What is distribution basis in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: distribution basis

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Defines the basis by which to distribute fractions of the inventory differences, e.g. actual costs, target costs or the difference of target costs and actual costs.

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• Key Concepts: 
  Distribution basis is a feature of the Inventory Accounting component of SAP that allows users to assign a specific value to each item in their inventory. This value is then used to calculate the cost of goods sold (COGS) and other related expenses. The distribution basis can be set up as either a fixed or variable amount, depending on the user's needs. 
  
  How to use it: 
  To set up a distribution basis in SAP, users must first create an inventory account in the system. Once this is done, they can assign a value to each item in their inventory. This value will then be used to calculate the COGS and other related expenses. The user can also choose to set up a fixed or variable distribution basis, depending on their needs. 
  
  Tips & Tricks: 
  When setting up a distribution basis in SAP, it is important to ensure that the values assigned to each item are accurate and up-to-date. This will help ensure that the COGS and other related expenses are calculated correctly. Additionally, it is important to keep track of any changes made to the distribution basis over time, as this could affect the accuracy of the calculations. 
  
  Related Information: 
  For more information on setting up a distribution basis in SAP, please refer to the official SAP documentation on Inventory Accounting. Additionally, there are many online resources available that provide detailed instructions on how to set up and manage a distribution basis in SAP.