Statistical vs Real Postings

During posting, only a real account assignment object can be transferred. The only exception to this rule is the account assignment to a cost center, and an additional, real account assignment object. In this case, the system always updates the cost center statistically. If you specify a real order and a cost center in the posting row, then the real posting is made for the internal order. Statistical postings are entered for the cost center and the profit center. However, If the order is only statistical, then it is posted to as such, and the cost center receives real postings. You can only assign one object type to each posting row. This means that you cannot post the same transaction row to more than one cost center or order, and so on.

Cost Center + Real Internal Order --> posting goes to the Real Internal Order

Cost Center + Statistical internal order --> posting goes to the Cost Center

Revenues can only be posted as real postings to a profitability segment, sales order, sales project, or to a real order that can have revenues. Revenue postings to the profit center are statistical, the same as for cost  postings. Revenues can also be recorded as statistical values on cost centers.

Assessment vs Distribution

Both are used for internal allocation for costs that cannot be directly associated in the manufacturing of a product or service.

Can be used for Cost Centers, Profit Centers, Segments and Functional Areas.

In Assessment, you credit the cost center using a different Cost Element while Distribution will credit the cost center with the same cost element which means that every after assessment, the originating cost object is zeroed out.

In choosing between the two, assessment is more used because there are businesses who would like to trace the origin of costs.

Example of Distribution is that if you use a Cost Center which is just really a temporary cost holder.

You use assessment if you would like to transfer but still would like to trace where it came from?

Example of Allocation:

Electric Bill

There are 4 floors with 4 different departments. We can use a simple allocation that this is divided into 4 every billing period.

Another option is that there is a weighted percentage per department, example: 50% for Department 1, 20 % for dept 2, 15% each for dept 3 and 4.