What is allocation in SAP FS-PER - SAP Profitability and Performance Management?

SAP Term: allocation

• Component: FS-PER

• Component Name: SAP Profitability and Performance Management

• Description: Function to perform direct and indirect allocations

Smart SAP Assistant

• Key Concepts: 
  Allocation is a process in SAP Profitability and Performance Management (FS-PER) that allows users to distribute costs and revenues across different cost objects. It is used to accurately measure the profitability of each cost object and to ensure that the costs and revenues are allocated in a fair and consistent manner. 
  
  How to use it: 
  In FS-PER, allocation is done by creating an allocation rule. This rule defines the source of the costs or revenues, the target cost objects, and the method of allocation. Once the rule is created, it can be used to automatically allocate costs or revenues from one cost object to another. 
  
  Tips & Tricks: 
  When creating an allocation rule, it is important to consider the different types of costs or revenues that need to be allocated. For example, some costs may need to be allocated on a fixed basis while others may need to be allocated on a variable basis. Additionally, it is important to consider how the costs or revenues will be allocated across different cost objects. 
  
  Related Information: 
  For more information about allocation in FS-PER, please refer to the SAP Help documentation. Additionally, there are several online resources available that provide detailed information about how to use allocation in FS-PER.