Cost center Accounting

Maintain & Execute Distribution Cycles

Periodic Allocations: In Distribution and Assessment, you further allocate costs (or quantities
for Indirect Activity Allocations) collected on a cost center during the accounting period to receivers,
according to user-defined keys. These are therefore indirect allocation methods, because the
exchange of activity is not the basis for allocating costs/quantities. Instead, user-defined keys such as
percentage rates, amounts, statistical key figures, or posted amounts provide the cost/quantity
assignment basis.
The advantage of these methods is that they are easy to use. You usually define the keys and the
sender/receiver relationships only once.
Distribution and assessment are used primarily for cost centers. This is because direct cost allocation
is not possible here due to the variety of transactions, the lack of clearly defined individual activity
types and the fact that the entry of the activity is too time-consuming. For example, the costs of the
company cafeteria may be assigned based on the number of employees in each cost center.
Telephone costs are seldom allocated directly to the individual cost centers, but are collected on a
clearing cost center for each period. They are then reposted or distributed at the end of the period
according to the number of telephone units or telephone installations in each cost center.
In Target=actual activity allocation the system determines the actual activity quantities to be allocated,
based on the plan activity inputs of the receiver, and taking into account the operating rate of the
receiver.
Prerequisites
Allocations are carried out at the period end (during period-end closing) and draw upon predefined
parameters (keys, sender-receiver relationships).
You can use different currencies for the periodic allocations. To do this, you must have selected All
currencies during controlling area maintenance.
The currencies are converted using the translation rates you entered in Customizing when configuring
the system (see also: Currency Definition ).
The value date determines which currency translation rate is used for the currency conversion. If you
do not enter a value date, the system estimates the most accurate translation rate for the period.
 Distribution Cycle.
 Assessment Cycle.

Meaning - Distribution cycle

Distribution is used to allocate primary costs. The following information is passed on to the receivers
in this process:
 The original cost element (the primary cost element) remains.
 Sender and receiver information (sender cost center, receiver cost center, or business
process) appears in the Controlling (CO) document.

You can use the information system to analyze the distribution results according to sender and
receiver relationships.
 Cost center Accounting
Maintain & Execute Distribution Cycles
Testing Done at RBQ-600
Create Plan Distribution Cycle. – KSV7
 Cost center Accounting
Maintain & Execute Distribution Cycles
 Cost center Accounting
Maintain & Execute Distribution Cycles

Press SAVE button

Press Overview Button

 Cost center Accounting
Maintain & Execute Distribution Cycles

Locked Segment _ SEG1 and then save.

Cost Allocations: KSVB – Execute Plan Distribution- Cycle DE001 need to execute
 Cost center Accounting
Maintain & Execute Distribution Cycles
Before executing the scenario, we will check the report: S_ALR_87013611

Execute
 Cost center Accounting
Maintain & Execute Distribution Cycles
Now Execute the Distribution cycle: KSVB

Press Execute
 Cost center Accounting
Maintain & Execute Distribution Cycles

Remove test Run and Re-execute

 Cost center Accounting
Maintain & Execute Distribution Cycles
 Cost center Accounting
Maintain & Execute Distribution Cycles

Distribution cycles run successfully. We have allocated the cost from 1 cost center to another cost
center.