Allocation Integration (Planning, Commitment, and Actual) 

Purpose

Funds and functional areas are now considered when you allocate planned, commitment, and/or actual amounts using the following allocation cycles and segments:

·         Periodic reposting

·         Overhead

·         Distribution

·         Assessment

·         Indirect activity allocation

You can also enable internal orders and WBS elements as senders within these allocation cycles.

Prerequisites

You must run the report for activation of Fund Accounting objects (RKALPSCR) using transaction SE38 to enable funds and/or functional areas as available fields in allocation cycles and segments. Run the report, selecting the fields to be included and the allocations you want to allow the fields use as senders. Select plan and/or actual allocations, select the update run option, and execute the report.

You must run the report for activation of objects in allocations (RKALPSAC) using transaction SE38 to enable internal orders and/or WBS elements as senders in allocation cycles and segments. Run the report once for internal orders and once for WBS elements, selecting the allocations you want to allow the internal orders or WBS elements to use as senders. Select plan and/or actual allocations, select the update run option, and execute the report.

For more information on the configuration and processing of allocations, see the Controlling and Project Systemdocumentation.

Process Flow

When you activate fund accounting, allocations will provide for the movement of amounts from the sender(s) to the receiver(s), using fund(s) and functional area(s) (including groups) specified in the allocation segments.

Allocation fund and functional area results differ based on the type of allocation done. You can process the following distinctive types of allocations: 

·         Existing amounts

·         Created amounts

·         Overheads

The “Derive Fund/Function for Receiver" indicator in the allocation cycle header definition enables the fund and functional area of the receiver to be derived. If the indicator is set, fund and functional area for the receiver are derived through the derivation tool. If no fund or functional area is derived, the fund or functional area entered in the cycle for the receiver is used. If no fund or functional area is entered for the receiver, the fund or functional area from the sender is used.

For each type of allocation, you are able to change the way funds and functional areas are treated in various ways. Examples of these are shown below.

Existing Amounts Example

The following posted amounts are made to the sender and used for allocation:

   Cost Center 1000:

   $10,000 Fund A        Functional area 1

   $20,000  Fund B        Functional area 2

Existing Amounts Scenario 1 – Derive Fund/Functional Area for Receiver

You configure the cost center allocation cycle to allocate posted amounts, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the “Derive Fund/Function for Receiver” indicator is selected. Funds A and B, and functional areas 1 and 2, are entered for sender cost center 1000, with no fund or functional area entered for the receiver cost centers. The following allocation is performed (only amounts posted to funds A and B, functional areas 1 and 2, are allocated for the sender):

   Cost Center1000:

   ($10,000)      Fund A        Functional area 1

   ($20,000)      Fund B        Functional area 2

   Cost Center 2000 (20%):

    $2,000    Fund (derived for cost center 2000)    Functional area (derived for cost center 2000)

    $4,000   Fund (derived for cost center 2000)    Functional area (derived for cost center 2000)

   Cost Center 3000 (80%):

    $8,000    Fund (derived for cost center 3000)    Functional area (derived for cost center 3000)

$16,000   Fund (derived for cost center 3000)    Functional area (derived for cost center 3000)

Existing Amounts Scenario 2 – Fund/Functional Area Inherited for Receiver

You configure the cost center allocation cycle to allocate posted amounts, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the “Derive Fund/Function for Receiver” indicator is not set. Funds A and B, and functional areas 1 and 2, are entered for sender cost center 1000, with no fund or functional area entered for the receiver cost centers. The following allocation is performed (only amounts posted to funds A and B, functional areas 1 and 2, are allocated for the sender):

   Cost Center1000:

   ($10,000)      Fund A        Functional area 1

   ($20,000)      Fund B        Functional area 2

   Cost Center 2000 (20%):

    $  2,000       Fund A        Functional area 1

    $  4,000       Fund B        Functional area 2

   Cost Center 3000 (80%):

    $  8,000       Fund A        Functional area 1

    $16,000       Fund B        Functional area 2

Existing Amounts Scenario 3 – Fund/Functional Area Entered for Receiver

You configure the cost center allocation cycle to allocate posted amounts, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the “Derive Fund/Function for Receiver” indicator is not selected. Fund A and functional area 1 are entered for sender cost center 1000, with fund C and functional area 3 entered for the receiver cost centers. The following allocation is performed (only amounts posted to funds A and B, functional areas 1 and 2, are allocated for the sender):

   Cost Center 1000:

   ($10,000)      Fund A        Functional area 1

   ($20,000)      Fund B        Functional area 2

   Cost Center 2000 (20%):

    $  2,000       Fund C        Functional area 3

    $  4,000       Fund C        Functional area 3

   Cost Center 3000 (80%):

    $  8,000       Fund C        Functional area 3

    $16,000       Fund C        Functional area 3

Created Amounts Example

Fixed amounts or rates are used for the sender. Fund(s) and functional area(s) must be entered for the senders, to enable the following:

Fund(s) and functional area(s) are derived for the receiver(s).

Fund(s) and functional area(s) for the receiver(s) are inherited from the sender(s).

Fund(s) and functional area(s) are entered for the receiver(s).

Created Amounts Scenario 1 – Derive Fund/Functional Area for Receiver

You configure the cost center allocation cycle to allocate a fixed amount of $10,000, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the Derive Fund/Function for Receiver indicator is set. Fund A and functional area 1 are entered for sender cost center 1000, with no fund or functional area entered for the receiver cost centers. The following allocation is performed:

   Cost Center1000:

   ($10,000)      Fund A        Functional area 1

   Cost Center 2000 (20%):

    $2,000    Fund (derived for cost center 2000)    Functional area (derived for cost center 2000)

   Cost Center 3000 (80%):

    $8,000    Fund (derived for cost center 3000)    Functional area (derived for cost center 3000)

 

Created Amounts Scenario 2 – Fund/Functional Area Inherited for Receiver

You configure the cost center allocation cycle to allocate a fixed amount of $10,000, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the Derive Fund/Function for Receiver indicator is not set. Fund A and functional area 1 are entered for sender cost center 1000, with no fund or functional area entered for the receiver cost centers. The following allocation is performed:

   Cost Center1000:

   ($10,000)      Fund A        Functional area 1

   Cost Center 2000 (20%):

    $  2,000       Fund A        Functional area 1

   Cost Center 3000 (80%):

    $  8,000       Fund A        Functional area 1

Created Amounts Scenario 3 – Fund/Functional Area Entered for Receiver

You configure the cost center allocation cycle to allocate fixed amount of $10,000, with 20% to cost center 2000 and 80% to cost center 3000. For the allocation cycle, the Derive Fund/Function for Receiver indicator is not set. Fund A and functional area 1 are entered for sender cost center 1000, with fund C and functional area 3 entered for the receiver cost centers. The following allocation is performed:

   Cost Center1000:

   ($10,000)      Fund A        Functional area 1

   Cost Center 2000 (20%):

    $  2,000       Fund C        Functional area 3

   Cost Center 3000 (80%):

    $  8,000       Fund C        Functional area 3

Constraints

You are required to enter the funds and functional areas for the sender cost objects. Fund and functional area groups may be used to select the proper funds and functional areas.