Definition

  • All Cost centers, depending on the original cost elements posted in them, have to allocate their cost as Fixed Cost or Depreciation.  
  • It may be necessary to track these allocations with separate assessment cost elements to track the origin of costs (fixed costs or depreciation)
  • This can be done creating several segments for each cost center or cost center group allocation
  • But we can SIMPLIFY and merge all segments into one segment, using an allocation structure.
  • It helps to have standardized assessment cycles for all companies, treating equally the allocation of cost elements and cost centers to Indirect production cost centers to direct cost production cost centers or from cost centers to COPA.




Allocation structures in WP1

The Allocation Structure of Indirect production cost centers (PPPP-2xxx)  is based on the Cost element Group ZSOLV


Example: allocation structure CE >>


AS codeNameAssignmentSender GroupAssessment cost element
CE   EPRD1X Maintenance   10ZSO-FC_BON (star) 99422200 Maintenance CNP
20ZSO-STDEP (star)99423050 Maintenance AMO
40ZSOL-OTH2699422200 Maintenance CNP
50ZSO-IF16 (star)99423600 IFRS16 depreciation
60ZSO-BONUS (star)99422099 Grp-Leg contr empl



For Allocation to COPA  the Allocation Structure is based on the Cost element Group ZSOLV and is used with the corresponding PA transfer structure


Example: allocation structure that is used in COPA cycles:  C1 >>


AS codeNameAssignmentSender GroupAssessment cost element
C1 Site allocation  10ZSO-FC_BON (star)99429910 COPA Assessment CNP
20ZSO-STDEP (star)99429920 COPA Assessment AMO
30ZSOL-OTH2899429910 COPA Assessment CNP
40ZSO-IF16 (star)99429921 R25860 Period depreciation
50ZSO-BONUS (star)99429941 BONUS





(star) The following groups are a grouping of groups of the hierarchy ZSOLV: 

  • ZSO-FC_BON -  Fixed Cost w/o Bonus/PSU

  • ZSO-STDEP - Standard dep. outside IFRS16
  • ZSO-IF16 - Total IFRS16 depreciation
  • ZSO-BONUS - Bonus & PSU