- All Cost centers, depending on the original cost elements posted in them, have to allocate their cost as Fixed Cost or Depreciation.
- Sometimes it may be necessary to track these allocations with separate assessment cost elements so they can be used for instance to determine the origin of the cost for product Costing purpose (activity types / Cost component structure or PRG)
- This can be done creating several segments for each cost center or cost center group allocation
- But we may SIMPLIFY this allocation by unifying all the multiple allocation into a single segment, using an allocation structure.
- With this, we may also adopt standardized assessment cycles for all companies, treating equally the allocation of cost elements and cost centers to Reporting CC or to Production CC
For NON Reporting Allocation = Indirect Cost to Production: 2 Groups of CE are used:
- For Utilities (where we need to have the Variable component). It is based on Rules - Cost element Group XCS-ALL
=> Example allocation structure UP
For Allocation to Reporting CC the Allocation Structure was based on Rules - Cost element Group ZRCS-FC
=> Example allocation structure S1