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

• Allocation

• Internal cost allocation

• Surcharge calculation

To allocate costs with the allocation type Internal cost allocation, 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 the Internal cost allocation.

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

7. On the Internal cost allocationtab, select the check boxes under Cost share.

8. Select the Service categorythat you want to allocate. Selection is only possible for service categories where the Use of service categoryfield in the Cost categoriesform is set to Internal cost allocation

9. Select the Cost rate typefor each value type.