Distribution of assessed costs/secundary cost elements

Hi All,
I am trying to figure out the assessment and dsitribution topic. Now I run into the fact that I am not able to distribute cost from an assessment secundary cost element. What I want to achieve is the following:
Using a G/L posting I posted 4000 euros on cost center HOUSING. Based on square meters I assessed those costs to 3 other cost centers, IT, SALES and PRODUCTION. This works fine.
After assessing I have 750 on cost center IT, coming from HOUSING. Now I want to distribute all IT costs to cost centers SALES and PRODUCTION. However, the distribution process does not distribute the 750 euros of 'assessed HOUSING' costs from the IT cost center. Other costs (coming from G/L) on the IT cost center ARE distributed. I have some warnings stating that secundary costs are not supported in primary cost distribution. Is there another way to distribute those secundary costs?
Thx, Paul

Hi,
Secondary cost elements postings,you can't allocate costs using distribution cycles.
you have to use assessments to allocate secondary costs element postings.
see below explainations.
Distribution
Distribution is an activity that you perform periodically, during the period-end closing in Overhead Cost Controlling (CO-OM), in which primary overhead costs are distributed from one or more sender objects to one or more receiver objects.
Many documents in Financial Accounting involve overhead costs. A clear allocation to one or more cost centers is not possible, or only with a major effort. You can use the allocation cost centers and internal orders as auxiliary constructs in such cases. During distribution, these costs are allocated (distributed) from their allocation cost centers to the actual receivers according to freely definable rules. The sender cost center is credited, and the receiving cost center charged, under the original cost element. In contrast to periodic reposting, however, the accounting information is lost in the process.
Assessment
Assessment is an activity that you perform periodically, during the period-end closing in Overhead Cost Controlling (CO-OM), in which primary and secondary overhead costs are assessed from one or more sender objects to one or more receiver objects.
Assessment means that the sending cost center is credited and the receiving cost center is charged under a freely definable secondary cost element. The original cost elements that were charged by the sender cost center are lost, and are converted to one or more assessment cost elements (secondary cost elements).
Assessment groups together the posted primary and secondary costs and allocates them to the receiving cost center(s) in an assessment cost element. The cost centers for assessment are the quality lab, IT, cafeteria, housekeeping and plant security.
For example, you could assess the cost from the Reception cost center to the other cost centers based on the headcount managed in those cost centers.
hope this helps you.
Thanks,
Rau

Similar Messages

Sender Cost Element Group role in Assessment Cost Element Cycle

Hello,
We have an assessment cycle as below:-
Assessment Cost Element - 6000000
Sender Rule - Fixed Amount
Receiver Rule - Variable Portions
Sender Cost Center - 1000
Sender Cost Element Group - ABCD
Receiver Order Group - XYZS
Sender Values - 2,00,000 USD - Cost Center 1000
Cost Element Group in Receiver Tracing Factor tab - EFGH,
When I see the line item report of sender cost center 1000, I am able to see the total value as 2.00,000 USD credited, but I am not sure about the role of Sender cost element group ABCD in this situation.
Also what is the role of receiver cost element group EFGH?
Please advise.
Thanks
Tapan

Hi Tapan,
When you have selected in sender rule fixed amount then the system will transfer that amount to the receiver cost center specified irrespective of the total amount of cost element group existing in the sender cost center. There is no significance of cost element group mentioned in the sender rule then.
The role of the receiver cost element group in the tracing factor is used to apportion the amount of the sender according to the expenses existing on the orders in your case.
Regards,
Divraj

Cost Center Assessment - cost element type 42

Hi dear All,
I got issues running KSU5 to allocate planned costs under cost element type 42. we were expecting that all planned costs (primary and secondary(cost element type 42)) could be allocated by credit cost center (actual). only primary costs are being allocated.
Scenario:
cost center planning (kp06) 1000 currencies in primary cost element in cost center A
running planning assessment - KSUB: cycle uses assessment cost element (type 42): sender cost center A, receiver cost center B (all planned values). assessment cyles posts 1000 currencies from CC A to cost center B
planning in cost center B (primary cost elements through kp06, 500 currencies) total planning 1000 from previous assessment with CE type 42, and 500 from cc planning in a primari CE.
by the period end closing, tcode KSU5 (allocation actual) is running. new cycle created, based on planned values (origini not actual, but planned amounts).
we were expecting to allocate 1500 currencies from cost center B to cost center C (using 100% and through assessment cost element)).
result: credit actual cost center B = 500 currencies debit actual cost center C = 500 currencies.
1000 currencies pending on cost center B (planned).
do you know why SAP is not allocating the 1000? even if those 1000 were planned in cost center B by assessement, a new allocation cycle should be able to post them or not?
thank you for your outcome.

Hi dear Ajay, thank you for your answer.
first, I understand the difference between KSUB and KSU5, in the defined scenario, we have both. planned values, become actual with the MEC activities. business definition.
regarding the cycle, I have setup assessment cost element so we can get all planned lines posted as 1.
On sender tab I have only the cost center. no cost element defined.
receiver its cost center.
furthermore, i've not setup allocation structure, so all cost elements should be allow, there is no restriction on this.
the only difference is: planned costs which their origin is already an assessment are not being assessed again.
I can show you the print screens with cycles setup if it helps
best regards
MF

Planning for Assessment cost element

Hi
How we can do the planning for Assessment cost element ?? why it is different from other secondary cost element planning.
Thanks
Deepak

both are two different things in term of business applications.
When you know exact amount to be planned at cost center level then this is SCE planning and when you dont know exact amount then that can be done through assessment planning.
Hope this helps you.
Ashokl

How to find the origin costs(primary CE) for Assessment cost elements

Hi All,
How can we trace the Orgin costs(cost senders) for Assessment cost element.
I have to create Co report where user wants the Costs senders(primary cost elements) details for Assessment cost element.
Our cycles are defined as senders - cost center and receiver's are Internal orders.
so for assessement cost elements what are the primary cost senders.
Is it possible to trace the primary cost elements details for Assessment cost elements.
Regards,
Raj

Hi Chirstian,
Thanks for the information.
I have done the same as per your advise.
I am trying to pull all the primary cost elements which are posted with my sender cost center's.
All the cycles are defined as share in % = 100%.
But unfortunately all the debits are of primary cost elements is not equal to credit amount of my Assessment cost element.
The figures are very far and couldn't trace the difference amount. Is there any other report in SAP or how i can define in report painter to meet this requirement.
Thanks & Regards,
Raj.

Secondary cost element in KB11N

Hello.
I'm not allowed to use a secondary cost element in a reposting.
What do I have to modify?
Thank You

Hello,
You cannot use secondary cost element. You need to use primary only.
Please go through the following:
DISTRIBUTION =========== Distribution was created for transfer primary costs from a sender cost center to receiving controlling objects. During distribution, only cost centers or business process can be used as sender. A distribution receiver can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary Postings (such as, energy costs) are collected on a cost center, and allocated at the end of the period by means of the user-defined key. You can only distribute primary costs. During this process, the original cost element remains the same. Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded exactly. You can reverse distributions as often as required. You use the Cycle-Segment method to define sender-receiver relationships. PERIODIC REPOSTING ================= Differences between periodic reposting and distribution are due to information content and performance. For periodic reposting, no separate credit record is written on the sender for the cost element in the summary report. Instead, the totals record for the cost element is reduced on the debit side, which means that the original debit amount can no longer be checked there (u201Cunclean creditu201D). However, during distribution, the system writes a totals record for the credit (u201Cclean creditu201D). The information on the receiver is the same for periodic reposting and distribution (u201Cclean debitu201D). Compared with periodic reposting, during distribution, the system also updates the partner in the totals record for the sender. This means that the partner can be displayed in the information system on the totals record level. As fewer totals records are written during periodic reposting, performance is better than during distribution. ASSESSMENT =========== Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, cost center or business processes can be used as senders. The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver categories in customizing. Primary and secondary posting are allocated at the end of the period by the user-defined key. During assessment, the original cost elements are summarized into assessment cost elements (secondary cost element category = 42). As the system writes fewer total records, the assessment has a better performance than periodic reposting and distribution. The system does not display the original cost elements in the receivers. Therefore, assessment is useful if the cost drilldown for the receiver is not important. Similar to distribution, the partner is updated in the totals record during distribution You can reverse assessments as often as required. You use the Cycle-Segment method to define sender-receiver relationships. Regards, Ravi

Assessment Cost Center ??

hi all,
In controlling what is the meaning of assessment cost center... Mainly in internal activity allocation why the need of this cost element arises ?? (we include the secondary cost expence in Internal activity allocation)... at thye time of distribution why the need of this assessment cost element seperately ???
thank you...
Padmini

Assessment functionality is used for transferring cost from one cost center to another cost center, say service cost center to production cost center. Also for transferring the cost one is not interested in having the break up of cost transferred i.e. individual cost element wise transfer is not required and the same can be combined while transferring.
Assessment cost elements also helps in having identification of own and apportioned cost on the cost center.
Hope this helps.
Regards
Rakesh Pawaskar

Cost center & cost element

Hi Experts,
Can anybody please tell me,
What is difference between cost center and cost element.
what is exact role of both.

Hi,
Cost Center
Definition
External object (object type K) from Controlling which represents a clear origin of costs.
If you implement the Controlling component, you can find more information in SAP Library under Cost Center (Financials u2192 Controlling u2192 Cost Center Accounting u2192 Master Data in Cost Center Accounting (CO-OM-CCA) u2192 Cost Center)
and
Cost Center Accounting (Financials u2192 Controlling u2192 Cost Element Accounting).
Use
By assigning cost centers to organizational objects, you determine where costs incurred by the object are to be charged. The inheritance principle applies: If an organizational object is not assigned a cost center, the cost center assigned to the superior object applies.
An organizational object may also be assigned more than one cost center. For more information, see Cost Distribution (infotype 1018).
Integration
A cost center can be related to the following organizational objects:
·        an organizational unit via relationship A 011 (Cost center assignment)
·        a position via relationship A 011 (Cost center assignment)
·        a work center via relationship A 011 (Cost center assignment)
Cost Elements
Definition
Cost elements classify an organizationu2019s valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts.
Structure
We distinguish between primary cost and revenue elements and secondary cost elements.
Primary Cost/Revenue Elements
A primary cost or revenue element is a cost or revenue-relevant item in the chart of accounts, for which a corresponding general ledger (G/L) account exists in Financial Accounting (FI). You can only create the cost or revenue element if you have first defined it as a G/L account in the chart of accounts and created it as an account in Financial Accounting. The SAP System checks whether a corresponding account exists in Financial Accounting.
Examples of primary cost elements include:
· Material costs
· Personnel costs
· Energy costs
Secondary Cost Elements
Secondary cost elements can only be created and administrated in cost accounting (CO). They portray internal value flows, such as those found in internal activity allocation, overhead calculations and settlement transactions.
When you create a secondary cost element, the SAP System checks whether a corresponding account already exists in Financial Accounting. If one exists, you can not create the secondary cost element in cost accounting.
Examples of secondary cost elements include:
· Assessment cost elements
· Cost elements for Internal Activity Allocation
· Cost elements for Order Settlement
Integration
Cost elements in Controlling (CO) are closely related to the general ledger accounts used in Financial Accounting (FI). This is because the SAP System is structured as an Integrated Accounting System:
Cost elements document which costs (differentiated by category) are incurred within a settlement period, and in which amount. They provide information concerning the value flow and the value consumption within the organization. Cost Element Accounting and Cost Center Accounting/Internal Orders are closely linked in the SAP System. Each posting to an account that is also a cost element, is assigned either to a cost center or order. This ensures that at period-end the data is subdivided by cost elements and cost centers/internal orders for analysis purposes. The following section describes how you can subdivide and characterize cost elements in the SAP System.
Cost element characteristics depend on the controlling area and the allocation methods used in your organization.
Hope this helps clarifying your doubt about cost center & cost element.
Regards,
Tejas

Seconday Cost element Category Uses and Importance.

Hi ,
Can any one explain me the seconday cost element uses and importance in cost accounting ?
Especially for the Cost element categories
21-Internal setellment.
42-Assesment.
43.Internal Activity allocation.
32-Order/Project result analysis.
when to use which cost element Category and examples.
I understand in the Cost sheet for the Overhead Calculation we use Seconday CE category 41.
But in the Allocation structure at the time of giving the Cost elements, i will get confused to assign the CE's.
This will be the great help.

Hi Prad,
21-Internal setellment - This category of cost element is used to settle the costs collected in a cost object to another cost object within Controlling. You cannot settle to FI or any toher Module using this category of Cost Element
42-Assesment
Assessment is a type of allocation of costs from one cost object to another cost object say from one cost center to another cost center.
In case of Distribution, the cost gets allocated using the origical cost elements. hence the origin of the cost will never be lost
But in case of assessment, you need to allocate the costs using a seperate cost element with category 42. In this case, the cumulative cost collected is allocated to another cost center unsing this assessment cost element. Hence the origin of the cost is not retained.
From a business requirement perspective, we need to use distribution for allocating the service costs to real cost centers. After that we need to use Assessments
43.Internal Activity allocation.
Using this type of cost element, we can plan, calculate the prices of activities and obsorb the costs to Production Orders, Service orders etc.
this plays very crucial role in cost obsorption in product costing or sevice costing areas
32-Order/Project result analysis.
One of the most important and complex area in Product costing would be Calculation of WIP/Result Analysis.
We will be able to calculate and settle the WIP or Result analysis value to FI only by using Cost elements created with Category 32
I hope i made it clear to you.
Please let me know if you need futher information in this regard
Surya

Reports for secondry cost elements

Hi,
I have an issue with regarding secondry cost element with cost element category 42, now i need a report, which should conatine all senders (cost objects or cost elements) details, plz some help me out.

Hi Vijay,
As far as standard reporting goes, you can see sender cost center, receiver cost center and secondary assessment cost element from the CO line item report(KSB1 or any other co report). But you can't see what's the sender cost element group. May be development needs to be done if your requirement is sender cost element group.
I hope this clarifies.
Regards
Rajesh A

How to extend secondary cost element validity period?

Hi guyz,
Is there any way to extend assessment cost element validity period ?
Need your answers asap..Thanking you

Hi,
Let me give you one ex., Suppose you have created sec. cost Element through KA06 for validity peirod 10.02.2009 to 31.12.2009. So, when you are extending the validity period for the same, you need to create this sec. cost Element again with validity from 01.01.2010 to the date you require (say 31.12.2010 or 31.12.9999).
Hope it will clear to you. Pls get back for further query.
Thanks & Regards,
Taral Patel

Distribution and Assessment

Hi,
I want to know what is the exact difference between distribution and assessement in CO. What situation we do distribution and assessment.
Regards
Babu

Hi,
Distribution: Distribution allocates primary costs only.
Example: your company has Admin dept, HR dept and Canteen Dept all are cost center.
At the month end company wants to distribute the costs of canteen to both Admin and HR dept in 40 and 60 % respectively.
If you are talking abt distribution it will allocate primary cost to admin and HR dept.
Example :- Canteen expenses incluedes Rent 1000/-, Power bill 1000/- so the total expenses of canteen will be 2000/- Rs and if i run distribution cycle. System will post 400 as Rent and 400 as electrity in Admin and
600 as rent and 600 as electricity in HR dept.
so when you see the report of Admin you can trance teh cost of rent from canteen and cost of electricy for canteen costs." Here you can trace the costs"
If you use Assessement it will be allocated using the assessement cost element .
once you run assessemnt cycle system will simply post 800 as canteen costs(As assessement cost elemnts). orighinal cost element will lose its identity.
." Here you cannot trace the costs"
Assessement : Assessement allocates primary and sencondary cost elements
Best Regards
Ashish Jain.
Message was edited by:
Ashish Bohara

Difference between Distribution and Assessment cycle

Hi,
Can any one help me regarding the above(Difference between Distribution and Assessment cycle)
Thanks in advance
Rajani

HI,
Assessment:
Assessment was created to transfer primary and secondary costs from a sender cost center to receiving controlling objects. During assessment, cost centers or business processes can be used as senders .n The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a
business process. You can restrict the number of receiver categories in customizing. n Primary and secondary postings are allocated at the end of the period by means of the user-defined
key.
n During assessment, the original cost elements are summarized into assessment cost elements
(secondary cost element category = 42). As the system writes fewer totals records, the assessment
has a better performance than periodic reposting and distribution.
n Line items are posted for the sender as well as for the receiver, enabling the allocation to be recorded
exactly. The system does not display the original cost elements in the receivers. Therefore,
assessment is useful if the cost drilldown for the receiver is not important, for example, as in the case
of the allocation for the "cafeteria" cost center.
n Similar to distribution, the partner is updated in the totals record during distribution.
n You can reverse assessments as often as required.
n You use the Cycle -Segment method to define sender-receiver relationships.
Distribution:
Differences between periodic reposting and distribution are due to information content and
performance.
n For periodic reposting, no separate credit record is written on the sender for the cost element in the
summary report. Instead, the totals record for the cost element is reduced on the debit side, which
means that the original debit amount can no longer be checked there ("unclean credit"). However,
during distribution, the system writes a totals record for the credit ("clean credit"). The information
on the receiver is the same for periodic reposting and distribution ("clean debit").
n Compared with periodic reposting, during distribution, the system also updates the partner in the
totals record for the sender. This means that the partner can be displayed in the information system
on the totals record level.
n As fewer totals records are written during periodic reposting, performance is better than during
distribution. See customizing for an example with figures that illustrates this aspect. Under utilities,
make settings for the SAPscript text display, then call up the text by choosing Periodic reposting,
Distribution, or Assessment from the menu.
Regards,
Meenakshi

Cost elements in COPA assessment cycle

Hi Experts,
I would like to know the following points while interacting with COPA reports
I have sales revenue items and financial expenses item.
How we define the structure for getting these balances into COPA reports. or is it the right way of checking the balances financial expenses with COPA reports which are not a part of production.
Can anybody please give me some inputs how to define the structure or base for getting the copa reports.
Your early replies are most appreciated
Thanks ans Regards,
Ram

Hi
Both have different purpose...
When you allocate - The cost center is credited and COPA (prof Segment) is Debited...
The credit entry is posted to cost center using a secondary cost element (Catg 42)... This is determined from Allocation Str
The Debit entry to COPA is posted/allocated to COPA in a Value Field.... PA Trf Str is the place where you map Cost Ele to Value field.. Upon allocation, the value will flow to the specified value field
Note that in KEU1, you can directly specify "Assessment cost ele" and by pass the Alloc Str
Note that in KEU1, you can directly specify a Value Field and by pass the PA Trf Str
Br, Ajay M

Through Assessment cycle can we post costs through Primary cost Element

Can we Send the Costs from Sender Cost Center to Receiver Cost Center by using Primary Cost emlement which is created with Cost Element Category as1 and by executing Assessment Cycle (KSU5)
Thank you all

Hi Naga,
1. Do you want to transfer the cost in the Cost Element which is of category 1 OR
2. You want to use that Cost Element as a cost carrier in Assessment?
In case 1, YES, you can transter the cost
In case 2, NO, you must create secondary cost element with category 42 for this purpose.
Pls revert back for further explanation
Srikanth Munnaluri

Distribution of assessed costs/secundary cost elements

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