What is sales point originated allocation method in SAP IS-OIL-PRA-REV - Revenue?

SAP Term: sales point originated allocation method

• Component: IS-OIL-PRA-REV

• Component Name: Revenue

• Description: The sales point originated allocation method provides a phased approach for allocating sales point volumes to termination points. The phased approach involves: determining network totals by marketing group, allocating sales over adjusted entitlements, and eliminating imbalances on a variety of criteria.

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• Key Concepts: 
  The Sales Point Originated Allocation Method is a component of the Revenue Management module in SAP IS-OIL-PRA-REV. This method is used to allocate revenue from sales points to the appropriate accounts. It is based on the principle of “first in, first out”, meaning that the revenue from the oldest sales point is allocated first. 
  
  How to use it: 
  To use the Sales Point Originated Allocation Method, you must first set up a sales point in SAP IS-OIL-PRA-REV. Once the sales point is set up, you can enter the revenue from each sale into the system. The system will then automatically allocate the revenue to the appropriate accounts based on the “first in, first out” principle. 
  
  Tips & Tricks: 
  It is important to keep track of your sales points and their associated revenue in order to ensure that the Sales Point Originated Allocation Method works correctly. Additionally, it is important to ensure that all sales points are set up correctly in order for the system to accurately allocate revenue. 
  
  Related Information: 
  For more information about setting up and using the Sales Point Originated Allocation Method, please refer to SAP’s documentation on Revenue Management. Additionally, you can contact your SAP support team for assistance with setting up and using this method.