Top Down Distribution (TDD) – CO-PA

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Dear All,
Thanks for given opportunity to upload this document, which will help FICO consultants during the
working on TDD – COPA.

This document prepared based on my knowledge and experience, working on many TDD issue and some
issue raised with SAP expert via OSS message. So I thought why not create such document which collect
all information related to TDD. So I prepared this document and sharing with you.
Thank you

Akesh Agrawal

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SAP – Controlling

CO-PA – Profitability Analysis

Top-Down Distribution
(TDD)
Transaction Code:

Transaction Code: KEBC (Set Operating Concern)

Transaction Code: KE28 (Create/Execute Top-Down Distribution)

Transaction Code: KE29N (Top-Down Distribution Log Overview)

Purpose of the Document:

To know what is the Top-Down Distribution (TDD) in SAP.

To know how TDD works in COPA

Target Audience:

Consultants in SAP FI-CO Financial Accounting and Controlling module.

Disclaimer:

1. Some of the discussion is taken from the SAP Documentation.

2. Some of the data is hidden to adhere to data security policy

Business Purpose of Top-Down Distribution

In Profitability Analysis, sales revenues, sales deductions, and costs of goods manufactured are
generally stored at the customer/product level. However, many business transactions – such as
freight invoices, insurance expenses, or advertising – cannot easily be assigned to such a
detailed level in CO-PA. Consequently, these need to be posted at a summarized level, such as
the division, sales organization, or company code level.

Top-down distribution of actual data is a periodic function that lets you distribute this aggregated
data to more detailed levels in CO-PA on the basis of reference information (such as the data from
the previous year/previous month).

The data is distributed according to existing “reference data”. You can use either planning or
actual data as a reference. You can also distribute period by period, or aggregate the period
values to smooth out variances.

The system distributes the data by value field or according to how the values in the selected
value field are distributed.

When top-down distribution is executed, values that are not assigned at the higher level (#) are
distributed. Characteristic derivation occurs but only for those characteristics that were used in
summarization (in other words, those values for which the summarized field in the processing
instructions screen was selected).

You can perform distribution in any of the following ways:

 You can select values posted to any profitability segments and in any value fields, and then
distribute this data to a specified distribution level.
 You can use existing actual or planning data as the basis for this distribution. The basis can be
the values in a single value field (such as revenue) or a calculated value (such as contribution
margin 1) or occur by value fields.

You can also distribute period by period, or aggregate the period values to smooth out variances.

Using top-down distribution of actual data can lead to quite large data volumes, since the data is
distributed to a large number of profitability segments.

Activities
You execute the top-down distribution of actual data by choosing Controlling > Profitability
Analysis >Actual postings > Period-end closing > Periodic adjustments > KE28 – Top-Down
Distribution from the application menu.

Entries for the actual data

1. The posting periods or — if you are using the alternative period type — the weeks that you
want to distribute
2. The record type of the data you want to distribute

Entries for the reference data

1. Enter the periods from which the reference data should be selected.
2. Specify whether you want to reference actual data or planning data. If you reference planning
data, enter the plan version from which the data should be selected.
3. Enter the record type of the data you want to reference.
4. Select the Aggregate period’s field if you want to add together the period values of the
reference data rather than distributing them directly. This gives you the same value in each
period for each segment, to smooth out incidental differences which occurred from period to
period (see also Example: Period Aggregation).

Entries for the reference base

1. Select the Single value field if you want to distribute all the value fields in proportion to the
values contain in one value field. You can use any value field or key figure (formula defined
using value fields). The key figures you can use here need to be defined in Customizing.
2. If you have selected the Single value field, enter the value field that you want to use as the
distribution factor.
3. Select the By value fields field if you want to use each single value field as the basis for how
that value field is distributed. This means that the value field Revenue would serve as the
basis for how the revenues are distributed.

Record Type: X
Source Company Code Product CO Area Busi Sales Org. Local Lev Con Oc Picking
Area 01 Cla03 Time
TDD CC01 PD1 COA1 SO01 111 231 30
TDD CC01 PD1 COA1 SO01 112 241 50
TDD CC01 PD1 COA1 SO01 113 251 20

Entries under Extras

1. Select the Test run field if you want to distribute your data without making any changes to the
database for (only testing the correctness).
2. Select the Background processing field if you are distributing for a large number of segments.
The system will execute the function in the background so that your system is not loaded
down unnecessarily.

Processing Instructions push-button

Here you can specify how each characteristic should be processed in top-down distribution:
 Distribution level:
 Retain/Cpy:
 Summarize:
 Ref: The characteristic values of the selected characteristic are transferred directly from the
source data. However, the system uses different characteristic values of the characteristic as
reference data when determining the distribution key. (Refer attached excel)

Selection Criteria push button

Here you can restrict the amount of profitability segments that you want to delete. You can enter
one or more single values or an interval for each characteristic. All the values of that
characteristic are distributed if you enter an asterisk (*).

With ref to Processing instruction screenshot here:

a. In Distribution level we have selected ‘Local Level 01’ and ‘ConsumpOccassClass03’ in

“DLvl” characteristics we want to distribute to.
a. In Retain/Cpy here we have selected all characteristics you already have in COPA records
you want to keep as it is in above screenshot we have ‘Product’, ‘Company Code’, ‘CO Area’,
‘Business Area’ and ‘Sales Org’

a. In Sum we have select all other characteristics that should be derived during TDD Like ‘Distr.
channel’ and ‘Division’ etc.

Actual Data before TDD

Record Type: B,C &D

Option Cpy Cpy Cpy Cpy Cpy Dist Dist Sum Sum Value Value
Field Field
Source Company Product CO Busi Sales Local ConOc A. Distri.Channel Division Media Other
Code Area Area Org. Lev 01 Cla03 Trd Adv

Data CC01 PD1 COA1 SO01 # # # # 1000 1500

posted
Higher
Level
From
Allocation
With ref to above selection what doses the systems technically do:

Retain/Cpy

 The TDD selects all lines in COPA that have a characteristic ‘company code’ and ‘Local Level 01’
and ‘ConsumpOccassClass03’ not assigned
 Summarizes this records by ‘company code’, ‘Product’, ‘CO Area’, ‘Business Area’ and ‘Sales
Org’
 Creates a ‘cancellation’ line by ‘company code’, ‘Product’, ‘CO Area’, ‘Business Area’ and ‘Sales
Org’
 This value will not be changed during TDD!

TDD CC01 PD1 COA1 SO01 # # # # -1000 -1500

Distribute:

 The TDD will look for the total “Picking Time” by ‘Local Level 01’ and ‘ConsumpOccassClass03’
posted in a specific period for a specific record type.
 Distribute the amount posted on higher level of characteristic according to the “Picking
Time” from the reference data (e.g. from cost center allocation)

Summarize:

 On the cancellation line the TDD will set all characteristics where you selected ‘summarize’ to
‘blank’. (In our example ‘Distr. channel’ and ‘Division’ etc.)
 After TDD: for the cancellation line item the field which is blank in original line item will remain as
it is. The derived characteristics in the cancellation line item will also be in line with the derivation
of original line item.
 After TDD: for distribution characteristic field which is blank in original line item will be derived
from the characteristic derivation rule for the distribute line item.
 For those characteristics that are neither selected as distributed nor retained, you should leave
the default values “*”for this characteristics.

Value Fields push-button

Here we have to specify the value fields of the operating concern that we want to distribute
those value field you need to select. In our case we have selected value field for distribution is
(Media Trd., Other Adv ).

Note:

 ‘Company code’, ‘Product’, ‘CO Area’, ‘Business Area’ and ‘Sales Org’ will be unchanged (No
derivation!)
 Amount will only be distributed to Company Code-CC01, Product-PD1, CO Area-COA1, Business
Area -Blank and Sales Org-SO01.
 Distribution amount for the ‘Local Level 01’ and ‘ConsumpOccassClass03’ is calculated based on
“Picking Time” by ‘Local Level 01’ and ‘ConsumpOccassClass03’.
 ‘Distr. channel’ and ‘Division’ is derived based on derivation rules during the TDD

Actual Data after execution TDD

Record Type: B,C &D

Option Cpy Cpy Cpy Cpy Cpy Dist Dist Sum Sum Value Value
Field Field
Source Company Product CO Busi Sales Local ConOc A. Distri.Channel Division Media Other
Code Area Area Org. Lev 01 Cla03 Trd Adv

From CC01 PD1 COA1 SO01 # # # # 1000 1500

Allocation
TDD CC01 PD1 COA1 SO01 # # # # -1000 -1500
 TDD CC01 PD1 COA1 SO01 111 231 11 12 300 450
TDD CC01 PD1 COA1 SO01 112 241 11 12 500 750
TDD CC01 PD1 COA1 SO01 113 251 11 12 200 300
Top down Distribution KE28 Actual work as per details given above.

Important Notes:

1. The error message KG323 is issued for top-down distribution for the actual data (Transaction KE28):
‘Value could not be distributed” In most of Top-Down Distribution cases system give the above error
message “Value Could not be distribute”

Basically for the system to find reference data for the selection criteria given in the variant there
need to be line items in the reference data which have the same characteristic combination as those
in the source data for the characteristics selected in the ‘CPY’ column of the processing instructions.

You must consider important fact that error message is always raised for concrete segment (given
by characteristics with processing option copy)

In this case the error message KG323 which is raised by system you have to check the first log and
verified that this characteristic combination does exist in the reference data?.

For Example: In below TDD case Controlling Area characteristics selected in “CPY” column of the
processing instruction.

In below source data and reference data is not same therefore system will give the error message
KG323.

Refer below table screenshot where you can see that Controlling Area = ‘CO01’ in the Source
(Actual) data with record type “B,C & D” while the system searches for the char combination with
Controlling Area initial (Refer below screenshot 2)
In reference data Record type “X” Controlling Area is blank. (Refer below screenshot 1).

Actual/Source Data:

Record Type: B,C &D

Option Cpy Cpy Cpy Cpy Cpy Dist Dist Sum Sum Value Value
Field Field
Source