sap Essay example
Finance & Accounting
Pages 4 (1004 words)
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SAP Name: Course: Professor’s name: University’s name: City, State: Date of submission: Qn.1 SAP applications are built around the latest R/3 system that provides the application with capability to manage an organization’s finances, assets, and cost accounting information related to production operations, materials, personnel, plants and documents that have been archived (Periodic Allocations).


These posting keys are also crucial in controlling entries to be made in the line items. A statistical key figure is utilized in allocating internal costs between different cost centers that utilize services related to other cost centers (Padhi, 168). In this case, statistical key figures can be machine hour or the head count of any cost center. During the processing of a sales order, SAP R/3 utilizes a system of allocating prices to materials and products known as the condition technique. In allocating costs, there are three distinct methods utilized under SAP. The assessment method transfers primary and secondary costs from the dispatching cost center to the receiving control object. During utilization of this method, various business processes and cost centers can take the place of the sender, whereas a cost object, internal order or a cost center are the receivers of the assessment. The user can restrict the number of receiver categories through customization, where both the primary and secondary postings are allocated at the end of each period through utilization of user defined keys (Padhi, 175). ...
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