Assessment VS Distribution............

Please explain details on this topic

Phil (Philippe) Dekyvere

Assessments and Distributions are commonly used in the Cost controlling area of SAP. They can also be
found in Profit Center Accounting and Profitability Accounting.

Assessments are costs that have been accumulated on a particular cost object, that need to be re-
assessed to another object or type of object.
The assessment usually takes cost collected on a Primary cost element and re-assesses them to
Secondary Cost elements.
For example, Total Electricity costs collected in total, may be re-assessed to Energy Cost Centers of
individual departments depending on a statistical key figure like Square footage of each Department for
example. This is a typical example in Cost Center Controlling.

Distributions, are costs recognized within a cost hierarchy at a certain level, but needing to be re-
distributed to a lower or different level according to a distribution key.
Costs for a Marketing campaign may have been directly allocated to a complete product group or brand,
Distribution allows you to distribute this cost to each individual product within that Brand based on last
periods actual sales figures for example. This is a typical example in Profitability Analysis

Ravi Kumar Kotni

In addition to the comments made by phil, The distributions can be performed for only primary cost
elements and Assessments can be performed to all. It depends on business scenario where should we
use distribution or assessments

Prasad Neelisetty
Further, The main difference between Distribution & Assessment is that the way the costs are
transferred from SENDER to RECIVER.
In Distribution, The Original Cost Carrier (Cost Element) is retained where as in Assessment it will be
thru an Assessment Cost Element.
Hence the key to decide is in what detail the costs need to be reported/analyzed at Receiver.

Venkataswamy Bathini
With addition to the Ravikumar the major difference between the Assessments and Distribution is, If you
use distribution by the allocation purpose, in the receiver side you can saw the allocated amount on by
the original cost element but if you are allocation the cost by using assessments, in the receiver side the
allocated amount you can saw only assessment cost element category 43 only.

This the standard sap functionality only compare to all accounting packages.

Follow Vijayananda
In addition to the comments made by all others above, one of the key business reason is assessment will
suffice the purpose of the management reporting without effecting general ledger and books of
accounts (GL). Where as distributions will suffice management reporting plus update the general ledger
and books of accounts. Therefore based on the business reasons and legal requirement assessment or
distribution would be suggested.
Follow Ramesh
Ramesh Ramaswamy Hi Anand
A point of correction-distribution or assessments do not touch the G/L postings they take place within
CO. Distribution , as mentioned earlier, would be showing Dr/Cr against the primary cost postings
whereas with assessments, the debits (for e.g.) to a cost center could be with primary cost elements
but the credits would be on the assessment C.E.
Follow Rene
Rene Verbeek In ECC 6.0 my dear friends, with full integration activated, it does post in G/L right?
Martin Jakobsson Rene>>
Yes