SAP ERP Financials and FICO Handbook

1.10 FI-CCA 75
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Instead of entering a cost object, you assign a default cost center to G/L accounts
by assigning a cost center to a cost element.
Cost centers also get financial data through settlement of IOs, assessment, and
distribution of cost center.
173. How can you allocate depreciation expenses to multiple cost centers?
There are two ways to transfer depreciation cost to cost centers: (1) through default
cost center assignment to the asset master and (2) through default cost center
assignment to the primary depreciation cost element.
When an organization uses its assets for various cost centers, it is better to use
the second option. In the second option, you can assign a distribution cost center
as the default to the primary depreciation cost element. As a period-end process,
you can distribute depreciation expenses to various cost centers through cost center
distribution.
174. What are segments and cycles?
Cycles and segments are utilized by the SAP system to perform automated allocations,
such as distributions, assessments, and reposting (covered in Chapter 5) of
both planned and actual costs.
A cycle may be defined as a holding place for the various rules that
will define an automated allocation. Cycles are comprised of segments, and
each segment represents one set of data needed to complete the automated
allocation.
A segment consists of the following:
■ Allocation Characteristics—Identification of sending and receiving cost
centers.
■ Sender Values—The types of costs that will be allocated, whether they are
planned or actual amounts, and what percentage of total sender costs will be
allocated.
■ Receiver Values (Tracing Factors)—The basis for allocation, which can be
percentage, fixed amount, or SKF.