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Inventory Price difference & COS Price Variance to be allocated to COPA

Dear Experts,

The Inventory Price differences (from MIRO) & COS price variances (revaluation from a price change assigned to UMB in OBYC) GL accounts created as cost elements have been defaulted to Cost centers in OKB9 (which should not have been done as per SAP recommendation) and the business wants to allocate this cost to other cost centers, and then to product/material group & profit center.

What is the best practice for this issue and can we remove the default cost center and directly default these costs to PSG in OKB9?

Or if these costs are to be allocated to COPA (costing based) through KEU1 assessment cycle, then what would be the basis to do the allocation?

What should the receiver tracing factor be in this case (Variable portions, or Fixed cost, percentage, portions)?

What would be the record type (in case of variable portions) and what would be the receiver weighting factor (per receiver) to allocate the cost to the required receivers.

After the allocation is executed what would be the impact, if suppose the receiver is a product for example. What would be the impact on the profitability?

Which one is the best alternative or solution: 1 - to remove default cost center and enable PSG as default in OKB9, so that any posting to these accounts automatically get update in COPA. 2- To execute the COPA assessment cycle.



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