Assessments & Distributions- impact on FI especially for Fin Statemens

[Former Member]

Hello Experts,

I understand that Distributions are used for allocating Primary Costs and Assessments are used for allocating both primary and Secondary costs.

Financial statements are produced using functional areas (mfg., slg., admin.). If costs are allocated using the distribution and cross functional areas, will the FI functional area agree with the functional area information in CO ?

We are on ECC 6.0 and have turned on the New G/L functionality.

What I am also trying to understand is that if there is an allocation between two cost centers belonging to different functional areas across 2 diff Profit Centers, will there be a FI document that I can see. In this case do we use assessments or distributions.

I was told that CO-FI reconciliation happens real time and we donot need to activate the reconciliation ledger.

Please advice.

[Former Member · Accepted solution]

Dear Andy, No, not at all. The distributions and assessments of Cost centers and Profit Centers do not affect the Cost of sales accounting Financials. Trust this helps much and if so, assign rewards! Regards, Ashok SINGH

[Former Member]

thank you.

[Former Member]

Hi Andy/Ashok

In ECC.0 New G/L, Allocation by distribution will generate FI Document, for distribution or assessment time we have to specify version 1.

The T.Codes: FAGLGA31 creation and FAGLGA35 execution.

The FI document will post only one Dumont for all the adjustments, but there shouldn't be any difference on the G/L account balance before and after Allocation.

As well for assessments we should not use secondary cost elements like CO.

Thanks in advance

Respectfully,

Vyas

[Former Member]

Dear Andy, Let me try to answer your other queries. Functional areas are not affected through the cross allocations in the controlling area. It is purely Finance related. Hence, there is no question of FI documents. Yes, New GL functionality takes care of splitting of documents profit center wise and business area wise and also segment wise, if it is alo included. Yes Reconciliation ledger has to be activated when there is multiple company codes in a single controlling area. Trust this helps much! Regards, Ashok SINGH