Describing Postings Within Management Accounting

Objectives

After completing this lesson, you will be able to:

  • Recall examples of postings within controlling

Cost Reassignment

Let’s assume the accountant produced a posting error when posting telephone costs to an auxiliary cost center. When this error is detected and verified by the cost center manager, it’s possible to correct the posting in controlling using the Reassign Costs and Revenues app instead of reversing the general journal entry.

With the Reassign Costs and Revenues app, you can reassign costs and revenues for example when a posting is incorrect.

Note that no validation on the sender cost center is done. In other words, the system does not check whether the costs you want to reassign actually exist on the sending cost center or not. This means that negative costs (credit balances) may result on the sending cost center after the reassignment.

Furthermore, there is no reference to the source document number posted on the sender cost sender, that is, you can’t trace back to the original accounting document when the reassignment is done.

Note

You cannot enter ledger-specific values for cost and revenue repostings in the Reassign Costs and Revenues app. The same values will be posted in all ledgers.

Reassign Costs Between Cost Centers

Direct Activity Allocation

Direct Activity Allocation Principle

Check out the animation below to get an overview of direct activity allocation:

Execute a Direct Activity Allocation

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