as percentages
`
`* reference units
`determined
`online
`- costelements
`activities
`- stat. ratios
`
`I
`
`Primarycost element retained
`Aid for posting orcostcenter settlement
`Can be repeated as required
`Line ite ms for senders and receivers
`
`You can use the following combinations:
`Allocation based on fixed values (for the receiver).
`
`IReceiver I
`ICost center 1
`ICostcenter2
`
`* Rent
`
`* Rent
`* Telephone
`
`Costcenter3
`* Rent
`* Telephone
`* Postage
`
`With info. on ]
`rigin of sender
`f distribution
`
`SAP-00006242
`
`

`

`ISenderI
`
`A:
`
`200,000US$
`
`~ B:
`
`IReceivers I
`
`50
`
`50 C:
`
`50,000 U S$
`
`50,000 U S$
`
`70,000US$
`
`A 30,000US$ ~ D:
`
`Fixed values on the sender and receivers are not allowed.
`Allocation based on fixed percentage rates (for the receiver)
`
`Isonderl I Roceivorl
`
`20,000 US$
`
`A: ~ B:
`loo,ooouss c:
`A 20,000 US$ ~ D:
`40,000 US$
`
`20%
`20%
`40°/o
`
`The sum of the percentages must not be greater than 100%. If it less than 100%, the remainder
`stays on the sender.
`Allocation based on fixed portions (for the receiver)
`
`SAP-00006243
`
`

`

`Isenderl I Receiverl
`
`100,000 . 50P B: 50pot[ions=S25,000
`200
`~50P C: 50portions=S25,000
`
`A:
`
`$100,000
`
`~D: 100 portions= $50,000
`200
`~"~ 200 portions
`
`The senders are usually credited in full when you use this procedure (exception: percentage
`remains on sender).
`Sender cost center A has $100,000 to allocate.
`¯ 50 portions each are allocated to the receiver cost centers B
`and C
`¯ 100 portions to receiver cost center D.
`Thus, a total of 200 portions are to be charged as follows:
`Cost center B:
`$100,000/200" 50 = $25,000
`Cost center C:
`$100,000/200 * 50 = $25,000
`Cost center D:
`$100,000/200 * 100 = $50,000
`Note
`Unless you specify that a proportion of the costs is to remain on the sender cost centers, they are
`credited in full using this procedure.
`
`The following combinations are possible:
`Combinations of Sender/Receiver Rules
`Receiver
`Amounts
`posted "1)
`
`Fixed
`amounts
`
`Fixed
`percentages
`
`Fixed
`portions
`
`X X
`
`x
`
`x
`x
`
`x
`x
`
`Sender
`
`Amounts Posted
`Fixed Values
`
`"1) The amounts posted might be:
`actual costs
`planned costs
`actual consumption
`planned consumption
`actual statistical ratios
`planned statistical ratios
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`actual activity
`planned activity
`The system checks the rules entered and rejects any which are inconsistent.
`
`Defining Organizational Units
`
`The rules for the three allocation methods are summarized as a hierarchy in the following
`organizational units:
`¯
`segments
`¯
`cycles
`
`Segments
`
`Sender cost centers, where the values to be allocated are calculated using the same rules, and
`the corresponding receiver cost centers, where the tracing factors are determined using the same
`rules, are combined into a segment.
`Example 1:
`At period-end, the cost center "Administrative buildings" charges the actual costs incurred to all the
`firm’s administration cost centers based on the square meter floor area used by each cost center.
`This tracing factor is entered as a statistical ratio on the receiver cost centers. The sender and
`receiver cost centers are combined with the distribution rule in one segment.
`Example 2:
`At period-end, the energy cost center "Gas" allocates all the costs incurred to the other cost centers
`in the firm.
`The gas costs are allocated to two segments of receivers:
`¯ to the production cost centers, based on the gas meter readings (statistical ratio) entered on
`the production cost centers
`¯ to the administration cost centers, based on the heated area they use (statistical ratio).
`Two segments must be defined because the tracing factors for the two receiver groups are
`different. For each segment you must specify the portion of costs to be charged to the production
`cost centers and the portion of costs to be charged to the administrative cost centers. The following
`diagram illustrates this process.
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`I
`
`Senders
`
`Receivers
`
`"Ad min. building" cost center
`AIIo cation 100% actua I costs
`
`"Admin." cost center
`r Tracing factor: m2 floorspace
`
`"Energy" cost center
`Allocation
`
`30% actual costs
`
`"Admin." cost center
`r" Tracing factor: m2 heated
`floo rspace
`
`I
`
`I
`
`"Energy" cost center
`Allocation
`
`70% actual costs
`
`y
`
`Tracing factor: Gas usage acc. to
`mete r readings
`
`|
`
`"Production" cost center II
`
`The values of senders within a segment must
`be assigned using the sa me method
`(such as fixed percentage, fixed portion etc)
`
`The same tracing factor must be
`used for the receivers with in
`a segment
`
`The segments are processed sequentially during the allocation.
`Caution
`If the total percentage of both groups exceeds 100 %, the system issues an error message.
`total percentage is less than 100 %, the remainder stays on the cost center.
`
`If the
`
`Cycles
`
`You can link several segments together in a cycle.
`Structure of the Cycles
`You could define a cycle for the entire controlling area. However, to improve performance and
`streamline the allocation process, it is advisable to create several cycles and process them
`sequentially. There are several reasons for doing this:
`¯ The costs for sub-areas of the firm can be allocated separately using several cycles. This
`means that you do not need to repeat all the cycles if you need to correct errors or make any
`changes.
`Example:
`You have divided allocation into four cycles. An error occurs in the third cycle. You can correct
`this error and repeat the allocation for this cycle. You only have to repeat the fourth cycle if it
`requires the results of the third cycle.
`This procedure is attractive to firms with a large number of cost centers, where it would be too
`time-consuming to process the allocation as a single cycle. Dividing the allocation into several
`cycles also allows you to allocate costs at different times.
`¯ You can create modular allocation cycles. The non-production cost centers can, for example,
`be processed in the first cycle and the final cost centers in a later cycle.
`Cycles for Allocating Planned and Actual Costs
`You create separate allocation cycles for allocating planned and actual costs.
`In Customizing:
`¯ you create the allocation cycles for planned values under the menu option Planning,
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`¯ you create allocation cycles for actual values under the menu option Actual postings.
`You can also create cycles for the allocation of planned and actual costs from the application
`menus. To do this, select the menu option Cycle from the menu bar.
`Allocation Process
`Within the cycles, allocation is carried out either
`¯
`iteratively
`¯ not iteratively
`If you want to process the allocation iteratively, you must activate the "lterative" indicator for the
`cycle. The R/3 system also takes cyclical structures in the cost center network into account during
`the allocation.
`Example:
`Cost center A allocates costs to cost centers B and C (according to fixed percentages).
`Cost center C allocates costs to cost centers A and B (also according to fixed percentages).
`The allocations from cost center A are defined in Segment 1, and those from cost center C are
`defined in Segment 2.
`1. The costs in cost center A are allocated.
`2. The costs in cost center C are allocated. The amount received by C from A (in step 1) is also
`allocated.
`3. The costs in cost center A are allocated. The (interim) amount received from C (in step 2) is
`included in the allocation.
`The diagram below illustrates this example:
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`Sender: A
`
`Receiver: B
`
`1,000 ~ ~ 50%
`
`~~._Receive r: C
`
`~= 50%
`
`Dr 50%
`
`Sender: C Receiver: B
`O4
`t-® Arnount~.._
`~:
`from1
`03
`
`~’
`
`~Receiver:A
`
`50%
`
`c
`500
`
`125
`
`A
`
`B
`500
`
`250 250
`125
`67.5 67.5
`
`1,000
`
`Calculation .~te p.~
`
`A 1,000
`c
`500
`A 25O
`C
`125
`
`1
`
`2 3 4
`
`This cycle is repeated until all the participating sender cost centers have been credited in full
`(unless you have specified th