In SAP S/4HANA Controlling, a distribution cycle is used to allocate primary costs from sender cost centers to various receiver controlling objects. Both Cost Centers and Work Breakdown Structure (WBS) Elements are valid controlling objects that can be defined as receivers in a distribution cycle. They are capable of collecting costs for further analysis and processing. The system uses a tracing factor, such as statistical key figures, to determine the proportion of costs allocated to each receiver.

A. Functional Area: This is an organizational unit used for cost-of-sales accounting to structure the P&L statement. It is not a direct receiver cost object in a distribution cycle.

B. Business Area: This is an organizational unit in Financial Accounting used for creating internal balance sheets and P&L statements. It is not a direct receiver in CO allocation cycles.

1. SAP S/4HANA Help Portal

"Distribution": "You can choose the following as senders/receivers: cost centers

business processes... You can also use all types of orders and WBS elements as senders

provided they are integrated in Cost Center Accounting." This confirms Cost Centers and WBS elements are valid receivers. (Accessed under SAP S/4HANA -> Enterprise Business Applications -> Finance -> Controlling -> Cost Center Accounting -> Period-End Closing -> Periodic Allocations -> Distribution).

2. SAP S/4HANA Help Portal

"Receiver Tracing Factors": "The system distributes the costs to be allocated to the individual receivers based on the receiver tracing factors... The receivers can be cost centers

orders

WBS elements

or business processes." This explicitly lists Cost Centers and WBS elements as possible receivers. (Accessed under SAP S/4HANA -> Enterprise Business Applications -> Finance -> Controlling -> Cost Center Accounting -> Period-End Closing -> Periodic Allocations -> Distribution -> Processing Allocation Cycles).

3. SAP Learning Hub

Course S4F23 - Management Accounting in SAP S/4HANA: In the unit on Cost Center Accounting

the section covering periodic allocations details the structure of distribution cycles. It specifies that valid receiver objects include cost centers

internal orders

and WBS elements

among others

but not organizational units like Functional Area or Business Area. (Refer to S4F23

Unit 4: Cost Center Accounting

Lesson on Periodic Allocations).