Cost Distribution (Distribution)
Use
If you use the component Grouping, Pegging, Distribution (GPD) for project-based production processes, the costs and other value types of the replenishment elements are allocated to the pegged/source requirements that use the distribution component.
Based on the assignments made during pegging , you can distribute actual costs from the following:
Production orders
Purchase orders
Commitments and payments
Non Valuated GPD project stock
Work in process
You can use these values for reporting and additional period-end closing activities.
When used as a period-end closing activity for the previous month, cost distribution usually takes place at the beginning of the next month. For more information on all the pegging and distribution transactions, on the SAP Easy Access
menu, choose 
Project Systems
Financials
Period End Closing
Single Functions
Distribution
.
Caution
The distribution of commitments for future periods is always updated in the current period.
Prerequisites
You have assigned the work breakdown structure (WBS) elements whose material requirements should be grouped to the grouping WBS elements (for more information, see Assigning WBS Elements to a Grouping WBS Element ).
You have defined a distribution profilefor the grouping WBS elements in which you have defined the values to be distributed.
For more information, in Customizing, choose
Project System
Costs
Automatic and Periodic Allocations
Distribution
Maintain Distribution Profile.
You have executed requirements planning.
You have executed pegging for the appropriate replenishment elements.
Features
If you are using non-valuated stock in your project, goods movements for the project stock have no values, and the total costs remain with the grouping WBS elements even after the material has been withdrawn.
Distributing Values from Production Orders
Internal procurement is handled with production orders that are assigned to the grouping WBS element. The values from the production orders are distributed on the basis of totals records. The value distribution can contain the following:
Actual costs
Payments
Distributing Values from Purchase Orders
External procurement is handled with purchase orders that are assigned to the grouping WBS element. The data distribution can contain actual costs, payments and commitments.
Caution
If no purchase order is referenced, cost distribution does not takes place for costs that you manually post to a grouping WBS element.
After you distribute the costs for a specific period, you cannot execute distribution for preceding periods.