Flya Kite FI CO Chapter (3)

In sap x each posting to a cost element is assigned

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Unformatted text preview: r an order x Data is subdivided between both cost centers and cost elements for analysis x Cost Centers = where x Cost Elements = which x Quarles: Flya Kite 41 Distributions A method of allocating primary costs x Primary cost element is the same in the sender and receiver x Cost element retains its character : same element in receiver as it was in sender x Sender cost centers and receiver cost centers are documented in the CO document x Quarles: Flya Kite 42 Distributions Identity of the cost in the Sender Cost Center Rent Expense $10,000 Cost center A060 Quarles: Flya Kite Primary Cost Element Distributed Rent Expense 78000000 Identity of the cost is the same in the Receiver Cost Centers Sales & Mktg Rent Exp Mfg $2,500 Rent Expense Adm $5,000 Rent Expense $2,500 Nature of cost (i.e., rent expense) comes across to receiver 43 Assessments A method of allocating both primary and secondary costs x Iterative or hierarchical x Primary costs are grouped together and transferred to receiver cost centers as a single secondary cost element x Sender cost centers and receiver cost centers are documented in the CO document x Quarles: Flya Kite 44 Assessments Secondary Cost Sender Cost Center Receiver Cost Centers Element Information Systems Costs = $100,000 (wages, paper, depreciation, etc) Cost center A070 Allocated IS costs 80000000 Sales & Mktg IS Assessment $25,000 Admin IS Assessment $25,000 Mfg IS Assessment $50,000 Nature of costs is unknown to receiver Quarle...
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