SAP-CO : Distribution, Assessment & Universal Allocation

Understanding Cost Allocation: Distribution & Assessment in SAP

Learn about cost allocation techniques in SAP, specifically Distribution and Assessment, to efficiently transfer costs from one area to another. This course provides a comprehensive understanding of these powerful tools for financial accounting.

Distribution:

• Purpose: Transfers primary costs from a sender cost center to various receiving controlling objects.
• Senders: Cost centers or business processes can act as senders.
• Receivers: A wide range of receivers are supported, including cost centers, WBS elements, internal orders, cost objects, and business processes. Customize receiver categories as needed.
• Primary Postings: Focuses on primary postings (e.g., energy costs) collected at the sender and allocated at period-end using a user-defined key.
• Cost Element Preservation: The original cost element remains unchanged during distribution.
• Detailed Line Items: Line items are posted for both the sender and receiver, ensuring accurate allocation recording.
• Reversibility: Distributions can be reversed as frequently as required.
• Cycle-Segment Method: Defines sender-receiver relationships using the Cycle-Segment method.

Assessment:

• Purpose: Transfers both primary and secondary costs from a sender cost center to receiving controlling objects.
• Senders: Cost centers or business processes can act as senders.
• Receivers: Similar to distribution, receivers can be cost centers, WBS elements, internal orders, cost objects, or business processes. Customize receiver categories.
• Cost Element Summarization: Original cost elements are summarized into assessment cost elements (secondary cost element category = 42) during the assessment process.
• Performance Benefits: Assessment offers improved performance compared to periodic reposting and distribution due to fewer total records.
• Drill-Down Considerations: Assessment is suitable when detailed cost drill-down at the receiver is not a primary requirement, as original cost elements are not displayed in the receivers.
• Reversibility: Assessments can be reversed as often as needed.
• Cycle-Segment Method: Utilizes the Cycle-Segment method to define sender-receiver relationships.

Course Content Breakdown:

GUI: Distribution Cycle

• Create Distribution Cycle - Based on Fixed Percentage
• Record Actual Cost On Sender Cost Center
• Execute Distribution Cycle & Its Impact
• Reverse Distribution Cycle & Its Impact
• Distribution Cycle - Based on Fixed Portion
• Distribution Cycle - Partial Posted Amount Pick For Allocation
• Distribution Cycle - Multiple Segments
• Distribution Cycle - Segments Lock
• Distribution Cycle - Iterative Check
• Distribution Cycle - Cumulative Check
• Distribution Cycle - Drive Functional Area Check
• Distribution Cycle - Based on SKF

SKF Types & Their Impact

• Create Distribution Cycle - Based on SKF with Cumulative Check
• Create Distribution Cycle - Based on Actual Cost on Receiver Cost Center
• Create Distribution Cycle - Based on Actual Cost with Cumulative Check

GUI: Assessment Cycle

• Create Assessment Cycle
• Record Actual Cost On Sender Cost Center
• Execute Assessment Cycle
• Create Assessment Cycle - Based on Actual Activity Confirmation

Fiori: Distribution Cycle

• Create Distribution Cycle - Based on Fixed Percentage
• Execute Distribution Cycle
• Impact Of Execution of Distribution Cycle
• Reverse Distribution Cycle

Fiori: Assessment Cycle

• Create Assessment Cycle - Based on Fixed Percentage
• Assessment Cycle - Based on Other Options

This course will guide you through the practical application of Distribution and Assessment cycles in SAP, covering both traditional GUI and modern Fiori interfaces. Master cost allocation, improve financial reporting, and gain valuable insights into cost management within your organization.