SAP: Functional Areas in Distributions & Assessments

sap_logoSAP allocations, or more precisely, Assessments and Distributions offer a lot of flexibility in their design.  So much so, that you can get lost in the details pretty quickly.  We recently discovered a flaw in our approach to distributing Gross Margin from non-sales profit centers.  The problem was that the distribution did not carry the Functional Area of the original postings.  In fact, it was posting the default functional area for revenue accounts (instead of using the FA of the Senders), thus skewing a couple of metrics.  Luckily, the fix turned out to be really simple, even if it had to repeated a couple hundred times 😉 .

Getting Functional Area to Follow Original FA on Allocations

In both 3KE5 (3KE2 for change) – Assessment and 4KE5 (4KE2 for change) – Distributions, you need to put a functional area or a functional area set on the Senders/Receivers tab in order to get the posting to the Receiver to carry the same functional area as the Sender.  Here’s the screenshot of 4KE5:

functional_area_distrib

In the example above, I used a set, FUNCT-ALL which includes all of our functional areas.  This will make sure that all functional areas are allocated, and that the Receiver postings get the same functional area as the original postings.  Originally, I thought leaving it blank would insure that all functional areas got allocated, and it did.  But the receiver postings had a blank functional area…unintended consequence.

Note that the functional area on the Receiver Tracing Factor tab indicates which functional areas will be included in determining the ratios for spread in aggregate.  It does not match up receiving functional areas with sending functional areas.  That’s kind of hard to explain without an example, so here goes:

fa_example

So in this example, we have 2 profit centers with posting in 3 different functional areas.  Profit center 101 has 75% of the balance.  Note that the Receiver functional areas are not the same as the Sender FA.  When the posting occurs, all of the receiver values are aggregated by profit center and the posting occurs proportionally on the Sender’s functional areas, 1050, in this case.  Of course, back to the original message in this post, if you don’t have a functional area or set specified on the Senders/Receivers tab, it will happen the same way, except the receivers’ postings won’t get a functional area at all.

So there we go.  Most folks probably have that figured out already, but clearly not everyone 😉

Cheers!

Byron

2 Responses to SAP: Functional Areas in Distributions & Assessments

  1. Tim May 11, 2010 at 12:32 pm #

    ok..sounds like most of your analysis is correct, however, i observed a few things…

    “The problem was that the distribution did not carry the Functional Area of the original postings. In fact, it wasn’t carrying a Functional Area at all and was getting the default functional area for revenue accounts”

    In the above statement your saying it wasnt carrying the functional area at all, i think what you mean to say here is that “the original functional area is not carried over to the receiver distributed amount, however, instead the default functional area is added”…So in fact the functional area is not blank…

    Also, i cant see where your getting the receiver profit center functional area values…that is unclear also in your example…are you saying as a result of a “test run” on the distribution without having checked the “functional area all”, that the amounts posted into the receivers look like that?

    Thanks,

    Tim

  2. Byron Bennett May 11, 2010 at 12:47 pm #

    Hi Tim,

    Yes, you’re right, I meant that it was posting the default Functional Area, and not using the FA of the Senders.

    Part 2 yes, that last part is be the posting. The profit centers on the Debit of the posting are coming from the top section, which represents the Tracing values, the FA there is due to having the FA populated in the FA field on the Senders/Receivers tab of the assessment setup, and the sender only had an FA of 1050, which gets posted.

    I should go back and draw some arrows on the image now that I have Snag-it 😉 But I’ll hold off until somebody actually needs this info.

    Thanks for the comments. I’ll update the post with the info you passed along!

    Cheers,
    Byron

Powered by WordPress. Designed by Woo Themes