Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

What is Define Credit in COPC?


What is the use of Define Credit inside SPRO under COPC?

Former Member
Former Member replied


You can find SAP text as given below:

Define Credits

Cost allocation is part of the process of determining overhead rates. If this leads to an object being debited with actual costs, another object in Cost Accounting must be credited at the same time. This can be either a cost center, order or a business process. This type of posting is recorded under a secondary cost element of cost element category 41 (overhead rates) in the SAPSystem.

When you define credits, you also specify which credit object is to be credited under which cost element when overhead is to be applied to an object in the actual.

You can also define what percentage of the overhead is to be allocated as fixed costs.


To define a credit, proceed as follows:

1. Choose New entries to create a new credit.

2. Enter a three-character key and a name for the new credit.

3. Select the row and choose "Detail".

You have the option of entering credit definitions that contain the following:

A validity period

An overhead cost element

The overhead cost element must have cost element category 41.

An origin group

You must specify an origin group if you want to see both the overhead cost element and the origin of the overhead in cost accounting

The percentage of the overhead to be allocated as fixed costs.

"*": The fixed portion of the costs is determined in the same way as the portion of fixed costs for the debit object.

A credit object

You can enter either a cost center or an order, or a business process as a credit object, but not more than one at the same time.

4. Save your entries.


If you want to maintain credits for all business areas, proceed as follows:

5. Choose Maintain accrual calculation.

6. Select the overhead structure

7. Choose Structure

8. Select a row in which a credit is displayed

9. Choose Goto -> Credit.

10. Enter the required controlling area.



0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question