Symptom
You want to distribute only a certain amount of a cost center A to another cost center B. The remaining costs shall stay on cost center A.
Therefore you create a distribution rule for cost centers and maintain cost center A as sender cost center.
As receiver cost center you maintain a certain percentage for cost center B and for the rest you maintain cost center A also as receiver (i.e. 30% cost center B, 70% cost center A).
After executing the Overhead Distribution Run you notice that the run distributed the costs of your sender cost center A incorrectly:
- The total distribution amount is much higher than the cost amount of your sender cost center
- The run distributed 100% of the sender cost center A to receiver cost center B, instead of just a certain percentage (i.e. 30%)
- The run distributed another amount (higher than the total cost amount of the sender cost center A) to and from the sender cost center A
Environment
SAP Business ByDesign
Reproducing the Issue
Create Distribution Rule for Cost Centers
- In the Cost and Revenue workcenter navigate to the Allocation view and there to the Distribution Rules subview.
- Press New - Distribution Rule for Cost Centers.
- In the first step, maintain the Sender cost center. By default the following settings are maintained: Press Next to select the Receivers (step 2)
- Select Receiver Type: 2-Cost Centers
- Distribution Basis: All costs
- Select Cost Centers: Manually
- Distribution Factors: Fixed
- From the Available Cost Centers list, select the cost center that you want to distribute a certain percentage to, i.e. cost center B. And also select cost center A.
- Press Next (step 3).
- Enter the Distribution Factors for the selected cost centers, i.e. 0,3 for cost center B and 0,7 for cost center A.
- Press Next (step 4).
- Maintain a distribution rule ID XXX and description and, if you wish, the account determination group. Under Distribution Rule Assignment – Assign This Distribution Rule: Only to the current sender is maintained.
- Press Next [step 6 (step 5 is skipped automatically)] and Finish.
Execute Overhead Distribution Run
- In the Cost and Revenue workcenter navigate to the Periodic Tasks view and here to the Overhead Distribution subview.
- Press New-Distribution Run.
- Maintain a run description and the company. Maintain your new distribution rule XXX and maintain the respective period/year.
- Press Start Now to execute the run.
- After the run is finished navigate to the log results and there to the Postings tab.
- Here you notice that the costs of the sender cost center have been distributed incorrectly:
- The total distribution amount is much higher than the cost amount of your sender cost center
- The run distributed 100% of the sender cost center A to receiver cost center B, instead of just a certain percentage (i.e. 30%)
- The run distributed another amount (higher than the total cost amount of the sender cost center A) to and from the sender cost center A
Cause
Currently, overhead distribution only supports distribution 100% of the sender costs. Partial distribution is currently NOT supported.
The workaround of distributing a certain percentage to receiver cost center (i.e. 30%) and the rest back to the sender cost center (i.e. 70% does not work).
Instead, the overhead distribution run transfers 100% of the sender cost center A to the receiver cost center B. To achieve this it generates a posting of extra costs from the sender cost sender A back to the sender cost center A in order to achieve a 100% transfer of the costs to the receiver cost center B in a second posting.
Resolution
As only 100% overhead distribution is supported the following workaround can be used:
Use a dummy cost center and create two distribution rules. One for distributing a certain percentage from your sender cost center A to cost center B (i.e. 30%) and the dummy cost center C (70%). And a second one to distribute the costs of the dummy cost center C back to cost center A. Then execute two separate overhead distribution runs, first for your first and then for the second distribution rule. This way the 70% will be transferred back to your initial sender cost center.
Create a new cost center in your org structure or, alternatively, find a cost center for which no postings have been created.
A) Create the first distribution rule for cost centers - from cost center A to dummy cost center C
- In the Cost and Revenue workcenter navigate to the Allocation view and there to the Distribution Rules subview.
- Press New- Distribution Rule for Cost Centers.
- In the first step, maintain the Sender cost center. By default the following settings are maintained:Press Next to select the Receivers (step 2)
- Select Receiver Type: 2-Cost Centers
- Distribution Basis: All costs
- Select Cost Centers: Manually
- Distribution Factors: Fixed
- From the Available Cost Centers list, select the cost center that you want to distribute a certain percentage to, i.e. cost center B. And also select your dummy cost center C for the rest (i.e. 70%).
- Press Next (step 3).
- Enter the Distribution Factors for the selected cost centers, i.e. 0,3 for cost center B and 0,7 for the dummy cost center C.
- Press Next (step 4).
- Maintain a distribution rule ID XXX and description and, if you wish, the account determination group. Under Distribution Rule Assignment – Assign This Distribution Rule: Only to the current sender is maintained.
- Press Next [step 6 (step 5 is skipped automatically)] and Finish.
B) Create the second distribution rule for cost centers - from the dummy cost center C back to cost center A
- In the Cost and Revenue workcenter navigate to the Allocation view and there to the Distribution Rules subview.
- Press New- Distribution Rule for Cost Centers.
- In the first step, maintain the dummy cost center C as Sender cost center. By default the following settings are maintained:Press Next to select the Receivers (step 2)
- Select Receiver Type: 2-Cost Centers
- Distribution Basis: All costs
- Select Cost Centers: Manually
- Distribution Factors: Fixed
- From the Available Cost Centers list, select cost center A.
- Press Next (step 3).
- Enter the Distribution Factor 1 for the selected cost center.
- Press Next (step 4).
- Maintain a distribution rule ID YYY and description and, if you wish, the account determination group. Under Distribution Rule Assignment – Assign This Distribution Rule: Only to the current sender is maintained.
- Press Next [step 6 (step 5 is skipped automatically)] and Finish.
C) Execute two separate overhead distribution runs
- In the Cost and Revenue workcenter navigate to the Periodic Tasks view and here to the Overhead Distribution subview.
- Press New-Distribution Run.
- Maintain a run description and the company. Maintain the first distribution rule XXX and maintain the respective period/year.
- Press Start Now to execute the run.
- After the run is finished navigate to the log results and there to the Postings tab.
- Here you can see that a certain percentage has been transferred to cost center B (i.e. 30%) and the rest was transferred to the dummy cost center C (ie.70%).
- Now create a new run via New-Distribution Run.
- Maintain a run description and the company. Maintain the second distribution rule YYY and maintain the respective period/year.
- Press Start now to execute the run.
- After the run is finished navigate to the log results and there to the Postings tab.
- Here you can see that 100% of the costs of the dummy cost center C have been transferred to cost center A, so that, in the end, 70% of the initial costs of cost center A remain on cost center A.
Keywords
overhead distribution run; all costs , KBA , SRD-FIN-COR , Cost & Revenue , How To