Within the management accounting team at Bike Company SE, Chris works closely with his dedicated teammate, Robert. Robert's expertise lies in refining management accounting processes, with a special emphasis on enhancing operations in the SAP S/4HANA environment and system configuration.
In a recent team meeting, the team manager noted that the company’s transition to SAP S/4HANA presents a prime opportunity to scrutinize the current management accounting procedures, particularly the cost allocation cycles throughout the company. Robert has been assigned to spearhead this project and is now tasked with improving the allocation processes. Always open to seeking advice and generating ideas, he brings this topic to his weekly coffee corner discussion with Chris. Here's how their conversation unfolded:
Having listened in to the conversation with Chris and Robert, it's now time to take a closer look at the tools available for overhead cost allocation and understand how they can provide a trustworthy source for analysis.
We'll focus on how to use templates to manage allocations and discuss the benefits of using tags for cycle administration.
In the following lesson, you'll delve deeper into a more sophisticated, cycle-related feature: the allocation structure. This can determine which G/L account to use for cost transfers based on the type of posting and the chosen receiver. Lastly, we'll explore additional allocation contexts.
Let's begin with a comparative overview of the two main types of period-end cycles.