What is 'overhead allocation' in SAP SRD-FIN-COR - FIN-Cost and Revenue?

overhead allocation - Overview

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: The process of allocating overhead costs between cost centers or from cost centers to cost objects.

overhead allocation - Details

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  Key Concepts: 
  Overhead allocation is a process in SAP's SRD-FIN-COR FIN-Cost and Revenue Accounting component that allows for the distribution of overhead costs to cost objects. This process is used to assign a portion of the overhead costs to each cost object, such as a product or service, based on the amount of resources used by each cost object. 
  
  How to use it: 
  In order to use overhead allocation in SAP, you must first define the overhead cost elements that will be allocated. This can be done by creating a cost element group and assigning the appropriate cost elements to it. Once the cost elements have been defined, you can then create an overhead allocation structure which will define how the overhead costs will be distributed among the cost objects. Finally, you can run the overhead allocation process which will distribute the overhead costs according to the structure that was created. 
  
  Tips & Tricks: 
  When creating an overhead allocation structure, it is important to consider how the costs should be distributed among the cost objects. For example, if one cost object uses more resources than another, it may be beneficial to allocate more of the overhead costs to that cost object. Additionally, it is important to ensure that all of the necessary cost elements are included in the structure in order for the process to