Assessment

Use

Assessment is a method of allocating primary and secondary costs in Cost Center Accounting and Activity-Based Costing. The following information is passed on to the receivers:

The original cost elements are assigned cumulatively, or in groups, to assessment (secondary) cost elements. The original cost elements are not recorded on the receivers.

Sender and receiver information (sender cost center, receiver cost center, or business process) appears in the Controlling (CO) document.

Allocation through assessment is useful when the composition of the costs is unimportant for the receiver. For example, the assessment of cafeteria costs to a cost center need not be broken down further.

You can use the information system to analyze the assessment results by assessment cost element according to sender and receiver relationships.

Note Note

In periodic reposting , distribution , and assessment, the system writes line items for each sender and receiver. You cannot restrict this process. You can reverse the line items if you repeat the periodic allocation within a given period. The posting date of the actual allocation is always the last day of a calendar month. The posting date of the plan allocation is always the first day of a calendar month.

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You cannot allocate consumption quantities using assessment. To allocate activity quantities, you must use indirect activity allocation.

End of the note.

Features

For allocations using assessment, you can summarize all the cost elements into one assessment cost element . When you carry out the assessment, the system allocates all the costs to be allocated from the sender using this cost element. However, this method does not store any information on the receiver, regarding the composition of the costs.

Alternatively, you can use an allocation structure to define which cost elements are to be allocated under which assessment cost elements. You can assign individual cost elements, cost element groups or intervals to an assessment cost element. The allocation structure can be stored during segment maintenance.

Note Note

Until now, if you wanted information regarding the composition of costs at a summarized level, you needed to create a large number of segments. These segments only differed in the assignment of the allocation cost elements to the assessment cost elements. Allocation structures enable you to reduce maintenance and the runtime of the cycle.

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Company A has 10 subsidiaries in Germany. The primary costs of each subsidiary are to be allocated at period end using its own assessment cost element. Cost centers are summarized across all the subsidiaries (for example, all cafeterias of the subsidiaries). However, although the sender and receiver remain the same, an individual assessment cost element is to be used for each subsidiary.

Until now, you needed to create a corresponding segment for each cost element that was assigned to an individual assessment cost element.

End of the note.

Segment	Sender	Receiver	Cost element	Assessment cost element
Segment 1	Cost center 3500 Purchasing	Cost center 3600 Cafeteria	Cost element 415000	Assessment cost element 510000
Segment 2	Cost center 3500 Purchasing	Cost center 3600 Cafeteria	Cost element 430000	Assessment cost element 520000

You can now summarize the primary cost elements 415000, 430000 in an allocation structure, as well as their assignments to assessment cost elements. This reduces the number of segments required.

Segment

Sender

Receiver

Allocation structure

Segment 1

Cost center 3500 Purchasing

Cost center 3600 Cafeteria

Allocation structure A1 (415000 510000 430000 520000 ... ... )

For more information, see the Implementation Guide (IMG) for Cost Center Accounting or Activity-Based Costing, under Actual Postings Period End Closing Assessment Create Assessment Cost Elements or Maintain Allocation Templates or under Planning Allocations Assessment Create Assessment Cost Elements or. Maintain Allocation Structures .

Processing Cycles

Creating or Changing Cycles

Executing Periodic Repostings or Periodic Allocations Online

Displaying the Cycle Overview