Real Scenario

[Former Member]

Hi,

I need to know the difference between the Business Scenario

as far as Assessment and Distribution is concerned?

I know the basic difference between the two but I want to know

the difference as far as the real life business scenario is concerned.

Thanks

Manish

[Former Member · Accepted solution]

Hi!

Assessment Ex. :

Suppose you want to distribute the cost of QA / QC in any pharma plant to all resources like Inception, Mixing, Sterilising, Packing then here distribution of cost to all resources (all different cost centers where costs are booked like Inception, Strilization, Mixing...) are done through Assessment Cycle. As this activity is done internally within CO module with the effect of secondary cost element (category 42) and SKF and the existence of primary cost elements are removed.

Distribution Ex. :

IT services are used by all concern dept.s of the organization. So, this cost can be allocated through distribution cycle.

Here sender cost center is credited, and the receiving cost center charged, under the original cost element.

Hope it will clear to you. Pls get back for further query.

Thanks & Regards,

Taral Patel

[Former Member · Accepted solution]

Hi

Thanks for the reply.

By QA do you mean Quality Assurance?

Thanks!

Manish

[Former Member · Accepted solution]

Hi!

Your understanding is correct. QA means Quality assurance which is seperate activity to . Encourage if useful.

Pls get back for further query.

Thanks & Regards,

Taral Patel

[Former Member · Accepted solution]

Thanks for that!!

[Former Member]

Dear Manish,

Business scenario is same for both , assessment and distribution.

Assessment and Distribution cycles are two different ways of allocating the OH/Expenses.

Santosh

[Former Member]

Hi Santosh,

Thanks for the reply.

I know that they are the two ways of allocating the costs and while Assessment uses secondary cost element and distribution uses primary cost element for the cost transfer.

But I need to know ,given the business scenario how I can decide whether I need to use "Assessment" or "Distribution"

Thanks

Manish