What is target=actual activity allocation in SAP CO - Controlling?

SAP Term: target=actual activity allocation

• Component: CO

• Component Name: Controlling

• Description: Allocation technique whereby actual activities to be allocated are not entered directly but are calculated by the SAP system based on the planned activity input of the receivers. This input is multiplied by the operating rate of the receiving cost centers and activity types.

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• Key Concepts: 
  Target-actual activity allocation is a feature of SAP Controlling (CO) that allows users to compare the actual costs of activities with their planned costs. This comparison helps to identify any discrepancies between the two and take corrective action if necessary. The target-actual activity allocation also allows users to analyze the cost structure of activities and identify areas where cost savings can be made. 
  
  How to use it: 
  To use the target-actual activity allocation feature, users must first define the target costs for each activity. This can be done by entering the planned costs into the system. Once this is done, users can then enter the actual costs for each activity and compare them with the target costs. This comparison will help to identify any discrepancies between the two and take corrective action if necessary. 
  
  Tips & Tricks: 
  When using the target-actual activity allocation feature, it is important to ensure that all data is accurate and up-to-date. This will help to ensure that any discrepancies between the two are identified quickly and corrective action can be taken as soon as possible. Additionally, it is important to regularly review the target-actual activity allocation data to ensure that any changes in cost structure are identified and addressed accordingly. 
  
  Related Information: 
  For more information on how to use the target-actual activity allocation feature in SAP Controlling (CO), please refer to SAP Help documentation or contact your local SAP support team.