Skip to Content
avatar image
Former Member

Run Distribution and Assessment cycle together

hi experts;

     At my company which is (Constructions) the management needs to allocate the Overhead expenses over the Projects.

the structure as following:

- we have 4 company codes 1000, 2000, 3000 and 4000

- The first Comp. Code 1000 is the main center which we use it for paying all the General and overhead expenses which to be distributed at end of each year over the remaining comp. codes 2000, 3000 and 4000 and accordingly to close all of its expediters to ZERO.

-  Then we have major Business Areas under each company code defined as Plants under each company code, each of these Plants has its own expenses and it carries a part of the expenses occurred at the company code above it.

- Then under each Business Segment which is defined as Plant we have Projects which has its own expenses and carries part of expenses from the Plant (business segment) above it.

More explanations:

we have three levels of Distributions:

Level one: Costs on different Cost Centers on Company Code 1000 to be distributed over Cost Centers related to the three other company codes.

Level Two: Costs of Cost Centers from Company Codes 2000, 3000 and 4000 Plus costs received from Cost Centers from Level one to be Allocated    over Business Segment which are defined as Plants.

Level Three: costs of each Plant plus the costs which they received from above cost centers to be allocated over the Projects.

Questions:

1. Can I use the Distribution Cycle to allocate costs from level one over level two in order to close all of expenses on company code 1000. Then  to use Assessment Cycle between Level 2 and 3 and then over Projects?

2. If I can use Assessment Cycle to allocate costs from level 3 over the Projects, can it be posted to WBSs?

3. Is defining the business sectors as Plants correct or wrong, if it is wrong what is the correct object to be used (Segment, Business Area or what) ?

thanks in advance;

Kind regards;

Ahmad Mahmud;

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • Best Answer
    Dec 24, 2014 at 12:08 PM

    Hi Mahmud,

    1. Yes you can use distribution cycle and assessment cycle for distribution of costs. But you have to transfer the costs to WBS elements not to project. Because project is not a cost object.

    2. You have to transfer it to WBS only

    3. You can use Business area as business sectors. Because you can link the plant to BA in OMJ7. So your business area and plant would be the same.

    Regards,

    Mukthar

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi Mukthar;

          

           Thanks you very much for your helpful clear simple effective answer.

      can you kindly guide me little bit more regarding such issue.

      you know the forum is full of many scenarios are talking about distribution and assessment cycles but I have some questions to understand its concept deeply in order to be able to implement it effectively.

      1.) I created a Distribution Cycle at KSV1 and executed it through KSV5 but I found no FI documents are created. So, after search I new that I must activate the Real Time integration and assign the company code to its variant.

      The  Question is: in our case scenario which company code to allocate the sender or receivers (however the receivers will be senders to levels below them) what I made that I assigned all of them. is that right or wrong?

      2.) After Define Variant for Real Time integration and Assign such variant to company code(s), I have to Define Account Determination.

      The Question is: Which Accounts to be only Expense Account or all P&L or even the Bal. Sheet Accounts? Also what is the Substitution Field, how to define it and for what it is defined and how to use it?

      Thank you very much Mukthar.

      And perhaps will be some more inquires, so if that does not bother you and your interested to participate in helping please let me know and any way I do appreciate your help so much.

      Kind regards;

      Ahmad Mahmud;

  • avatar image
    Former Member
    Dec 24, 2014 at 12:24 PM

    Hi Mahmud

       Really interesting scenario...

       1.1st level cost allocation from CCtr/1000 to CCtr/2000

                                                                              CCtr/3000

                                                                              CCtr/4000

           I think 1st condition should be all CCodes under same CO area then you can have CCtr master data link. But I have never seen this type of assessment allocation but can be tried as under same CO area all cost centers will be available under one standard hierarchy

          May test

       2. 2nd level allocation: Plant can't be a cost object receiver..so What you actually mean by that. I think you want to allocate cost collected in CCtr/2000 to other cost object...please explain in full details

       3. Allocate cost to WBS elements....if 2nd is solved...this level may be achieved

      See other response

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi Kamal;

           yessss 😊

      it is working. I got the distribution cycle and it creates new FI document on the lower level company code with its cost centers and closes the Exp. Acc. in the sender Comp. Code with its cost centers.

      kind regards;

      Ahmad Mahmud;