What is meant by Allocation key?
The term "allocation key" refers to a distribution criterion used in accounting and controlling to allocate costs, expenses, or revenues to different cost centers, departments, or projects. The allocation key defines the principle by which the distribution occurs, such as by area, number of employees, working hours, or other relevant factors. The aim is to make the distribution fair, transparent, and aligned with actual causation.
Typical software functions in the area of "allocation key":
- Definition of Allocation Keys: Ability to define various allocation keys based on different criteria like area, number of employees, or revenue.
- Automatic Distribution: Automated distribution of costs and revenues based on the stored allocation key to minimize manual errors.
- Flexible Adjustment: Adjustment and modification of allocation keys to accommodate new conditions or organizational changes.
- Simulation and Forecasting: Simulation of different allocation scenarios to analyze the impact of various keys on cost distribution.
- Reporting: Creation of detailed reports on the applied allocation keys and their impact on cost centers.
- Linkage with Cost Center Accounting: Integration with cost center accounting for direct assignment and evaluation of allocations.
- Audit Trails and Traceability: Ensuring the traceability of the distribution through logging and historization of the used keys.
- Automatic Updates: Regular updating of allocation keys based on current data (e.g., employee numbers or production volumes).