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

SAP Term: distribution type

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Defines the object to which the inventory difference is distributed, e.g. production order, raw material or the manufactured products.

Smart SAP Assistant

• Key Concepts: 
  Distribution type is a feature of the Inventory Accounting component of SAP. It is used to define the way in which inventory costs are allocated to different cost objects. It is used to determine the cost of goods sold, inventory valuation, and other related calculations. 
  
  How to use it: 
  In order to use the distribution type feature, you must first define the cost objects that will be used for the allocation. This can be done in the Cost Object Master Data screen. Once the cost objects have been defined, you can then assign a distribution type to each cost object. This will determine how the costs are allocated among the different cost objects. 
  
  Tips & Tricks: 
  When assigning a distribution type to a cost object, it is important to consider how the costs will be allocated among the different cost objects. For example, if you are allocating costs between two cost objects, you may want to assign a higher percentage of costs to one cost object than the other. 
  
  Related Information: 
  For more information on how to use distribution types in SAP, please refer to the official SAP documentation on Inventory Accounting. Additionally, there are many online resources available that provide detailed tutorials and examples on how to use this feature.