Understanding Burdening-Based Allocations

The advanced variable numerator method of computing burdening-based allocations provides the same functionality that is available in the account balance-based variable numerator method but also supports more complex allocations for labor, cost pools, and burdening. The advanced method computes both direct and indirect allocations and retrieves source and basis amounts for burdening-based allocations from these tables:

• Business Unit Master (F0006)

• Account Master (F0901)

• Burdening Summarized Ledger (F52G02)

To select the source data and the basis data to use for burdening-based allocations, you set up versions of two programs and use the data selection to specify the source and basis accounts to retrieve from the F0006, F0901, and F52G02, tables. The programs that you use to create the versions are:

• Create Source / Basis Data Selection Versions for Burdening Based Allocations (R09123C).

• Create Source / Basis Pool Grouping Code Data Selection Versions for Burdening Based Allocations (R0948S84).

For burdening-based allocations, you also use these setup programs:

• Create Business Unit Overrides (P09123A).

• Advanced Variable Numerator (P09123).