Defining and Allocating Costs

Cost allocations move costs and revenues between cost types, cost centers, and cost objects. You can define as many allocations as you need. Each allocation consists of:

The allocation source establishes which costs must be allocated, and the allocation targets determine where the costs must be allocated. For example, an allocation source can be the costs for the Electricity and Heating cost type. You allocate all electricity and heating costs to three cost centers: Workshop, Production, and Sales. These cost centers are your allocation targets.

For each allocation source, you define an allocation level, a validity period, and a variant as grouping identifier. You can use a batch job to set filters to select allocation definitions and then run cost allocations automatically.

For each allocation target, you define an allocation base. The allocation base can be either static or dynamic.

The following table describes a sequence of tasks, with links to the topics that describe them.

To See
Set up allocation source and its targets. How to: Set Up Allocation Source and Targets
Set up various filters for dynamic allocation bases. Setting Filters for Dynamic Allocation Bases
See an example of how to define a static allocation. Scenario Example: Defining Static Allocations Based on Allocation Ratio
See an example of how to define a dynamic allocation. Scenario Example: Defining Dynamic Allocations Based on Items Sold

See Also

Setting Up Cost Accounting
Transferring and Posting Cost Entries
Accounting for Costs
Terminology in Cost Accounting
About Cost Accounting



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