Iterative Processing of Allocation Cycles
Use
You can process allocation cycles iteratively or non-iteratively.
Features
Iteratively
When you process an allocation cycle iteratively, the result of one segment is then used by the other segments and processed further. The segments are processed dependent on each other. This means, for example, that an account that is used as the receiver in one segment can be used again in another segment as the sender. The system continues to process the segments until all senders are completely credited. The order of the segments has no bearing on the allocation results.
Example
The following graphic shows an allocation cycle with allocation segments that are processed iteratively. In this example, amounts are assessed/distributed from cost centers
100
(EDP) and
200
(Administration). As these cost centers also assess/distribute amounts between each other, the allocation cycle is processed iteratively:
Segment 1: The amounts of cost center 100 (EDP) are assessed/distributed to cost centers 200 (Administration), 300 (Sales), and 400 (Marketing).
Segment 2: The amounts of cost center 200 (from segment 1) are assessed/distributed to cost centers 100 (EDP), 300 (Sales), and 400 (Marketing).
Next, the amounts of cost center 100 from segment 2 is then assessed/distributed again to cost centers 200, 300, and 400 in segment 1. The allocation cycle is processed until the balance of all senders is zero.
When you process an allocation cycle iteratively, the system processes the segments until all senders have the balance 0 . If your allocation is defined so that two or more senders/receivers in a cycle completely allocate in a non-solvable relationship, the system will end processing and display an error. For more information, see Iterative Processing of Cycles
Non-iteratively
When you do not process an allocation cycle iteratively, each segment in the cycle is processed independently of the other segments in the cycle. The values allocated from previous segments are not used by the following segments in the allocation cycle. The order of the segments in the cycle is irrelevant to the allocation results.