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# Costs Distribution

Hi,

I have to solve one issue related to Co. The scneario like this. Our company is having 3 plants and each plant having 10 machines and each machine produce some items. for this i created 3 production cost centers for 3 plants to collect all expenses for their plants. I created one cost center and cost element for salaries and i created one distribution cycle to distribute to salaries expenses to 3 production cost centers. after distribution of salaries expenses each production cc is having 3000 rupees now. and PM people treating one machine as one work center. so 10 machines or work centers are assingned to one cost centers. So each cost centers each having 10 work centers. here co people asking how we distribute this 3000 to 10 machines or work centers.

My doubt is how to distribute this amount to work centers , in co there is no work center concept. please guide in this scenario by step by step.

##### Sridhar Vasudevanreplied

The next step is to create an activity type called machine hours for the work center and cost center.

You need to do the cost center activity output planning through t-code KP26.

Let 's say the ten machines would work for 2000 hours each in a year, which means, 20,000 hours to be planned for each cost center.

Then derive the activity price calculation via KSPI. This will then automaticaly derive the plan price as Rs.3,000 / 20,000 hrs = 15 paise per hour.

Whenever the machine is used, you charge the recipient of the machine hour service with 15 paise per hour through KB21N. There are other ways of allocation depending on which object is recieving the service.

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