This document provides a step-by-step guide on configuring and executing Distribution and Assessment cycles within SAP Controlling (CO).
Both Distribution and Assessment Cycles are methods used in SAP ERP to allocate costs from one sender object (typically a cost center) to one or more receiver objects (also usually cost centers). They are part of a broader “Allocation” process within SAP’s Controlling (CO) module, which aids in the periodic allocation of costs. The underlying goal of both cycles is to transfer costs to where they are incurred, reflecting operational activities. The cycles utilize allocation rules for the cost transfers.
However, these cycles differ significantly in how they handle cost elements:
- Distribution Cycle:
- Allocates primary costs directly from a sender cost center to receiver cost centers.
- Retains the original primary cost element. The original cost element information remains in the costing process, providing traceability and detail on the types of cost being transferred (e.g., salaries, materials). The posting occurs against the original cost element.
- Assessment Cycle:
- Allocates both primary and secondary costs from a sender cost center to receiver cost centers.
- Does NOT retain the original cost element. The costs are transferred via an “assessment cost element,” which is a secondary cost element that acts a grouping point. The original cost element’s detail is obscured.
- Useful when the specifics of allocated cost (which primary cost element was origin) do not matter for the receiving object. For example, shared services costs transferred from a single common account.
This document primarily focuses on these two allocation methods, describing specifically:
- Distribution Cycle Setup: This involves defining the distribution cycle (SPRO path provided). The core idea is to allocate primary cost elements (ex. salary expenses) from sender cost center to multiple receiver cost centers. Includes defining sender cost center, associated cost element, and receiver cost centers (with fixed allocation percentages).
- Journal Posting for Distribution: The document uses Transaction Code FB50 for posting salary expenses to the designated common cost center. This step establishes the initial cost that needs to be distributed with the cycle configuration.
- Actual Distribution Cycle Execution: The document uses transaction KUV5 to trigger the actual run of the pre-configured distribution cycle. Before the actual run, a test run is recommended to verify senders and receivers correct values and percentage splits.
- Assessment Cycle Setup: This involves defining the assessment cycle. This process uses secondary cost elements. The example process in document shows allocation of administrative expenses from a sender cost center to multiple receiver cost centers. Like distribution, fixed allocation percentages are used here. This cycle uses secondary cost elements.
- Secondary Cost Element Creation: Transaction code FS00 is used to create a secondary cost element of category 42 (assessment), required for cost allocations within the assessment cycle.
- Journal Posting for Assessment: Transaction code FB50 is used to post administrative expenses to the relevant common cost center, similar to the distribution process, this establishes the cost allocation basis.
- Actual Assessment Cycle Execution: Use transaction KSUB to execute the assessment run. Like distribution, a test run is advised before execution to verify all senders and receivers are setup correctly.
The document thoroughly guides the configuration and execution of both Distribution and Assessment Cycles, highlighting the necessary SAP transaction codes and configuration points within the CO module for handling intercostal center allocations efficiently.
Download – Users Guide Distribution & Assessment Cycle in SAP CO