Indirect Activity Allocation

Use
You can use indirect activity allocations to automatically allocate planned and actual activities. You can specify keys to allocate activity, which is not possible when you use manual activity input in the plan or actual activity allocation. In addition, if calculating the sender activity quantities involves too much time or expense, the R/3 System can determine the activity quantity inversely based on the activity of the receivers.

If you execute indirect activity allocation without completing planning for the combination cost center/activity type, you must activate the actual price indicator in the activity type master data. A special type of indirect activity allocation for actual allocation is the plan=actual activity allocation. Differenct than other types of indirect activity allocation, the plan=actual activity allocation allows for a multiple level activity network to be determined iteritavely with the operating rate as the tracing factor.

Features
You can choose between two methods of indirect activity allocation, depending on the activity types category. These methods are determined for each segment and can be combined in one cycle.

Activity quantities can be determined on the sender object

For certain activity types you can determine the total activity quantity for each sender. These are category 3 activity types, Manual entry, indirect allocation. Using indirect activity allocation, these posted activity quantities are distributed by the senders among the receivers defined in the segment according to their allocation bases. The corresponding segment must use the sender rule Posted quantities. Any receiver rule can be used, with the exception of Fixed quantities (see: Sender and Receiver Rules for Periodic Repostings/Allocations).

Indirect Activity Allocation

Use
Indirect activity allocation automatically assigns activity quantities in plan and actual. Unlike manual planning or actual activity allocation, you define keys to allocate the activities. In addition, if calculating the sender activity quantities involves too much time or expense, the R/3 System can determine this value inversely based on the receiver activity quantities.

Target=actual allocation is a special form of indirect activity allocation in actual. In contrast with the other forms of indirect activity allocation, target=actual allocation allows you to create an iterative activity input network with multiple levels using the operating rate as the tracing factor.

Features
You may use two approaches in indirect activity allocation, depending on the activity category. You define these approaches using segments, which you can combine in cycles. Posting activity quantities on the sender object allowed Certain activity types allow you to determine the total activity provided per sender. These activity types belong to category 3 (manual entry, indirect allocation). Indirect activity allocation assigns the activity quantity from the sender to the receivers defined in the segment according to the specified tracing factor. The segment must use the sender rule Posted quantities. Any receiver rule can be used with the exception of Fixed quantities. Posting activity quantities is difficult or impossible For those activity types where it is impractical to calculate activity quantities, the R/3 System determines the activity quantity based on: o o Receiver tracing factors with weightings defined for each sender Segment definition (Fixed quantities) These activity types belong to category 2 (indirect entry, indirect allocation). The segment must use the sender rule Quantities determined indirectly with any receiver rule or the sender/receiver rule Fixed quantities. If you use Quantities determined indirectly, the weightings described above are defined using Sender values.

Example
The numbers of orders executed by receiver processes (inland purchases) 1 and 2 (foreign purchases) are given in the illustration; inland 6000 orders, foreign 4000 orders. Calculation of the consumed activity quantities: because the processing of the foreign orders is expensive, the system assigns it a weighted factor of 2. The activity quantity is calculated from sender value 0,1 h (base processing time per order), weighted factor and consumed activity (bottom, left part of the illustration). Cost calculations: the price per hour is the result of dividing the total costs by the activity quantity. This value is then multiplied with the consumes activity. (600 * 60.- = 36,000.- , or 800 * 60.- = 48,000.-).

For more information, see: Definition of Period-Based Re-postings or Period-Based Allocations Executing Period-Based Re-postings or Period-Based Allocations On-line Senders and Receivers in Indirect Activity Allocation Activity Quantity Valuation Requirements for Indirect Activity Allocation Target=Actual Activity Allocation

Examples for Indirect Activity Allocation

Activity types of category 3, "Manual entry, indirect allocation"

The cost center "Quality control" produces 1000 hours of activity type "Test". Activities go to cost centers "Goods receipt" and "Finished products". The allocation is made on the basis of the tracing factor "Number of test items" (NI). For "Goods receipt" these are 4000 items, for "Finished products" 6000. Price per activity unit for "Quality control" equals 50 USD/hr. The resulting costs of activity production equal USD 50,000. The receiver centers are debited according to the tracing factor with the following costs: Goods receipt: (50,000 X 4000 NI) / 10,000 NI = $ 20,000 Finished products: (50,000 X 6000 NI) / 10,000 NI = $ 30,000 Activity types of category 2, "Indirect entry, indirect allocation" Activity determination for the sender takes place via receiver tracing factors and weighting factors defined for each sender. The sender rule here is usually "Indirectly determined quantities"; receiver rule can be any rule. Using the example above, the receiver tracing factors are: "Goods receipt" 4000 NI "Finished products" 6000 NI Total 10,000 NI The sender is credited with 10,000 test items. This amount can be valuated with weighting factors defined per sender activity type. Weighting factor, activity type "Test": 0.4 Debiting of the sender and the activity type "Test" are thus equal to (50,000 / 10,000 NI) X 10,000 NI X 0,4 = $ 20,000