What is 'primary cost distribution' in SAP SRD-FIN-COR - FIN-Cost and Revenue?

primary cost distribution - Overview

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: Overhead distribution using the original account.

primary cost distribution - Details

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  Key Concepts: 
  Primary cost distribution is a feature of SAP's SRD-FIN-COR FIN-Cost and Revenue Accounting component. It is used to allocate costs to different cost objects, such as cost centers, orders, and projects. The primary cost distribution process is based on the principle of cost object-oriented accounting. This means that the costs are allocated to the cost objects in proportion to their usage of the resources. 
  
  How to use it: 
  Primary cost distribution can be used to allocate costs to different cost objects in SAP. To do this, you must first define the cost objects in the system. Then, you must define the cost elements that will be used for the primary cost distribution. Finally, you must set up the primary cost distribution rules for each cost element. These rules determine how the costs will be allocated to each cost object. 
  
  Tips & Tricks: 
  When setting up primary cost distribution rules, it is important to consider how the costs will be allocated across different cost objects. For example, if you are allocating costs for a project, you may want to allocate more of the costs to the project than to other cost objects. Additionally, it is important to ensure that all of the costs are allocated correctly so that they can be accurately tracked and reported on. 
  
  Related Information: 
  For more information about primary cost