To allocate costs, you must first set up a Calculation version. You can then choose between three different allocation types:

• Allocation

• Internal cost allocation

• Surcharge calculation

To allocate costs with the allocation type Surcharge calculation, follow these steps.

1. Click Cost accounting> Setup> Calculation> Calculation versions> Allocations.

2. Press CTRL+N to create a new line.

3. Select the Allocation level. If the Allocation levelis Hierarchy, specify the Allocation hierarchy.

4. Type a reference in the Allocation referencefield. Select an Allocation dimension, which is a dimension or a division depending on the Allocation level.

5. In the Allocation typefield, select Surcharge calculation.

6. On the Generaltab, enter the Allocation accountand Offset account.

7. On the Surcharge calculationtab, select the check boxes under Cost share.

8. Complete the fields under Value calculationto specify the allocated value.

9. Select the relevant check boxes under Offset transaction dimension.

10. On the Dimensiontab, enter the Dimensions.