Distribution of common expenses

Hi,
I have following scenario.-
My client is operating a multistorey mall. There are around 200 tenants in the mall. The common expenses is factored in the rental and if it exceeds than the projected it is recovered at the year end. Now to calculate the exact amount applicable to each tenant I need to divide these expenses, which I dont want to bifurcate at the Gl entry level as it will create many line items may be in thousands per month may be based on cost center wise or re object wise.
How this can be done on monthly basis. I have one option to do it bases on creating cost center for each tenant and running distribution at each month end. Any other option is available to distribute the common expenses on rental through RE and get the report at the end of the year.
Regards
Milind Sonalkar

Milind,
There are couple of ways to do this and I am sure others may suggest many more. If I understand you correctly you want to bill the tenants for their share of the expenses with the settlement to respective Rentals for reporting purpose. About the division of the exp, it depends on do you want to do it based on usage or similar measurement of any kind?
1. You can set up service charge settlement and make all the rentals participate in the settlement. Create an Invoice for the total expense and settle through the settlement Participating Group. Which will distribute the cost to each rental. Month end or whenever you execute the settlement run this can be done.
2. You can also think of Sales based condition and assign a default on every rental participating in this type of expense. You can set up a nominal charge and post during sales based settlement run. If the actual is more than the projected you can always re run the difference. Also, you have sales based reporting tools to update at contract level the actual. Once these have posted, same concept CO settlement and from GL to respective Rentals and you are good for reporting.
Settlement from Contract or Order etc will not be a bigi as you can do settlement for the Rentals, per cost element configure and assign the settlement rules and execute settlement at month end.
Jag

Similar Messages

Allocation of Common Expenses- KSV5

Dear All,
I tried to run this T Code KSV5 for distribution of Common expenses.There was no cycle found for allocation.Please suggest me as how to create the cycle and T Code to be used.
Thanks
Nagendra Prasad BS

Hi Nagendra,
In the same t.code.go to extras menu bar,click on cycle and select create from it or you can use shift+F5 button. For creation of cycle refer the link.
Create Actual Distribution 11/12/07 (via KSV5)
Regards,
Mukthar

Common expenses - Apportionment

Hi,
Can you please tell me if the SAP system has the
ability to apportion common expenses based on criteria like revenue, manpower, area, usage parameters on plan as well as actual.
What is it called.
thanks

Hi,
Create the manpower, area etc as SKF and then enter the actul values for these using KB31N.
If you want to do the apportionment in CO, then you can create assessment cycles or distribution cycles. Use the above SKF as a distribution parameter in the cycles
Thanks
GB

Common Expenses Allocation Ratiowise

Dear All,
Our clients wants to distribute common expenses (Eg security charges) in the ratio decided by users from one profit center to other profitcenter. Initially expenses will be booked under main profit center & then they wants to allocate at month end ratio wise. Also the accounting entries should get posted in the books of accounts as per profit center.
Eg.
Security Charges (Main Profit Center) Rs. 100000
Division A - 20% (20000)
Division B - 30% (30000)
The system should transfer 20% & 30% in each profit center & balance 50% remains in main profit center.
Awaits your valuable inputs.
Regards,
Nazia

If you profit centers are assigned properly and all postings for P & L item are happening to profit centers or you have profit center scenario activated then you can get the net profit.
With distribution you can increase or reduce the P & L of individual profit centers. Lets say you have 2 profit centers as A and B. After all the postings in FI you will get an P&L for A and B. Now with distribution you distribute some amount in profit center B to profit center A. Let's say telephone expenses for Rs.5000 out of Rs.10,000. Now the P&L of A will be reduced by 5000 and vice versa for B.
So distribution by itself do not give net profit of profit center but it affects the profit/loss.
Sangram

Apportionment of Common expenses

Hi All,
Can you please tell me if the SAP system has the
ability to apportion common expenses based on criteria like revenue, manpower, area, usage parameters on plan as well as actual.
What is it called.
thanks
Bhavya

Create the manpower, area etc as SKF and then enter the actul values for these using KB31N.
If you want to do the apportionment in CO, then you can create assessment cycles or distribution cycles. Use the above SKF as a distribution parameter in the cycles
Regds
Pooja

Common Expenses Process

Hi Experts,
I have a issue on common expenses within two company codes, that is
When the new employee joins into the company, company will provide a medical insurance to that new employee, say we have 2 company codes X and Y, for all employees medical insurances for X & Y will take care company X only.
Process as follows:
1.When the new employee joins, company X sends a mail to insurance company for medical Insu.
2.Once Medical Insu. received, this was send to employee department it may be other company u201CYu201D or same company u201CXu201D(department = Cost Center)
3.Insurance Company will send a debit note to the company for Medical Insu. Charges.
4.Once the debit note is received, check the calculated amount and send it to Company X or Y which department it should be charged.
For the above process how to book the entries in Companyu201D Xu201D and Company u201CYu201D.
Please give some idea on the process.
Thanks in advance
Gopi.P

Hi,
In may openion create 2 cost centers for X and Y in Company X only because all the insurance payments will be made by Company X only as you said.
At the time of posting debit notes select respective cost centers then your problem will be solved.
Thanks
Chandra

Distribution Rules- Indirect Expenses

Hi,
If we want to use Distribution rules to allocate expenses as a percentage of the total expense amount how can we do it?
Regards

Dear Vishal,
Please check the following thread for more information :
SAP Business One Application
SAP Business One Application
Regards
Vikas
Edited by: Vikas Rastogi on Sep 24, 2008 8:03 PM

The use of Common Distribution Channel & Division

Dear All,
What is common distribution channel & common division ? What is the use of it ?
Regards
Rakesh

Hi
To put it simple whenever you enter a distribution channel or division in sales order the system will search for the valid records in the common distribution channel and division which is assigned
E.G if yourcommonDistribution channels assignment is like this
Distribution channels 11 commonDistribution channels 11
For 12 it is 11
For 13 it is 13
Now in sales order when you put Distribution channel 11 the system will search records against 11
Now in sales order when you put Distribution channel 12 the system will search records also against 11
Now in sales order when you put Distribution channel 13 the system will search records against 13
The same concept is applies for Division
Hope you are very clear
This is very important assignment without this you cant do anything in S.D
You test it and see and you will understand it much better
Cheers
Raja

KIMYONG: AP Invoice Distributions 에서 Track As Asset 사용법

Purpose
Invioc 등록시 asset 계정이 아닌 expense 계정도 FA로 넘기기 위해서는
track as asset을 사용합니다. 이에대한 설명을 하고자 합니다.
Solution
The Navigation Path 는 아래와 같습니다.
Payables>Invoices>Entry>Invoices
Press Distributions button
Track as Asset을 check하는 것은 아래 의미를 가지고 있씁니다.
Checkbox Track As Asset is marked means that Oracle Payables will transfer
this distributions to Oracle Assets during Create Mass Additions execution.
Assets can be created in Oracle Assets from imported distributions
afterwards.
Default로 Asset account일경우 track as asset이 check됩니다.
이럴경우 check box는 변경이 불가능합니다.
The checkbox Track As Asset is unmarked by default when invoice distributions
have an expense account. This checkbox can be adjusted for unposted invoice
distributions only.
Reference
Oracle Payables User's Guide, Assets Integration

Hi,
Altough for all the assets accounts track as an asset checked there wont be any entries transferred to Fixed assets unless otherwise you have defined that asset account as a clearing account in your categoris.
Please let me know if you need further details,
Thanks and Regards,
MPH

Costs Distribution

Hi,
I have to solve one issue related to Co. The scneario like this. Our company is having 3 plants and each plant having 10 machines and each machine produce some items. for this i created 3 production cost centers for 3 plants to collect all expenses for their plants. I created one cost center and cost element for salaries and i created one distribution cycle to distribute to salaries expenses to 3 production cost centers. after distribution of salaries expenses each production cc is having 3000 rupees now. and PM people treating one machine as one work center. so 10 machines or work centers are assingned to one cost centers. So each cost centers each having 10 work centers. here co people asking how we distribute this 3000 to 10 machines or work centers.
My doubt is how to distribute this amount to work centers , in co there is no work center concept. please guide in this scenario by step by step.

The next step is to create an activity type called machine hours for the work center and cost center.
You need to do the cost center activity output planning through t-code KP26.
Let 's say the ten machines would work for 2000 hours each in a year, which means, 20,000 hours to be planned for each cost center.
Then derive the activity price calculation via KSPI. This will then automaticaly derive the plan price as Rs.3,000 / 20,000 hrs = 15 paise per hour.
Whenever the machine is used, you charge the recipient of the machine hour service with 15 paise per hour through KB21N. There are other ways of allocation depending on which object is recieving the service.

Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers in fbcj

Hi all ,
I have a requirement to Post Cash Journal Document using FBCJ tcode.
Is it possible multiple line items debit & single line item credit and different cost centers and different profit centers
for exp:
pk   GL a/c   description       amount   cost center profit center
40 400101 telephone exp   500        1403            P 1000
40 400101 telephone exp    100       1404            P 2000
50 200100 cash in hand      600-
   This is My requirement is it possible in fbcj
    Please suggest me.ASAP.
Regards
   Naresh.

Hi,
This you can do it in two ways:
1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy
(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)
After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.
2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.
Or
You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.
I hope this should help you.
Regards
Avisek Bhardwaj

Multiple Line Items - PS/SD/ PP - Scenario

Dear Experts,
Please advise on the following:-
There are two products, like Product A - 2 Nos, and Product B - 3 Nos, will be manufactured for a project order.
Finished product will be attached in the project structure and will be manufactured in house through PP module. Material planning will be done thorugh project MRP.
A sales order will be created with two line items, Product A - 2 Nos, and Product B - 3 Nos.
Root level WBS element will be linked with sales order header level for milestone billing.
Is it possible to see the cost and selling price comparison of product A and product B through this settings, as they are different type of product and their selling price are different.
Can the system apportioned the cost of sales based on the selling price of the product A and Product B.
Looking forward to hearing from you.
Thanking you.
Best Regards,
Abdul.

Hi,
This you can do it in two ways:
1. Make three header under top level....one Product A, 2nd Product B ( as Billing element) and third as Common expense ( only cost). Now 1st & 2 nd WBS, you have to have sales order linking with individual lint item, for third you will accumulate all the common expense till the period end then make a reposting of the same in desired proportion to both products WBS hierarchy
(This is if you want to have a track on the common expense as well.......like planning, budgeting & control)
After this reposting, run RA for individual billing element and hence you will all the complement detailing and control over Revenue and expense with respect to Product A and Product B individually.
2. If you don't want to maintain that kind of detailing the common expense and keep track of it through project, then have cost centers accordingly and make an assesment/ distribution with respect to expenses accumulated at those cost centers for the period to the respective WBS under each product. Then execute the period end processes for the project.
Or
You can try with have two more line items in the costing sheet as an overhead against common expenses with respect each product.
I hope this should help you.
Regards
Avisek Bhardwaj

Cost crentre creation date - norms

Hi,
Is it mandatory to create cost centers always with effect from the first date of the month or I can create the same on any date?
Suppose I have created a cost centre on 02.12.07 and have posted to a cost element for the first time on 09.12.07 and want to run to distribution cycle on 09.12.07 itself...will it work?
Do I need to follow any norms reagading dates for creation of cost elements...mean to say...if the cost element date is prior to creation of cost centre, will that give me trouble while settling..or the vice versa.
Regards,
AB

It controls two imp parameters
cost center will be active based on your from and to dates.
this will also used to control different parameters for different periods ex. different person responsible for different time frames.
no relation with cost elements. when u post document it will see wether cost element and cost are active on the perticular day.
distribution cycle for period end activity to allocate common expenses occured during the month. it will considere only the posting during the period specified.

What are the pros and cons of using a port system.

Hello All,
I'm a new explorer in the OS X UNIX world, and have installed macports, and, for the most part, succeeded in building and using a number of scientific applications.
I have noted a somewhat negative attitude by some on the use of port systems, while others seem quite content with them.
When making my decision to use macports, these "selling points" seemed desirable to me:
¤ Confines ported software to a private “sandbox” that keeps it from intermingling with your operating system and its vendor-supplied software to prevent them from becoming corrupted.
¤ Allows you to create pre-compiled binary installers of ported applications to quickly install software on remote computers without compiling from source code.
Especially the first point seems valuable, but am I deluding myself? Or, am I losing functionality/ flexibility? Or, am I just missing out on manually installing lots of dependents?
_I'm not trying to start a feud, here._
I'm just looking for some pointers (preferably well-substantiated) from those more knowledgeable than me, before I am any further committed to a choice I might later regret.
Thanks,
PWK

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For example, take the installation issue - all software gets installed into some specific directory which is great one one hand - fewer compatibility issues with conflicting versions from what Apple provide. The downside, though, is that nothing on your machine will use these versions unless/until you tweak them.
For example, maybe you want to install the MacPorts version of PHP, great, but the standard Apache won't use that, so you either need to install the MacPorts version of Apache, or tweak your Apache installation to use the non-standard PHP version.
Well, what about PATHs, I hear you ask? well, sure, you could prepend the MacPorts/fink/whatever directory to your $PATH, but then you always use the MacPorts/fink/whatever version of any installed software which might not be what you want.
This becomes more of an issue in a multi-server environment where you have multiple systems that all need tweaking/maintaining - nothing worse than setting up a new server by copying an existing installation, only to find that it depends on MacPorts/fink/whatever being installed.
The corollary to this is that these package managers often install ancillary software that you do not need, nor want. It might have improved since I last looked, but installing either MacPorts or fink, for example, installs whole new versions of perl, GNU tools (gzip/gunzip, etc.), curl, and more - they even install new copies of openssl/ssh.
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Unlike most GUI-based software, much open-source software uses compile-time options to configure the executable. Now the port installer might do a reasonable job of tweaking the installation, but it's not psychic so there will be cases where you end up with sub-optimal installations. Sure, they might work well enough, but that doesn't beat knowing what those options are up-front and building your own.
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(download>
./configure
make
sudo make install
it really isn't all that hard. Too often the port managers perpetuate the myth that Mac OS X is too different from other UNIX systems to work with the standard tools that everyone else knows.
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GET OFF MY LAWN! :-D

List of objects supported by iSetup on 12.0.6

Setup Object Name => Application Short Name
Aging Buckets =>AR
Approval Limits =>AR
Approval User Limits =>AR
Auto Accounting =>AR
Auto Cash Rule Sets =>AR
Collectors =>AR
Credit Management Auto Rules =>AR
Credit Management Automation Rules =>AR
Credit Management Check Lists =>AR
Credit Management Scores =>AR
Credit Management Scoring Model =>AR
Credit Management Setup Options =>AR
Customer Profile Classes =>AR
Customers =>AR
Invoice Grouping Rules =>AR
Invoicing Rules =>AR
Line Ordering Rules =>AR
Memo Lines =>AR
Receipt Classes and Methods =>AR
Receipt Sources =>AR
Receivables Activities =>AR
Receivables Payment Terms =>AR
Receivables System Options =>AR
Receivables Tax Codes and Rates =>AR
Receivables Territories =>AR
Receivables Transaction Types =>AR
Remit To Addresses =>AR
Statement Cycles =>AR
Tax Exemptions =>AR
Transaction Sources =>AR
All Profile Options =>AZ
Convert to Multi-Org Concurrent Program =>AZ
Personalizations =>AZ
Profile Options =>AZ
Profile Options Updates =>AZ
Template Files =>AZ
Template Translations =>AZ
Workflow Business Event System Objects =>AZ
XML Samples =>AZ
XML Schemas =>AZ
BOM Calendars =>BOM
Cost Groups =>BOM
Cost Sub Elements =>BOM
Cost Types =>BOM
Departments =>BOM
Items =>BOM
Workday Calendars =>BOM
Bank Account Uses =>CE
Bank Accounts =>CE
Cash Management System Parameters =>CE
Payment Documents =>CE
System Parameters =>CE
Transaction Codes =>CE
Areas =>EAM
EAM Areas =>EAM
EAM Parameters =>EAM
Conditions =>FEM
Factor Table Rules =>FEM
Mapping Rule =>FEM
Statistics Rule =>FEM
Compile All Flexfields =>FND
Concurrent Programs =>FND
Descriptive Flex Field =>FND
Descriptive Flexfields =>FND
Document Sequence Assignments =>FND
Document Sequence Categories =>FND
Document Sequences =>FND
Key Flex Field =>FND
Key Flexfields =>FND
Lookups =>FND
Menus =>FND
Printers =>FND
Request Groups =>FND
Responsibilities =>FND
Users =>FND
Value Set =>FND
Value Set Values =>FND
Workflow Definitions =>FND
Payment Process Profile =>IBY
ABC Assignment Groups and Item Assignments =>INV
ABC Class Assignments =>INV
ABC Classes =>INV
ABC Compliles =>INV
ATP Rules =>INV
Catalog Groups =>INV
Category Sets =>INV
Cycle Count Classes =>INV
Cycle Count Items =>INV
Cycle Countings =>INV
Cycle Counts =>INV
Default Category Sets =>INV
Economic Zones =>INV
Genealogy =>INV
Inter-Company Relationships =>INV
Inter-Company Transaction Flows =>INV
Inter-Location Transit Time =>INV
Inventory FlexFields =>INV
Inventory FlexFields Validation =>INV
Inventory Parameters =>INV
Inventory Parameters Update =>INV
Item Attribute Controls =>INV
Item Categories =>INV
Item Costs =>INV
Item Cross References =>INV
Item Locators =>INV
Item Status Codes =>INV
Item Statuses =>INV
Item SubInventories =>INV
Item Templates =>INV
Item Valid Categories =>INV
Material Statuses =>INV
Movement Statistics Parameters =>INV
Movement Statistics Validation Rules =>INV
Organization Access =>INV
Physical Inventories =>INV
Picking Rules =>INV
Planners =>INV
Serial Numbers =>INV
Shipping Networks =>INV
Shortage Parameters =>INV
Stock Locators =>INV
Subinventories =>INV
Transaction Reasons =>INV
UOM Item Specific Class Conversions =>INV
Unit of Measure, Conversions, and Classes =>INV
Units of Measure =>INV
Asset Book Controls =>OFA
Asset Categories =>OFA
Asset Depreciation Calendars =>OFA
Asset Keywords =>OFA
Asset Locations =>OFA
Asset Prorate Conventions =>OFA
Asset Quick Codes =>OFA
Asset System Controls =>OFA
Fiscal Years =>OFA
Credit Check Rules =>ONT
Credit Profiles =>ONT
Credit Usage Rule Set =>ONT
Credit Usage Rule Set Assignment =>ONT
Credit Usage Rule Set Assignments =>ONT
Credit Usage Rule Sets =>ONT
Holds =>ONT
Order Holds =>ONT
Order Import Sources =>ONT
Order Parameters =>ONT
Order Sources =>ONT
Transaction Types =>ONT
Transaction Types Update =>ONT
Absence Element =>PAY
Accrual Formula =>PAY
Accrual Plan =>PAY
Balance Attributes =>PAY
Balance Feeds =>PAY
Balance Types =>PAY
Carry Over Formula =>PAY
Defined Balances =>PAY
Element Classifications =>PAY
Element EIT =>PAY
Element Span Usages =>PAY
Element Type Usages =>PAY
Element Types =>PAY
Fast Formula =>PAY
Formula Result Rules =>PAY
Frequency Rules =>PAY
Grossup Balance Exclusions =>PAY
Input Values =>PAY
Iterative Rules =>PAY
Module =>PAY
Module Formula =>PAY
Module Type =>PAY
Payrolls =>PAY
Primary Balances =>PAY
Process =>PAY
Process Module =>PAY
Retro Component Usages =>PAY
Run Types =>PAY
Secondary Classifications =>PAY
Status Processing Rules =>PAY
Business Groups =>PER
Employees =>PER
Enable Multiple Security Groups =>PER
Grades =>PER
HR Locations Update =>PER
Inventory Organizations =>PER
Job Groups =>PER
Jobs =>PER
Locations =>PER
Operating Units =>PER
Organization Structure Elements (Hierarchies)=>PER
Organization Structure Versions =>PER
Organization Structures =>PER
Organizations =>PER
Position Structure Elements (Hierarchies) =>PER
Position Structure Versions =>PER
Position Structures =>PER
Positions =>PER
Salary Bases =>PER
Approval Assignments =>PO
Approval Groups =>PO
Approval Groups, Group Assignments and Rules =>PO
Approved Supplier Lists =>PO
Blanket Purchase Orders =>PO
Buyers =>PO
Document Types =>PO
Job Category Associations =>PO
Line Types =>PO
Purchasing Commodity Definitions =>PO
Purchasing Options =>PO
Purchasing Unique Identifiers =>PO
Quality Inspection Codes =>PO
Receiving Options =>PO
Requisition Templates =>PO
Budgetary Control Groups =>PSA
Transaction Codes =>PSA
Collection Elements =>QA
Collection Plans =>QA
Specifications =>QA
Price Formulas =>QP
Price Lists =>QP
Simple Price Modifiers =>QP
Aging Periods =>SQLAP
Bank Accounts =>SQLAP
Banks and Bank Accounts =>SQLAP
Distribution Sets =>SQLAP
Expense Templates =>SQLAP
Financials Options =>SQLAP
Invoice Approvals =>SQLAP
Invoice Tolerances =>SQLAP
Payables Options =>SQLAP
Payables Payment Terms =>SQLAP
Payables Tax Codes =>SQLAP
Payment Formats =>SQLAP
Reporting Entities =>SQLAP
Special Calendars =>SQLAP
Suppliers =>SQLAP
Tax Authority Suppliers =>SQLAP
Withholding Tax =>SQLAP
Account Code Combinations =>SQLGL
Accounting Calendars =>SQLGL
Accounting Setups =>SQLGL
Budget Organizations =>SQLGL
Budgets =>SQLGL
Chart Of Accounts =>SQLGL
Code Combination =>SQLGL
Code Combinations =>SQLGL
Conversion Rate Types =>SQLGL
Currencies =>SQLGL
Daily Rates =>SQLGL
Data Access Sets =>SQLGL
Encumbrance Types =>SQLGL
Journal Reversal Criteria =>SQLGL
Ledger Sets =>SQLGL
Set of Books =>SQLGL
Statistical Units of Measure =>SQLGL
Summary Templates =>SQLGL
WIP Accounting Classes =>WIP
Carriers,Methods,Carrier-ModeServ,Carrier-Org=>WSH
Freight Carriers =>WSH
Metadata =>XDO
Legal Entities =>XLE
Edited by: Mugunthan on May 5, 2009 11:13 AM

Customer API is not available on 12.0.6/12.1.1. Thanks for pointing out. I will correct it. If you require customer API, please log an enhancement request through SR.

Distribution of common expenses

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