What is periodic allocation in SAP (CO - Controlling)?

SAP Term: periodic allocation

• Component: CO

• Component Name: Controlling

• Description: An allocation method by which the costs collected on a cost center during a period are allocated according to allocation bases defined by the user, and not according to the exchange of activities between cost centers.

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• Key Concepts: 
  Periodic allocation is a feature of SAP Controlling (CO) that allows for the periodic distribution of costs and revenues across different cost centers or profit centers. It is used to allocate costs and revenues that are incurred or generated over a period of time, such as a month or a quarter. The periodic allocation process can be used to allocate costs and revenues from one cost center to another, or from one profit center to another. 
  
  How to use it: 
  To use periodic allocation in SAP Controlling, you must first define the allocation structure. This includes defining the source and target cost centers or profit centers, as well as the periodicity of the allocation. Once the structure is defined, you can then enter the data for the source cost center or profit center. This data will be used to calculate the amount of costs or revenues that will be allocated to each target cost center or profit center. Finally, you can run the periodic allocation process to distribute the costs and revenues across the target cost centers or profit centers. 
  
  Tips & Tricks: 
  When setting up periodic allocation in SAP Controlling, it is important to ensure that all of the data is accurate and up-to-date. This includes making sure that all of the source and target cost centers or profit centers are correctly defined, as well as ensuring that all of the data for each source cost center or profit center is accurate. Additionally, it is important to ensure that all of the periods for which allocations are being made are correctly defined. 
  
  Related Information: 
  For more information on how to use periodic allocation in SAP Controlling, please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_CONTROLLING/731/en-US.