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author's profile photo Former Member
Former Member

Cost Transfers

Hi Gurus..,

This is regarding the Transfer of Cost b/w multiple company codes....

That means here is the FI Org Structure of my client

Client -

> Company-- -> Compnay Code 1 -> Company Code 2 > Company Code 3 -> ----> Business Areas for each company code....

In this case there are some transaction which will be take place b/w these company codes....

So, when ever i want to know the Cost for Individual Company Codes first of all, i need to setoff the cost for these company codes..

For these how can i go ahead with this scenario....

Please help me out...

Thanks In Advance..


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    author's profile photo Former Member
    Former Member
    Posted on Mar 02, 2007 at 11:31 AM

    If both the company code are assigned to same controlling area then you can allocate cost from one company code to another.

    For this you may use functionality of Distribution or assessment.

    The need for such allocation may arise in a situation where you have one company code for Head Office and wants to allocate the expenses to other divisions, which have been defined as company codes, to get true profitability.


    Rakesh Pawaskar

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    • Former Member Former Member

      Distribution is a functionality wherein you have to define a sendor and receiver relationship and the basis of allocation (i.e. statistical key figures). Here cost gets allocated from the sendor to receiver under the same cost element. Distribution can be used for allocation of primary cost only. The t code for this KSVB for plan and KSV5 for actual distribution. You will have to first define a distribution cycle, which will give necessary details for allocation. i.e. sender, receiver, SKF.

      Assessment is similar to distribution except for the fact that it allocates expenses from one cost center to another under secondary cost element. The T code for this is KSUB for plan and KSU5 for actual. Here also you need define a assessment cycle.


      Rakesh Pawaskar

  • Posted on Mar 02, 2007 at 01:50 PM

    Hi !

    We can transfer the cost from one cost object to another cost object across the company codes provided these company codes are assigned to the same controlling area.

    The transfer can take place through Assessment / Distribution/ Reposting

    If you have set up the cross company code posting settiings, reconciliation of the CO Books with FI Books will take place through T-Code KALC.

    This reconciliation will keep both FI and Costing books reconciled.



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