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 results of one allocation segment are used by the other allocation segments and processed further. The allocation segments are processed dependent on each other. For example, an account serving as receiver in one allocation segment can serve as sender in another allocation segment. The system continues to process the allocation segments until all senders are completely credited. The order of the allocation segments has no bearing on the allocation results.

The following graphic shows an allocation cycle with allocation segments that are processed iteratively. In this example, you allocate amounts from profit centers 100 (EDP) and 200 (Administration). Since these profit centers also allocate or distribute amounts to each other, the allocation cycle is processed iteratively:

 Allocation segment 1: The amounts of profit center 100 (EDP) are allocated/distributed to profit centers 200 (Administration), 300 (Sales), and 400 (Marketing).

Allocation segment 2:  The amounts of profit center 200 (from allocation segment 1) are allocated/distributed to profit centers 100 (EDP), 300 (Sales), and 400 (Marketing).

The balance of profit center 100 from allocation segment 2 is then allocated/distributed again to profit centers 200, 300, and 400 in allocation segment 1. The allocation cycle is processed until the balance of all senders is zero.

When you process the allocation segments of an allocation cycle iteratively, the system processes the allocation segments until all senders have the balance zero. If your allocation is defined so that two or more senders/receivers in a cycle completely allocate in a non-solvable relationship, the system ends processing and displays an error.

Non-iteratively

When you do not process an allocation cycle iteratively, each allocation segment in the cycle is processed independently of the other allocation segments in the cycle.

The values allocated from previous allocation segments are not used in the processing of subsequent allocation segments in a cycle.

The order of the allocation segments in the cycle has no bearing on the results of the allocation.