What is cost allocation base in SAP AP-COS - FIN Costing?

SAP Term: cost allocation base

• Component: AP-COS

• Component Name: FIN Costing

• Description: A financial or nonfinancial factor used as a basis for allocating indirect costs. Allocation bases are defined in overhead cost schemes together with the allocation rates.

Smart SAP Assistant

• Key Concepts: 
  Cost allocation base is a term used in SAP's Financial Costing (AP-COS FIN) component. It is a method of assigning costs to different cost objects, such as products, services, or customers. The cost allocation base is used to determine how much of the total cost should be allocated to each cost object. 
  
  How to use it: 
  In SAP's Financial Costing component, the cost allocation base is used to assign costs to different cost objects. This can be done by setting up a cost allocation structure in the system. The structure consists of a set of rules that define how the costs should be allocated. For example, a rule might specify that 50% of the total cost should be allocated to one cost object and the remaining 50% should be allocated to another cost object. 
  
  Tips & Tricks: 
  When setting up a cost allocation structure in SAP's Financial Costing component, it is important to consider how the costs should be allocated. It is also important to consider how the costs will be tracked over time. This will help ensure that the costs are allocated accurately and efficiently. 
  
  Related Information: 
  For more information about SAP's Financial Costing component and how to use it, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on using SAP's Financial Costing component.