Difference Btw Secondary cost allocation and activity allocation

Hi All
Can anyone let me understand what is the difference between Secondary cost allocation, activity allocation and direct cost allocation? I will be thank full if some one elaborate it with practical example.
Thanks

cbairi wrote:
Hi,
Can someone explain what is the difference between cost allocation and accounting flexfields.
Cost Allocation Flexfield is used in Payroll and Account flexfields are used in Financials. Basic difference is that you may want to charge to the same GL number even though the cost is coming from two different cost centers. Like say Overtime and Regular Hours Costs.
But it is always recommended that you use the same value sets for the common segments
For instance let us say an employee A is assigned to a payroll P and the employee has a default code comibination(i.e the accounting flexfield) information. Now all the costs incurred on this employee will go to the accounts defined in the accounting flexfield. It will not automatically go to the accounting flexfields but you have to map cost allocation flex with GL Flex and then run the transfer process.
let us know if it explained your doubts or not.

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thanks
rgds

hi,
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Cost centers represent areas of responsibility (management areas) that generate and influence costs.
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best rgds,
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Hi friend,
Order confirmation will be done for order operations.While doing confirmation we post the actual work done by the repective work center and respective activity type assigned to the same workcenter.
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Hi Pete,
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could you please tell the difference between master and sender cost centre.
I want this information very urgent.
Thanks rakesh

Hi!
The master CT is a default Ct in your system.
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http://help.sap.com/saphelp_nw70ehp1/helpdata/en/47/e8c56ecd313c86e10000000a42189c/frameset.htm
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John Weeks
WaveMetrics, Inc.
Phone (503) 620-3001
Fax (503) 620-6754
www.wavemetrics.com

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Hi,
how can I link a cost center to an activity type ?
Regards

Hi..
You can defined a activity type to a cost centre category not a particular cost centre.
Suppose you have one activity 99xxxx you can defined it to cost centres cat "P" for prod
you can defined it in KL01 activity master creation.
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Edited by: kkbdsp on Mar 29, 2011 10:03 AM

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Difference Btw Secondary cost allocation and activity allocation

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