What is distribution in SAP CO - Controlling?

SAP Term: distribution

• Component: CO

• Component Name: Controlling

• Description: A business transaction that allocates primary costs. The original cost element is retained in the receiver cost center. Information about the sender and the receiver is documented in the document.

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• Key Concepts: 
  Distribution in SAP CO Controlling is the process of allocating costs from one cost center to another. This process is used to accurately assign costs to the responsible cost centers and to ensure that the costs are allocated in a fair and equitable manner. 
  
  How to use it: 
  In SAP CO Controlling, distribution is done using the Distribution Cycle. This cycle consists of four steps: Planning, Allocation, Assessment, and Settlement. In the Planning step, the user defines the cost elements that will be distributed and the cost centers that will receive them. In the Allocation step, the user assigns costs to each cost center based on predetermined criteria. In the Assessment step, the user checks that all costs have been allocated correctly. Finally, in the Settlement step, the user confirms that all costs have been distributed correctly and closes out the cycle. 
  
  Tips & Tricks: 
  When setting up a Distribution Cycle in SAP CO Controlling, it is important to ensure that all cost elements are included in the cycle and that all cost centers are assigned correctly. Additionally, it is important to check that all costs have been allocated correctly before closing out the cycle. 
  
  Related Information: 
  For more information on Distribution in SAP CO Controlling, please refer to SAP Help documentation or contact your local SAP support team.