What is distribution key in SAP CO - Controlling?

SAP Term: distribution key

• Component: CO

• Component Name: Controlling

• Description: A tool used to distribute annual planned values over the planning periods in accordance with certain rules.

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• Key Concepts: 
  Distribution key is a tool used in CO Controlling to assign costs to cost centers. It is used to divide costs among different cost centers in a specific ratio. The distribution key is used to assign costs to cost centers in a way that reflects the actual distribution of costs. 
  
  How to use it: 
  To use the distribution key, first create a cost center and assign it a distribution key. Then, enter the cost center and the distribution key into the system. The system will then automatically assign the costs to the cost centers according to the ratio specified in the distribution key. 
  
  Tips & Tricks: 
  When creating a distribution key, make sure that the ratio specified in the distribution key accurately reflects the actual distribution of costs. This will ensure that costs are accurately assigned to cost centers. 
  
  Related Information: 
  The distribution key is closely related to other CO Controlling tools such as cost elements and cost objects. Cost elements are used to classify costs, while cost objects are used to assign costs to specific activities or projects.