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Use

Target=actual activity allocation is a special form of indirect activity allocation for actual allocations. It enables you to determine an activity network on multiple levels and iteratively with the operating rate as the tracing factor.

Note Note

You can use target=actual activity allocation for cost centers and for business processes. The following example is applicable to cost centers and business processes.

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In target=actual activity allocation, the actual activity quantities to be allocated are not entered directly. Instead, they are calculated by the system using the plan activity inputs of the receivers, based on the operating rates of the cost centers receiving the activity type.

Note Note

Because target=actual allocation is intended only for allocating actual values, activity to be allocated with this method must be assigned different activity type categories for planning and actual postings.

You determine activity type categories for planning and actual allocation in the activity type master data (see: Activity Type Categories ).

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  • You must use activity type category 5 (target=actual activity allocation) for actual allocations.

  • You can use activity type categories 1, 2, or 3 for planning. Category 1 is most commonly used.

Features

Target=actual activity allocation is executed as follows.

  • The operating rate of the receiving cost center is determined using its own actual and plan activity.

  • From the operating rate and the plan activity input, the system calculates the target activity input for the receiving cost centers. This results in the target activity of the sender cost center, that is, the activity quantity which must actually be produced based on the operating rate adjustments.

  • The variable portion of the plan activity quantity is adjusted to the operating rate of the receiving costs center/activity type using target=actual activity allocation. It is then updated as a variable actual activity quantity. The fixed portion of the activity quantity is transferred from the plan to the actual during target=actual activity allocation.

    Note Note

    Planning must be fully reconciled at the planning level as a requirement for using this allocation method. Non-reconciled planning leads to incorrect operating rates, which, in turn, result in an incorrect allocation. For more information on reconciliation of planning, see: Plan Reconciliation .

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Example of Target=Actual Activity Allocation

Target=actual activity allocation is executed iteratively. This means that recursive activity relationships between cost centers are taken into account. Recursive activity relationships occur, for example, when a cost center takes activity from another cost center, to which it also provides activity.

Note Note

The system generally terminates target=actual allocation if extremely high operating rates are determined for a receiving cost center. For example, if the activity quantity was planned unrealistically for the cost center, or if an activity price was set manually, and an activity quantity of 1 was entered.

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Note Note

If you are working with transfer prices (parallel value flows), the target=actual activity allocation is executed in the leading valuation. The plan price used for allocation thus applies to all the valuations.

For more information on transfer prices, see the SAP Library under

  Financials   EC - Enterprise Controlling   Profit Center Accounting   Multiple Valuation Approaches/Transfer Prices  

  Financials   CO -Controlling   OverheadControlling   Overhead Controlling   Multiple Valuations  

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