What is pool assignment equation in SAP EPM-IM-FPL - EPM IM Flying Profit&Loss (Leopard)?

SAP Term: pool assignment equation

• Component: EPM-IM-FPL

• Component Name: EPM IM Flying Profit&Loss (Leopard)

• Description: A formula that assigns a subset of records for each indirect cost / revenue, resource and activities element to a pool. Example Pool assignment equations may assign the indirect staff related costs for a specific grade of staff to the Labor pool. The equation for the activity element assigned to the resource consumption of activities carried out by those staff is also assigned to the same Labor pool.

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• Key Concepts: 
  Pool assignment equation is a feature of the SAP EPM-IM-FPL (EPM IM Flying Profit&Loss) module, also known as Leopard. It is used to assign costs and revenues to different cost pools in order to calculate the profitability of each pool. The equation is based on the principle of cost allocation, which states that costs should be allocated to the cost pools in proportion to their usage. 
  
  How to use it: 
  The pool assignment equation is used to assign costs and revenues to different cost pools. This is done by entering the cost and revenue amounts for each cost pool into the equation. The equation then calculates the profitability of each pool based on the cost and revenue amounts entered. 
  
  Tips & Tricks: 
  When using the pool assignment equation, it is important to ensure that all costs and revenues are accurately entered into the equation. This will ensure that the profitability of each pool is accurately calculated. Additionally, it is important to ensure that all costs and revenues are allocated in proportion to their usage, as this will ensure that the profitability of each pool is accurately calculated. 
  
  Related Information: 
  For more information on the SAP EPM-IM-FPL (EPM IM Flying Profit&Loss) module, please refer to the official SAP documentation. Additionally, for more information on cost allocation and how it can be used to calculate profitability, please refer to online resources such as Investopedia or other financial websites.