From the target costs of $500, the R/3 System posted $100 to cost center 4200 and $200 to each of the activity types 1420 and 1422. $500 of activity-independent costs are posted to cost center 4200 in the actual.

In the first splitting step, the R/3 System uses the target costs to split the activity-independent costs on activity types 1420 and 1422. $100 of activity-independent costs remain on cost center 4200.

In the second splitting step, the R/3 System uses equivalence rules to split this $100 on the activity types. In the example, the splitting occurs in equal portions on activity types 1420 and 1422.

The target costs are posted as described in the first section. In the actual, the R/3 System posted $300 to cost center 4200 and $200 directly to its activity type 1420.

In the first splitting step, the R/3 System ignores activity type 1420 of cost center 4200. This assumes that all costs on activity type 1420 of cost center 4200 were assigned directly. The R/3 System uses the target costs to split the $300 on activity type 1422. $100 of activity-independent costs remain on cost center 4200.

In the second splitting step, the R/3 System uses equivalence rules to split this $100 on the activity types. The R/3 System now considers also the directly assigned activity types. In the example, the splitting occurs in equal portions on activity types 1420 and 1422.