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Cost Center Allocation

Business Scenario

Cost Center : C1 ( Canteen)

Cost Center : C2

All the FI Postings related to Canteen will be sent to Cost Center C1

From C1 90% of the amount will be allocated to C2 and 10% will be retained in C1


1st May 2010 --- $100 Posted in FI with Cost Center C1

30th May 2010 -- Allocation happened

Now after the Allocation happens, C1 will have an amount of $10 and C2 will have $90


1st June 2010 -- $200 Posted in FI with Cost Center C1

So now C1 will contain $200 + $10 ( Portion from May month)


1) Whether 90% of $210 will be sent to C2 or 90% of $200 will be sent C2?

2) How the SAP system knows whether $210 or $200 needs to be allocated to C2?



Step 2: Allocation Run happens for $200 PLUS the $10. C1 Retains 10% of $210 i.e. $21 and the balance will be sent to C2.

That one you got wrong.

Allocation run happens for 300 (200+100) --> cumulative share of C2 is 270, but 90 of those are already on C2 from period 1 --> 180 to be allocated in period 2.

In your scenario, cumulative or not cumulative lead to the same result, only the backgroung logic is different. In other scenarios, they could give different results.

The only reason I mentioned the two settings is that Eli seemed to have a different understanding of a cumulative run.

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