How to Configure and Execute Assessment Cycle in SAP

How to Configure and Execute Assessment Cycle in SAP

Scenario: In this blog, we walk through a complete example of cost allocation using an Assessment Cycle in SAP Controlling. The process demonstrates how to allocate primary costs from one sender cost center to multiple receiver cost centers using secondary cost elements via an assessment cycle.

Note: Assessment cycle and distribution cycle in SAP are part of period-end activities to reallocate costs between cost centers.

1. Secondary Cost element:

• How to Create Secondary Cost element in SAP S4 HANA in T code: FS00.
• How to Create Secondary Cost element in SAP ECC in T code: KA06

2. Primary Cost Element:

• How to Create Primary Cost element in SAP S4 HANA in T code: FS00
• How to Create Primary Cost element in SAP ECC in T code: KA01

3. Cost Center or Cost Center Group

In this blog, we are allocating costs from one cost center (CC: 1000) to 2 receiving cost centers (CC: 5000 & 6000).

Find a standard allocation structure, select it, and click the Copy icon.

Enter the allocation structure name and description, then press the Enter key.

Now select the newly created allocation structure, then click on Assignments.

Click on New entries button.

Enter the assignment name and description, then press the Enter key.

Now select the assignment and click on the Source tab.

Now specify the source cost element or cost element group (primary cost elements), then click on the assessment cost element to assign the secondary cost element.

Click on New entries button.

Enter the secondary cost element here to define the target for cost allocation, select it and, then click on the Settlement Cost Elements (left side).

• How to Create Secondary Cost element in SAP S4 HANA in T code: FS00
• How to Create Secondary Cost element in SAP ECC in T code: KA06

Click on New entries button.

Specify the receiver category as shown below.

Click on save button.

Note: Now we need to maintain this allocation structure in the assessment cycle.

Now enter the Assessment cycle name and start date, then press the Enter key.

Enter the end date and description of the assessment cycle, then click on ‘Attach Segment’.

Give segment name and description (We can have multiple segments in single assessment cycle).

Senders/Receivers:

• Sender details – Cost center, Cost element (Primary cost element)
• Receiver details – Cost Centers – In this scenario, we are using a group of 2 cost centers (CC: 5000 & 6000), which have been grouped under the cost center group COST_A, as explained in Step 3.

Note: You can define one or more senders or receivers, either individually or by using groups for easier configuration and maintenance.

Sender Values: Share in Percentage – 100% (This means that 100% of the costs captured by the sender cost center will be reallocated to the receiving cost centers, leaving no costs remaining with the sender cost center)

For better understanding:

• Sender cost center: 0 (This will be re-allocated to the receiving cost centers)
• Receiver cost center: 50 %
• Receiver cost center: 50 %

Receiver Tracing Factor: Based on the cost center group specified in the second tab (Senders/Receivers), you need to define the portion or percentage that each cost center will receive from the sender cost center during allocation.

Click on save button.

Now customizing request prompt will come, select your request and click on continue.

The system has successfully created the assessment cycle.

6. Post FI Transactions to Cost Center – FB60

Post an FI transaction to the primary cost element/cost center using T-code FB60.

Document posted.

Note: Now lets run the report before the assessment cycle execution to confirm the amount/value is with the sender cost center

7. Generate Cost Center Report – KSB1

Go to T code: KSB1.

Now enter the required inputs such as Controlling Area, Cost Center (Sender) or Cost Center Group, and Cost Element or Cost Element Group (Primary cost elements), then click the Execute button.

As we can see the report, the cost of 50,000 has been captured by cost center 1000.
According to our scenario, we will execute the assessment cycle to reallocate this cost to the two receiver cost centers: 5000 and 6000.

8. Run or Execute Assessment Cycle – KSU5

Go to T code: KSU5.

Enter the period (from and to), fiscal year, assessment cycle (you can run multiple cycles in a single execution), and the start date of the cycle. Then, remove the tick mark for Test Run.

Click on execute.

The assessment cycle is executed successfully without errors and it was displayed with 1 sender and 2 receivers. To view the detailed report, double-click on the line item.

Now displayed the detailed report of the assessment cycle.

Clear explanation – An FI Transaction was posted in FB60 with 50000 INR and that was captured by the cost center 1000. When the assessment cycle is executed, this cost will be reallocated to the receiving cost centers based on fixed percentages maintained in the configuration of assessment cycle (T code: KSU1).

Cost center type	% maintained in A cycle	Amount
Sender Cost center – 1000	0
Receiver Cost center – 5000	50%	25000
Receiver Cost center – 6000	50%	25000
Total cost (Initially captured by CC: 1000)	100 %	50000

Note: Once the assessment cycle is executed and the costs are reallocated to the respective receiver cost centers, we will verify the postings by checking the KSB1 report for each cost center.

9. Re-check Cost Center Report – KSB1

Go to T code: KSB1.

Now enter the required inputs such as Controlling Area, Cost Center or Cost Center Group (Receiver), and Cost Element or Cost Element Group (Secondary cost elements), then click the Execute button.

We can now see that the receiver cost centers 5000 and 6000 have received the costs from the sender cost center 1000, with the help of secondary cost element: S001.

SAP CO Cost Re-allocation:

• Controlling Document Types (T code: KANK) in SAP: Click here
• Manual Line Item Reposting (T code: KB61) with FI document number in SAP: Click here
• Manual Line Item Reposting (T code: KB11N) without FI document number in SAP: Click here
• How to Configure and Execute Distribution Cycle (T code: KSV1 & KSV5) in SAP: Click here
• How to Configure and Execute Assessment Cycle (T code: KSU1 & KSU5) in SAP: Click here
• How to Generate the Cost center Report (T code: KSB1) in SAP: Click here

SAP FICO Sub module wise:

• How to Create a Controlling area in SAP: Click here
• SAP Finance Enterprise structure: Click here
• SAP Finance GL Accounting: Click here
• SAP Finance Accounts Payable: Click here
• SAP Finance Accounts Receivable: Click here
• SAP Finance Bank Accounting: Click here
• SAP Finance New Asset Accounting: Click here
• SAP Controlling – Cost Element Accounting: Click here
• SAP Controlling – Cost Center Accounting: Click here
• SAP Controlling – Profit Center Accounting: Click here
• SAP FI MM Integration: Click here

How to Configure and Execute Assessment Cycle in SAP How to Configure and Execute Assessment Cycle in SAP