What is meant by Apportionment definition?
Allocation definition refers to the establishment and management of criteria and methods for distributing costs, revenues, or expenses across various cost centers, cost units, or departments within a company. This is a central aspect of internal cost accounting and ensures the causative distribution of overhead costs.
Typical Features of Software in the Area of "Allocation Definition"
- Recording Allocation Keys: Definition and management of allocation keys used for distributing costs and revenues.
- Automatic Allocation Calculation: Automation of the calculation and distribution of allocations based on defined keys and criteria.
- Flexible Distribution Methods: Support for various distribution methods such as percentage-based allocation, fixed amounts, or quantity-based distribution.
- Multi-level Allocations: Ability to define multi-level allocation procedures where costs are first distributed to intermediate cost centers and then to final cost centers.
- Data Integration: Integration with other modules and systems such as financial accounting, controlling, and cost accounting for seamless data transfer.
- Transparency and Traceability: Provision of detailed reports and logs that make allocation calculations and distributions traceable and transparent.
- Simulations and Scenarios: Capability to simulate different allocation scenarios and analyze their impacts before final implementation.
- Periodic Allocations: Support for periodic (e.g., monthly, quarterly) allocation processes.
- Adaptability: Easy adjustment of allocation definitions when changes occur in the organizational structure or cost centers.