NEW GL Allocation Part 1

[Former Member]

With new GL functionality activation , profit center allocation has moved from classic PCA to new GL . Via New GL allocation we can allocate cost and revenues from one profit center to another

Purpose:

1)This document will present the distribution of costs from one profit center to other profit centers belonging to same co. code

2) This document will present the distribution of customer objects (coing blocks)

What is GL Allocation

Allocations enable you to periodically allocate amounts and quantities from sender objects to receiver objects. The two main types of allocations are assessment and distribution. You can allocate both plan and actual data. You perform the allocation using the allocation cycle function. You use allocation rules to determine how amounts and quantities should be allocated from sender object to receiver object.

Types of Allocation

Distribution: Amount and sender dimensions are distributed to receiver dimensions. The debit and credit postings for the distribution occur under the original account

Assessment: same principle that the distribution, but the debit and credit postings do not occur under the original account but under an assessment account

Scenario 1

The administrative amount EUR 100 booked to ABC_00001 Profit Center, this need to be allocated to respective profit centers i.e MNQ_0001 and XYZ_0001 in 50:50 ratio

FB03: Expense document

Month end running GL allocation to distribute the amount to the respective PC's

T code: FAGLGA35

Click on sender

Click on receiver

Amount gets distributed in 50:50 ratio between the profit centers

Display of document FB03. since its the distribution, not assessment therefore, the same account gets debit an credit

Scenario 2

Distribution of customer objects

In some cases there are some customer fields which are used and form part of posting, some posting happens via interfaces and some manually by user. Now there can be cases where user manually not able to enter the correct dimensions(coding block)while posting or when data posted via interfaces  default values gets updated on customer fields

At month end this need to be corrected which again can be done via new GL allocation

Like in below example, Product is one of the customer field which is included in enjoy transactions such as FB50.. At time of posting this field gets default value or wrong value, thus at month end the values from that product need to be distributed to the respective products. Allocation will be done in same manner as shown above for profit center

Display of senders and receiver in allocation cycle : FAGLGA33

Receiver tracing factor( in which proportion the distribution will happen)

Testing: Posted  document with product value 9999999999 for month 9 and then run the allocation to distribute the amount to other products

FB03

Amount 2500 EUR will get distributed from product 999999999 to other products as mention in cycle in their respective %

GL Allocation result

Receiver

amount 2500 EUR gets distributed in ratio of 20% to product 001230 , 30% to product 002334, 40% to product 009110 and 10% of product 009111

This is a simple scenario which distributes in fixed percentage, we can also have variable distribution with SKF and we can also have assessment using assessment GL account

New GL Allocation Part 2 will explain New GL allocation configuration rationale also how to add customer fields in the cycle.

Thanks

Pragya