What is internal activity allocation in SAP CO - Controlling?

SAP Term: internal activity allocation

• Component: CO

• Component Name: Controlling

• Description: Method of internal cost allocation by which valued cost center activities allocation bases are allocated to cost receivers in acco rdance with the cause of the cost.

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• Key Concepts: 
  Internal activity allocation is a feature of SAP Controlling (CO) that allows for the allocation of costs and revenues to different cost centers or profit centers within an organization. This process is used to accurately track and report on the performance of each cost center or profit center. 
  
  How to use it: 
  Internal activity allocation is used to allocate costs and revenues from one cost center or profit center to another. This process is done by creating an internal activity allocation document in SAP Controlling. The document contains the source and target cost centers or profit centers, as well as the amount of costs or revenues to be allocated. Once the document is created, it can be posted in SAP Controlling, which will then update the financial records of each cost center or profit center accordingly. 
  
  Tips & Tricks: 
  When creating an internal activity allocation document, it is important to ensure that all of the information is accurate and up-to-date. Additionally, it is important to ensure that the source and target cost centers or profit centers are correctly identified in order to ensure that the correct amounts are allocated. 
  
  Related Information: 
  For more information on internal activity allocation in SAP Controlling, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_CONTROLLING/731/en-US.