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Former Member

allocation

hi,

What is allocation and how does that works in CO?

Please explain me

thank you

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2 Answers

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    Former Member
    Aug 21, 2007 at 06:48 PM

    Hi KP KP

    Please search in this forum for this topic. There are many useful information

    Thanks

    Ashok

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    Former Member
    Aug 22, 2007 at 09:18 AM

    Hi,

    Support cost centre like Accounts, HR, Logistics etc. are actually only cost centres. Hence at the month end the cost needs to be allocated to the different product lines using the services. These product lines have their own cost and profit centres.

    The parameter are customised as SKF (Statistical Key figure) and we create the allocation cycle in which we mention the sender cost centre(s) whose cost needs to be allocated and receiving cost centre(s). There will be no FI posting for the allocation as the same is applicable in CO only.

    Hence we need to create the secondary cost element too to hold the data of allocation.

    Hope this helps, if yes, please assign points.

    Regards,

    Harish

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