DISTRIBUTION =========== Distribution was created for transfer primary costs from a sender cost center to receiving

controlling objects. During distribution, only cost centers or business process can be used as sender. A distribution receiver can
be a cost center, WBS element, internal order, cost object, or a business process. You can restrict the number of receiver
categories in customizing. Primary Postings (such as, energy costs) are collected on a cost center, and allocated at the end of
the period by means of the user-defined key. You can only distribute primary costs. During this process, the original cost
element remains the same. Line items are posted for the sender as well as for the receiver, enabling the allocation to be
recorded exactly. You can reverse distributions as often as required. You use the Cycle-Segment method to define senderreceiver relationships. PERIODIC REPOSTING ================= Differences between periodic reposting and distribution
are due to information content and performance. For periodic reposting, no separate credit record is written on the sender for
the cost element in the summary report. Instead, the totals record for the cost element is reduced on the debit side, which
means that the original debit amount can no longer be checked there (u201Cunclean creditu201D). However, during
distribution, the system writes a totals record for the credit (u201Cclean creditu201D). The information on the receiver is the
same for periodic reposting and distribution (u201Cclean debitu201D). Compared with periodic reposting, during distribution,
the system also updates the partner in the totals record for the sender. This means that the partner can be displayed in the
information system on the totals record level. As fewer totals records are written during periodic reposting, performance is
better than during distribution. ASSESSMENT =========== Assessment was created to transfer primary and secondary costs
from a sender cost center to receiving controlling objects. During assessment, cost center or business processes can be used
as senders. The receivers for an assessment can be a cost center, WBS element, internal order, cost object, or a business
process. You can restrict the number of receiver categories in customizing. Primary and secondary posting are allocated at the
end of the period by the user-defined key. During assessment, the original cost elements are summarized into assessment cost
elements (secondary cost element category = 42). As the system writes fewer total records, the assessment has a better
performance than periodic reposting and distribution. The system does not display the original cost elements in the receivers.
Therefore, assessment is useful if the cost drilldown for the receiver is not important. Similar to distribution, the partner is
updated in the totals record during distribution You can reverse assessments as often as required. You use the Cycle-Segment
method to define sender-receiver relationships.
The main difference between Assessment cycle and Distribution cycle is - in case of Assessment we use secondary cost
element.
An example to highlight the difference is as under:
Common Costs incurred for example for Factory Cafeteria are booked to Cost Center - Z using primary cost element 4000100
0 (Amount INR 100). During period end closing the costs are be allocated to Cost Centers A, B and C in the ratio of 50%, 20%
and 30% respectively.
Distribution:
Sender Rule: Posted Amounts
Sender Cost Center - Z
Sender Cost Element - 400100
Receiver Cost Centers are A, B and C
In Receiving Tracing factor - we specify the percentages for each cost center.
When distribution cycle is executed. Cost Center Z will be credited by INR 100 and Cost Center A, B and C will be debited with
50, 20 and 30. All the postings will be made using the primary cost element 40001000.
Assessment:
<b>Assessment Cost Element: 94200100</b>.
Sender Rule: Posted Amounts

Sender Cost Center - Z

Sender Cost Element - 40001000
Receiver Cost Centers are A, B and C
In Receiving Tracing factor - we specify the percentages for each cost center.
When assessment cycle is executed. Cost Center Z will be credited by INR 100 and Cost Center A, B and C will be debited with
50, 20 and 30.
In Assessment all the postings will be made using Assessment Cost Element - which is secondary cost element.
The advantage of Assessment is the original postings made to the primary cost element are retained.
In this example, if we execute a report for Cost Center Z for Cost Element 40001000, we can still display the values. If we
execute the report for cost element 40001000 and 94200100 together, the value will be zero.