Hi Mohan,
With periodic allocations, the costs incurred are allocated by means of user-defined keys (for example, fixed amounts or percentages). With this method, the actual costs incurred for each period can only be identified after the given period is closed.
Periodic allocations include
Distribution
Assessment
Indirect Activity Allocation etc
Distribution is used to allocate the primary costs of a cost center. The following information is passed on to the receivers:
The original cost element (that is, the primary cost element) is retained.
Sender and receiver information (for example, the identities of the sender and receiver cost center/business process) is documented using line items in the CO document.
You can use the information system to analyze the distribution results according to sender and receiver relationships.
Assessment is a method of allocating primary and secondary costs in Cost Center Accounting and Activity-Based Costing. The following information is passed on to the receivers:
The original cost elements are assigned cumulatively, or in groups, to assessment (secondary) cost elements. The original cost elements are not recorded on the receivers.
Sender and receiver information (sender cost center, receiver cost center, or business process) appears in the Controlling (CO) document.
Allocation through assessment is useful when the composition of the costs is unimportant for the receiver. For example, the assessment of cafeteria costs to a cost center need not be broken down further.
You can use the information system to analyze the assessment results by assessment cost element according to sender and receiver relationship.
Ideally assessment or distribution are part of the period end ectivities in controlling but it depends purely on the business logic whether they are run at month end or not.
Pls assign points and let me know if you need anything specific.
Rgds
Manish
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.