Maintain complex allocation – A summary of the activity

Cost allocation is a periodic activity in which costs incurred by a cost center are allocated to other cost centers for which some services are rendered. For example, in a business organization, the purchase department is a cost center that has its own overheads such as salaries, communication expenses etc. However, the time and effort of this cost center is involved in procurement for other cost centers. Therefore, the costs incurred by this cost center are transferred or allocated to the cost centers serviced by it.

This activity allows you to maintain multiple allocations that can be used to allocate costs incurred by a source cost center to several target cost centers. You can allocate cost at the cost element level as well as at the cost center level.

This page allows you to modify or delete the records based on the status of the run number. Modification or deletion is possible, if the run number is either in “Active” status or “Fresh” status and if the allocation has not been processed for the run number.

Getting familiar with the pages inside