direct activity alloocation

xiaoerp

I would like to know the basic difference between direct activity alloocation and indirect activity allocation, in which situation we need to use direct activity alocation, thanks.


direct activity allocation works like this, cost center 2(receiver) consume activity machine hours from cost center 1(sender), then you can absorb(pull) cost from cost center 1 to cost center 2 by posting direct activity allocation.
for indirect activity allocation which is more like the cost distribution and assessment, the indirect activity allocation cycle just allocate the activity quantity other than the cost itself from sender cost center to the receiver cost center, the activity quantity then multiply with the activity price to get the cost for such activity quantity, in other words indirectly activity allocation is used to allocate( push) the activity quantity from the sender to receiver based on the allocation basis( such as posted cost, SKF etc).
From the above explanation we can see that the difference between direct and indirect activity allocation is that for direct activity allocation, we do know the quantity of the activity the receiver consumed from the sender, the sender and receiver relationship is one to one. but as for indirect activity allocation we normally do not know the quantity of the activity the receiver cost center(s) comsuned from the sender cost center(s), rather the activity quantity is allocated from sender to receiver based on complex allocation bases, it is about cost push other than pull for direct activity allocation. the relationship between receiver and sender is normally many to many(collective run).


该贴已经同步到 xiaoerp的微博