Assess into COPA

Question

Hi Friends,
Could you enlighten me, how is cost center allocation to CO-PA done?
Does it mean that Sender is Cost center and Receiver should set to P&L Line?
I am trying to understand what happens when "cost center is assessed into CO-PA".
Please advise.
Best clear answer is guaranteed Full points.
Regards
Markus

Answer 1

Hi,
To add to the previous reply, you need to do the following:
1)     Define Assessment cycles with Cost Centre as the Sender & profitability segment as the Receiver.
2)     You need to define Allocation Structures and select this in each segment of the Assessment cycle. This maps the primary cost elements to the Secondary Assessment cost elements.
3)     You need to define PA Transfer structures which maps the primary Cost Elements to COPA Value fields.
4)     If you are using variable values as basis of Allocation then you need to use an appropriate Value field as a Tracing factor for e.g. Gross Sales, Net Sales, Cost of Goods Sold, etc.
however, to avoid system performance issues, please note that If the number of characteristics are too many better alternative is to assess the costs from the Cost Centre to combination of high level characteristics i.e. Sales Org, Distr Channel, Division, etc as there are and then use Top Down Distribution (KE28) in COPA to assess costs to lower level Characteristics i.e. Customer, product, Brand, etc.
assign points if useful.
regards,