Allocation Methods in SAP S4 Hana Controlling

In this course we will study about different types of allocation methods

Manual Reposting.

Manual Allocation.

Periodic Allocation Methods and their types.

Processing and creation of distribution methods.

Processing and creation of assessment methods.

Manual Reposting of Cost.

Manual reposting of cost is used to post the cost from one cost center to another if we posted in any cost center by mistake. We don’t need to reverse the financial document instead we will repost the cost from one cost center to another.

It will directly deduct from source cost center and add directly in the receiver cost center. Manual reporting is only used for primary cost elements.

Manual Allocation:

Reposting is only used for primary cost element re-posting but in allocation we can use secondary cost elements as well. In allocation value will be credited and posted in the receiver cost center.

Periodic Allocation Method Types :

Distribution:

Distribution is the allocation method where we distribute the primary cost element cost from send to receiver. Cost is credited from sender cost center to receiver directly and we can trace the source of sender cost center.

Assessment:

Assessment is the allocation method where we distribute the primary and secondary cost element cost from send to the receiver.