Performing Template Allocation

Template allocation is a technique for transferring the costs of Overhead Cost Controlling to other Controlling objects on the basis of consumption. All Controlling objects are suitable for use as receivers, especially cost objects.

The template allocation technique allocates processes of Activity-Based Costing (CO-OM-ABC) with the help of activity types from cost center to other controlling objects.

• The system selects the costing sheet for the application of overhead with the valuation variant.

• You can either enter the overhead key directly in the cost object or derive it from the overhead group from the material master (costing 1 view).

• You can assign a template in Customizing with the combination of overhead key and costing sheet.

You must define a template in which you use the function ORDER_TARGET_PROCESS_QUANTITY to calculate the actual process quantity. This function allows the system to calculate target costs of the process on the basis of the current standard costs.

• Template allocation transfers overhead costs to other controlling objects based on consumption.
• It allocates processes with activity types from cost centers to cost objects.
• Costing sheet and overhead key determine template allocation.
• Template allocation technique uses diverse cost drivers.