What is assignment path in SAP EPM-APP-ALLO - SAP Performance Management, Cost Allocation?

SAP Term: assignment path

• Component: EPM-APP-ALLO

• Component Name: SAP Performance Management, Cost Allocation

• Description: A rule specifying for a given combination of dimension values the condition, which driver to choose to disaggegate to which allocation objects; or which allocation object to directly assign it to. &Example& "Salaries in the cost center A are allocated to the activities, Shipping and Administration, using Head Count as a driver."

Smart SAP Assistant

• Key Concepts: 
  Assignment Paths are used in SAP Performance Management, Cost Allocation to define the flow of cost allocations. It is a set of rules that determine how costs are allocated from one cost object to another. The assignment path is used to define the order in which the cost objects are allocated and the percentage of costs that are allocated to each cost object. 
  
  How to use it: 
  To use an assignment path, you must first create a cost allocation plan. This plan defines the cost objects that will be allocated and the percentage of costs that will be allocated to each cost object. Once the plan is created, you can create an assignment path. The assignment path defines the order in which the cost objects are allocated and the percentage of costs that are allocated to each cost object. 
  
  Tips & Tricks: 
  When creating an assignment path, it is important to consider how the costs will be allocated between different cost objects. It is also important to consider how changes in one cost object will affect other cost objects. For example, if one cost object increases in value, it may affect other cost objects in the assignment path. 
  
  Related Information: 
  For more information on SAP Performance Management, Cost Allocation and Assignment Paths, please refer to the SAP Help Portal or contact your local SAP representative.