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Top-down distribution in SAP S/4HANA Margin Analysis

How one freight bill posted for a whole customer group reaches every customer and product, explained for users and for consultants from other modules.

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Overview

What top-down distribution is, if you have never used it

Some costs and revenues reach SAP without the detail management wants to see. A carrier bills a month of deliveries in one invoice, an advertising campaign is paid for a whole customer group, an insurance premium covers a division. Accounting can post them, but only at that higher level: customer and product stay empty, shown as # (not assigned), and every customer or product margin comes out wrong.

Top-down distribution, TDD for short, is the periodic function of profitability analysis (CO-PA) that fixes this. It takes values posted at a higher level and spreads them to the detailed level, customer, product or both, in the same proportion as reference data such as revenue or quantities sold. In SAP S/4HANA it belongs to Margin Analysis and runs in the Universal Allocation apps; in SAP ECC it ran in transaction KE28, which is still in the system.

Runs on
  • SAP ECC 6
  • SAP S/4HANA
  • SAP S/4HANA Cloud
Main transactions and appsKE28F3338F3548F4363

Use the User | Consultant switch at the top of the page to show or hide the technical layer: tables, Customizing and the settings behind each step.

Five questions every distribution answers

Whether it runs in KE28 or in Manage Allocations, a top-down distribution is these five answers. Get one wrong and the result is wrong, or nothing is distributed at all.

  • 01What is distributed?The sender: values posted with the detail missing, shown as #.Sender#
  • 02Down to which level?Customer, product, or both: the characteristics marked Distributed.TemplateTDCUSTOMER
  • 03In what proportion?Reference data: revenue or quantities, actual or plan, one month or several.Reference41000000
  • 04What must stay the same?Company code, profit center and every retained characteristic.RetainedPC10
  • 05Where is it posted?A journal entry in Margin Analysis, CO-PA line items in costing-based CO-PA.ResultAAAT

  • It fills in, it does not empty

    An assessment credits the sender and moves the cost elsewhere. TDD credits the value at # and debits the detailed segments under the same higher-level values, so the customer group still shows the same amount after the run. SAP’s own example: 600 on product group PG1 becomes 150 on P1 and 450 on P2, and PG1 still totals 600.

    Source: SAP Help, selection criteria and processing instructions

  • A ratio taken from reference data

    The sender is split by a ratio calculated from reference data: actual or plan, revenue or quantities, one period or several added together to smooth out a month that was not typical. Choosing the reference is the business decision; the rest is mechanics.

    Source: SAP Help, defining top-down distribution templates

  • Only what is still unassigned

    In actual distribution only unassigned data is distributed: values already posted with a customer are left alone. And TDD stays inside its walls: it cannot move values across company codes, business areas, profit centers, segments or functional areas.

    Source: SAP Learning, other actual postings in CO-PA

Who takes part

  • FIPosts the billFreight, advertising or bonuses, with whatever market segment is known.
  • SDBills the customersRevenue and quantities by customer and product: the usual reference.
  • CO-OMHands over cost center costsAllocated to Margin Analysis before they can be distributed.
  • CO-PAOwns the rulesTemplate, cycle, test run and live run.
  • ManagementReads the marginsCustomer and product profitability, now with freight.

This page uses one example

October freight of 9,000.00 for customer group 01 Retail

Company code 1010, profit center PC10, G/L account 63100000 Outbound freight. The carrier’s invoice covers every October delivery of FG-500 Lemon soda 12-packs and FG-510 Mineral water 6-packs to three supermarkets: Sunmart, NorthFresh and CityGrocer. FG-500 is the same product as on the SAP PP page. Accounts, customers and numbers are examples only.

Allocation or top-down distribution?

Both move money with a key, which is why they get confused. The difference is what happens to the sender.

Allocation · assessment, distribution

  • Cost center 4300 Logistics9,000.00 → 0.00
  • Receivers0.00 → 9,000.00

The sender is emptied: the cost now sits on other objects, on the original account with a distribution or on an assessment account with an overhead allocation.

Top-down distribution · Margin Analysis

  • Retail · customer #9,000.00 → 0.00
  • Retail · three customers0.00 → 9,000.00
  • Retail in total9,000.00 → 9,000.00

The amount stays on the same account and customer group. TDD only fills in the detail that was missing.

Sources: SAP blog, top-down distribution in SAP S/4HANA (TDD does not change the amount on the sending object); SAP Help, example of top-down distribution; SAP Learning, distribution and overhead allocation.

The process

Follow one freight bill from the posting to the customer margin

Nine steps in SAP’s standard order. Pick a step to see what happens, how it was done in SAP ECC with KE28, how SAP S/4HANA does it in Universal Allocation and what it hands to the next step. The Consultant view adds what sits under the hood.

Step 1 of 9 · What happens

The freight bill is posted at customer-group level

The carrier invoices a month of deliveries in one bill. Accounting posts 9,000.00 to the freight account with what it knows: company code, profit center and customer group 01 Retail. Customer and product stay empty, shown as #, so the cost is right for the group and missing for every customer in it.

Who: Accounts payable, general ledger accountant.

Under the hood

Top-down distribution reads only journal entry items whose real account assignment is the profitability segment, ACDOCA-ACCASTY = EO. Items with only an attributed segment, derived from a cost center, order or WBS element, cannot be distributed.

  • ACCASTY
  • EO
  • ACDOCA

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

An FI posting such as FB50 with a profitability segment. In costing-based CO-PA the PA transfer structure FI assigns the account to a value field, here Freight; in account-based CO-PA the value stays on the account.

  • FB50
  • KE24

SAP S/4HANA · Margin Analysis

Post General Journal Entries (F0718), with the market segment on the P&L line. The journal entry item gets the profitability segment as its real account assignment. G/L accounts must be cost elements to carry it.

  • F0718
  • EO

NextA sender: 9,000.00 on customer group 01 Retail, customer and product not assigned.

Sources: SAP Learning, direct postings from FI; SAP blog, CO account assignment and attribution; SAP KBA 3583697; SAP blog, top-down distribution in SAP S/4HANA.

Step 2 of 9 · What happens

Costs on cost centers move to Margin Analysis first

Some costs to distribute never reach a market segment: they sit on a cost center, such as the logistics department. TDD cannot start from a cost center, so they are first allocated to Margin Analysis at a high level, for example the customer group, and distributed from there.

Who: Controller.

Under the hood

Assessing to a few segments first keeps the record count down: SAP Help works out 2+m records instead of n×m when the cost centers would all be distributed with the same factors. A distribution keeps the original account; an overhead allocation posts on an assessment account.

  • KEU5
  • KSV5

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

An assessment of cost center costs to CO-PA, such as KEU5, to one or a few profitability segments; KE28 then distributes them. SAP Help suggests this two-step approach to keep data volumes down.

  • KEU5
  • KE28

SAP S/4HANA · Margin Analysis

Manage Allocations with context Margin Analysis and type Overhead Allocation or Distribution, for actual and plan data since SAP S/4HANA 2021. The top-down distribution cycle then runs as the second step.

  • F3338
  • F3548

NextEvery amount to distribute sits on a real profitability segment.

Sources: SAP Help, top-down distribution of actual data and in Universal Allocation; SAP blog, Universal Allocation in SAP S/4HANA 2021; SAP Learning, distribution and overhead allocation.

Step 3 of 9 · What happens

Decide what happens to every characteristic

Before anything runs, someone decides field by field what TDD does with each characteristic: distribute down to it, keep the sender’s value, use it to match sender and reference, or clear it and rebuild it. This is the heart of TDD, and why two cycles with the same sender can post very different results.

Who: Margin Analysis consultant.

Under the hood

Four categories: Distributed (filled from the reference data), Summarized (cleared, then derived), Retained and Relevant to Reference (links sender to reference) and Retained but Irrelevant to Reference (kept, not used to link). Company code and profit center are defaulted and cannot be deleted. A field can be hidden on the UI and still apply.

  • TDPRODUCT&CUSTOMER
  • Hidden on UI

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

Processing instructions inside KE28: Distribution level for the target, Retain for values that stay, Summarize for values to aggregate. Characteristic derivation runs only for the summarized characteristics.

  • KE28
  • KEBC

SAP S/4HANA · Margin Analysis

A template in Customizing: Controlling › Profitability Analysis › Flows of Actual Values › Periodic Adjustments › Define Template for Top-Down Distribution. SAP delivers TDPRODUCT, TDCUSTOMER and TDPRODUCT&CUSTOMER; the public cloud uses configuration step 150005.

  • TDCUSTOMER
  • TDPRODUCT
  • 150005

NextA template, here TDCUSTOMER: customer distributed, customer group retained.

Sources: SAP Help, defining top-down distribution templates and top-down distribution of actual data; SAP blog, Universal Allocations – top-down distribution; SAP KBAs 3698995 and 3630324.

Step 4 of 9 · What happens

A cycle says what, from where and by which reference

The cycle ties it together: which sender to read, which data to use as reference and which template to apply. It is built once, run every month and maintained when accounts, customers or the business change.

Who: Controller, with the consultant.

Under the hood

Reference base mapping links sender to reference where their values differ, for example freight account 63100000 to revenue account 41000000; where they are the same, no mapping is needed. Without SAP Best Practices, check that CO business transaction AAAT has a number range.

  • AAAT
  • Ref base mapping

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

The KE28 selection, saved as a variant: actual data periods and record types, reference data, processing instructions, selection criteria (* for all values, # for not assigned) and the value fields to distribute.

  • KE28

SAP S/4HANA · Margin Analysis

Manage Allocations (F3338): Create, context Margin Analysis, type Top-Down Distribution, then a template. The cycle has a header, the sender, the receiver basis and the reference base mapping, and only one segment. TDD cycles are defined by ledger and controlling area, so one cycle can cover several company codes.

  • F3338

NextCycle TDD-FREIGHT: freight on Retail, distributed by revenue per customer.

Sources: SAP Help, top-down distribution in Universal Allocation; SAP blogs, Universal Allocation in SAP S/4HANA 2020 and top-down distribution in SAP S/4HANA; SAP Help, top-down distribution of actual data.

Step 5 of 9 · What happens

Reference data becomes percentages

The reference decides who carries how much. For freight it can be revenue, because bigger customers cause more deliveries, or quantities, because freight follows what is moved. It can come from the same month, from several months added together, or from the plan.

Who: Controller.

Under the hood

With a quantity basis, all reference line items need the same unit of measure. A retained characteristic must find reference data with the same value, or that sender is not distributed: KE28 reports it as KG323, Value could not be distributed.

  • KG323
  • QUANT1

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

Reference periods; actual data with a reference currency or plan data with a version; record types, with Cumulate Record Type to treat several as one; Cumulate Periods; one value field for all, each value field by its own, or a calculated key figure such as net revenue.

  • KE28

SAP S/4HANA · Margin Analysis

In the receiver basis: posted amounts or quantities of the reference accounts, actual or plan, for example the variable portion type QUANT1. Reference periods are chosen when you run the cycle and can be cumulated; the amounts and their reference can be in different periods.

  • F3338
  • QUANT1

NextA share per receiver: Sunmart 40%, NorthFresh 35%, CityGrocer 25%.

Sources: SAP Help, top-down distribution of actual data and calculated values as reference; SAP blog, top-down distribution in SAP S/4HANA; SAP Community, TDD in CO-PA; SAP KBA 3721999.

Step 6 of 9 · What happens

A test run shows the result and posts nothing

A test run computes every receiver and message without writing anything, so the shares can be checked before the month is closed. Large distributions are better run in the background.

Who: Controller.

Under the hood

A test run does not derive characteristics; the live run does. Derived fields such as the division look empty in the test and are filled after the live run.

  • F3548
  • KE28

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

KE28 with Test run selected simulates the distribution without changing the database. SAP recommends background processing for large numbers of profitability segments.

  • KE28

SAP S/4HANA · Margin Analysis

Run Allocations (F3548): test run or live run, one cycle or several, now or scheduled. SAP S/4HANA 2021 on-premise added a Calculate Records button that estimates the data volume a cycle will create.

  • F3548

NextA log with senders, receivers and messages.

Sources: SAP Help, top-down distribution of actual data; Michael Management, universal allocations; SAP blog, top-down distribution in SAP S/4HANA; SAP KBA 3646095.

Step 7 of 9 · What happens

The live run posts the distribution

The live run posts. The value at # is credited and each customer is debited with its share: the customer group keeps its 9,000.00, customer # drops to zero and each customer now carries freight.

Who: Controller.

Under the hood

Situation handling can flag runs with warnings or errors through the standard situation template FIN_ALLOCATION_RUN_WARNING_ERROR, scope item 31N.

  • FIN_ALLOCATION_RUN_WARNING_ERROR
  • 31N

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

KE28 writes CO-PA line items: a credit at the sender level and a debit per receiver. In costing-based CO-PA these are value field postings, outside the general ledger.

  • KE28
  • KE24

SAP S/4HANA · Margin Analysis

A journal entry in the Universal Journal with its own CO business transaction, AAAT. The amounts stay on the sender’s G/L account and keep its company code and profit center: G/L and profit center balances do not move, only the market segment does. Run Allocations can also reverse a run.

  • AAAT
  • ACDOCA
  • F3548

NextA journal entry: −9,000.00 on customer #, +3,600.00, +3,150.00 and +2,250.00 on the customers.

Sources: SAP Help, example of the credit at #; SAP blogs, Margin Analysis for sell from stock and top-down distribution in account-based CO-PA; Michael Management, universal allocations.

Step 8 of 9 · What happens

Check where every amount went

After the run, check the result from both ends: which senders were distributed, to whom, on which reference, and the journal entry behind it.

Who: Controller, auditors.

Under the hood

Allocation Flow (F4022) draws senders and receivers with their debit and credit amounts. Display Line Items – Margin Analysis before and after the run is the quickest proof that customer # emptied.

  • F4022

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

KE28L lists the top-down distribution runs with their senders and execution data; KE24 shows the CO-PA line items and KE30 the drilldown report.

  • KE28L
  • KE24
  • KE30

SAP S/4HANA · Margin Analysis

Allocation Results (F4363) shows a run as a network graph, as receivers only or as journal entries, and since 2020 also the reference data of a TDD result. Journal Entry Analyzer (F0956) and Display Line Items – Margin Analysis show the distributed journal entries.

  • F4363
  • F0956

NextA distribution you can trace back to its reference.

Sources: SAP blog, the KE28L log; SAP blogs, Universal Allocation in SAP S/4HANA 1909 and 2020; SAP Help, top-down distribution in Universal Allocation; SAP blog, Universal Allocations – top-down distribution.

Step 9 of 9 · What happens

Customer margins now carry the freight

The point of it all: margins per customer and product now include freight, advertising or bonuses that were posted without that detail. A customer that looked profitable before freight may rank differently after it.

Who: Sales controller, management.

Under the hood

Product Profitability and Display Line Items – Margin Analysis show only items with the profitability segment as real account assignment; analytical apps such as Market Segments also include attributed segments.

  • EO

Tables, Customizing and the settings behind this step are in the Consultant view.

SAP ECC · how it was done

KE30 drilldown reports by customer and product, on value fields in costing-based CO-PA or on cost elements in account-based CO-PA.

  • KE30

SAP S/4HANA · Margin Analysis

Market Segments – Actuals (F0943), Product Profitability (W0053) and Journal Entry Analyzer read the Universal Journal, so the distribution shows up as soon as it is posted.

  • F0943
  • W0053
  • F0956

NextFreight per customer and product, in every margin report.

Sources: SAP KBA 3095004; SAP blog, Fiori apps for sales; Pikon, Margin Analysis in SAP S/4HANA; SAP PRESS, Journal Entry Analyzer.

Two models, side by side

On the left, the chain as SAP ECC ran it, every step in the SAP GUI around KE28. On the right, SAP S/4HANA with Universal Allocation, where the rules live in a template, the run is an app and the result is a journal entry in the Universal Journal.

SAP ECC

  1. FB50Freight posted with a profitability segment
  2. KEU5Cost center costs assessed to CO-PA, if needed
  3. KEBCOperating concern and type: costing-based or account-based
  4. KE28Processing instructions, reference data, selection
  5. KE28Test run
  6. KE28Live run: CO-PA line items
  7. KE28LLogs of the runs
  8. KE30Margin by customer and product

SAP S/4HANA

  1. F0718Freight posted with a market segment (EO)
  2. F3338Allocation to Margin Analysis, if needed
  3. SPROTemplate for top-down distribution
  4. F3338TDD cycle, one segment
  5. F3548Test run
  6. F3548Live run: journal entry, AAAT
  7. F4363Allocation results and network graph
  8. F0943Margin by market segment

Sources: SAP Help, top-down distribution of actual data and top-down distribution in Universal Allocation; SAP blogs, Universal Allocation in SAP S/4HANA 1909 and 2020; SAPinsider, top-down distribution with account-based CO-PA.

Try it: top-down distribution

Distribute 9,000.00 of freight yourself

October’s freight sits on customer group 01 Retail with customer and product not assigned. Pick the reference and the level, then read the journal entry, the customer margins and the totals that never move. One surprise is built in: the same 9,000.00 ranks the customers differently depending on the reference. So are three classic traps.

Your cycle TDD-FREIGHT

Example: October revenue on account 41000000 as reference, distributed down to customer, no trap.

Examples only. One sender, one ledger, no tolerance; amounts rounded to the cent so that they add up to the 9,000.00.

The facts behind it

  • Sender: 9,000.00 on G/L 63100000 Outbound freight, company code 1010, profit center PC10, customer group 01 Retail, customer and product #.
  • Reference: October billing to Sunmart, NorthFresh and CityGrocer on revenue account 41000000. FG-500 sells at 3.00 a pack, FG-510 at 4.00. August to October adds two more months of the same customers.
  • Standard costs: 2.10 a pack for FG-500, 2.60 for FG-510.
  • Template TDCUSTOMER or TDPRODUCT&CUSTOMER. Reference base mapping: freight account 63100000 to revenue account 41000000.

1 · The reference becomes shares

Revenue on 41000000, October, by customer

ReceiverReferenceShare
Sunmart40,000.0040.0%
NorthFresh35,000.0035.0%
CityGrocer25,000.0025.0%
Total100,000.00100.0%

Revenue favours the customers that spend the most, whatever they buy.

2 · Totals that do not move

G/L 63100000 Outbound freight9,000.00 → 9,000.00

Customer group 01 Retail9,000.00 → 9,000.00

Customer # (not assigned)9,000.00 → 0.00

Customers 2001 to 20030.00 → 9,000.00

The G/L account and the customer group keep their 9,000.00. Only the customer level is filled in.

3 · October margin by customer, after freight

CustomerRevenueBefore freightFreightAfter freightMargin %
Sunmart40,000.0013,100.003,600.009,500.0023.8%
NorthFresh35,000.0010,900.003,150.007,750.0022.1%
CityGrocer25,000.008,000.002,250.005,750.0023.0%
Not assigned (#)——0.000.00—
Customer group 01 Retail100,000.0032,000.009,000.0023,000.0023.0%

This is the baseline: October revenue, by customer. Change the reference and watch the customer margins move while the group margin stays at 23,000.00.

4 · The journal entry the live run posts

Business transaction AAAT · period 10/2026 · 4 lines
G/L accountProfit centerCustomer groupCustomerProductAmount
63100000PC1001 Retail##−9,000.00
63100000PC1001 RetailSunmart#3,600.00
63100000PC1001 RetailNorthFresh#3,150.00
63100000PC1001 RetailCityGrocer#2,250.00

The credit clears customer #; every debit keeps the sender’s account, company code, profit center and customer group. In costing-based CO-PA the same split would be CO-PA line items on value field Freight, with no G/L document.

Simplified: one sender, one ledger, one period; the margin uses October revenue and standard cost of goods sold. Sources: SAP Help, top-down distribution in Universal Allocation and templates; SAP Help, example of the credit at # and the debits per receiver; SAP blogs, top-down distribution in SAP S/4HANA and in account-based CO-PA; SAP KBA 3583697; SAP Community, KG323.

Account-based and costing-based

The same freight in the two kinds of CO-PA

SAP S/4HANA still supports costing-based CO-PA next to Margin Analysis, the account-based kind SAP recommends. TDD exists in both, but it reads, matches and posts different things. Pick a side to see the example in its own terms, then compare them line by line.

Margin Analysis, account-based. The freight is a G/L account, the reference is another G/L account, and the result is a journal entry in the Universal Journal.

Costing-based CO-PA. The freight is a value field, the reference is another value field or a key figure, and the result lives only in the operating concern’s own tables.

  • 01

    What is distributed

    G/L account 63100000 Outbound freight, on a real profitability segment with customer #.

    • 63100000
    • EO
  • 02

    By what

    The revenue account 41000000, linked in the reference base mapping, or a quantity field such as QUANT1.

    • 41000000
    • QUANT1
  • 03

    What is posted

    One journal entry in ACDOCA with business transaction AAAT, on the same G/L account.

    • ACDOCA
    • AAAT
  • 04

    What it touches

    Only the market segment fields. G/L, company code and profit center balances stay the same, and FI and CO stay reconciled.

    • F0956
  • 01

    What is distributed

    Value field Freight, filled from the account by the PA transfer structure, at customer #, record type by record type.

    • KE28
    • CE1xxxx
  • 02

    By what

    One value field for all, such as Revenue, each value field by itself, or a calculated key figure such as net revenue.

    • Key figure
  • 03

    What is posted

    CO-PA line items: a credit at # and a debit per receiver.

    • KE24
  • 04

    What it touches

    Only costing-based CO-PA. There is no G/L document, so the split is not visible by G/L account.

    • KE30
TopicCosting-based CO-PAMargin Analysis (account-based)
Values live inValue fields; line items in CE1xxxx, profitability segments in CE4xxxxG/L accounts in ACDOCA, the Universal Journal
Reference baseOne value field, all value fields, or a calculated key figureAmounts or quantities of the reference accounts
Sender to referenceCharacteristics set to Retain, plus record typesRetained and Relevant to Reference fields, plus reference base mapping
Where you run itKE28, after KEBC sets the typeManage Allocations and Run Allocations; KE28 also works for account-based CO-PA
ResultCO-PA line itemsJournal entry, business transaction AAAT, on the sender’s account
Reconciled with FINo: a separate set of tablesYes: the same table as the G/L
Plan dataAutomatic planning method Top-down distribution in KEPMUniversal Allocation TDD is for actual data
Data volumeSummarization levels, distribute only the value fields neededTolerance in the template, Calculate Records before the run
LogsKE28LAllocation Results and Allocation Flow
FutureStill supported in SAP S/4HANA, with no new functionsWhere SAP puts its innovations

Sources: SAP Help, top-down distribution of actual data, calculated values as reference and top-down distribution in Universal Allocation; SAP Learning, planning methods and direct postings from FI; SAPinsider, top-down distribution with account-based CO-PA; SAP blogs, real-time derivation in Margin Analysis and Margin Analysis for sell from stock; SAP Community, has account-based CO-PA evolved enough; SAP KBA 3646095.

ECC to S/4HANA

What changed in top-down distribution with SAP S/4HANA

The idea did not change: credit the unassigned value, debit the detail by a reference. What changed is where it runs, what it posts, what it can read and what you check afterwards.

Troubleshooting

Why was nothing distributed? Twelve classics

The messages and surprises users meet most in KE28 and in Manage Allocations, taken from SAP knowledge base articles and the SAP Community. Guess the cause, then open the card to check.

  • KE28
  • Manage Allocations
  • Run Allocations
  • Both
  • KG323Value could not be distributedShow the cause
    KE28

    A characteristic set to Retain has a value in the sender that does not exist in the reference data, such as a profit center or the controlling area. Blank in both is fine; different values are not. Start with the first entry of the log, which names the segment.

    Source: SAP Community, top-down distribution in CO-PA
  • EOMy posting is simply ignoredShow the cause
    Manage Allocations

    Top-down distribution considers only items whose account assignment is the profitability segment, EO. Add the Account Assignment column in Market Segments – Actuals: anything else is not a sender or a reference. Costs on cost centers go through an allocation to Margin Analysis first.

    Source: SAP KBA 3583697, TDD only considers EO
  • #Customer values did not moveShow the cause
    Both

    In actual distribution only unassigned data is distributed. Values already posted with a customer are never redistributed, whatever the cycle says.

    Source: SAP Learning, other actual postings in CO-PA
  • FINS_TDD/027Value cannot connect sender and reference dataShow the cause
    Manage Allocations

    A field linking sender and reference has a value that cannot connect them. Set it with the Reference Base button for that field in the receiver basis.

    Source: SAP KBA 3535509, FINS_TDD 027
  • CO areaInvalid assignment between controlling area and operating concernShow the cause
    Run Allocations

    Raised only for TDD cycles: the template belongs to another operating concern. Create a template for the right operating concern and a new cycle based on it.

    Source: SAP KBA 3779254, controlling area and operating concern
  • TemplateThere is no template to chooseShow the cause
    Manage Allocations

    SAP KBA 3698995 covers the standard templates TDPRODUCT, TDCUSTOMER and TDPRODUCT&CUSTOMER missing in Manage Allocations on-premise. Your own templates are defined in Customizing under Define Template for Top-Down Distribution.

    Source: SAP KBA 3698995, TDD templates missing in F3338
  • DerivationDerived fields are empty in the test runShow the cause
    Run Allocations

    Expected behaviour: a test run does not derive characteristics; the live run does.

    Source: SAP KBA 3646095, FAQ top-down distribution
  • TransportThe cycle is missing in productionShow the cause
    Manage Allocations

    Universal Allocation TDD cycles cannot be transported with Manage Allocations, and they cannot be uploaded from the Excel template either. Build them in each system; Copy speeds up similar cycles.

    Source: SAP KBA 3646095, FAQ top-down distribution
  • KG133Completed successfully, but nothing postedShow the cause
    KE28

    SAP’s TDD FAQ lists this among the most asked questions. One SAP Community walkthrough traces such a case to reference data whose totals for the retained values were zero, which it checks in KE24.

    Source: SAP Community, top-down distribution in CO-PA
  • KG338No entries exist, in account-based CO-PAShow the cause
    KE28

    A frequent SAP Community question. In account-based CO-PA the account must be part of the selection criteria, and actual and reference periods must actually hold postings on the selected values.

    Source: SAP Community, has account-based CO-PA evolved enough?
  • MANAGE_ALLOC/015The From value is not smaller than the To valueShow the cause
    Manage Allocations

    Raised when saving a TDD cycle with a numerical characteristic, such as a reporting year; SAP KBA 3699780 ties it to the field’s conversion routine.

    Source: SAP KBA 3699780, MANAGE_ALLOC 015
  • PeriodsOnly December was distributedShow the cause
    Run Allocations

    A run distributes the senders of the period it runs for. SAP KBA 3735822 covers a December vendor credit that users expected to reach earlier periods.

    Source: SAP KBA 3735822, TDD applied only to December

Speak TDD

The words and codes you will see on the way

The words in the template, the options in KE28 and the codes behind the result, from the field categories to the messages users search for most.

In a Universal Allocation template, every characteristic gets one of four categories. Company code and profit center are always in the template and cannot be removed.

In KE28, each characteristic is processed in one of three ways, and the selection criteria restrict what is read.

What the ratio is calculated from, and over which periods.

In Manage Allocations, a TDD cycle is defined by ledger and controlling area and has exactly one segment.

Where the distribution is written and how the system recognises a sender.

The ones users search for most. The section “Why was nothing distributed?” explains each one.

  • 1DistributedThe level the amount goes down to. Its value in the result is filled from the reference data. Shown as D in the template.
  • 2SummarizedCleared after sender and reference are selected, so both are summarized; empty in the result unless a derivation fills it.
  • 3Retained and Relevant to ReferenceKept from the sender and used to link the sender to its reference data.
  • 4Retained but Irrelevant to ReferenceKept from the sender, but not used to link it to the reference.
  • TolToleranceOptional. Filters out distribution results with a small value.
  • UIHidden on UIHides a field from the segment’s selection; its rule still applies.
  • DistDistribution levelThe level to which the data is distributed.
  • RetRetain (copy)The value stays as posted; sender and reference must match on it.
  • SumSummarizeValues are aggregated; the only characteristics derived again.
  • *All valuesThe default selection: every value of that characteristic.
  • #Not assignedThe empty value TDD distributes away; selectable as #.
  • TestTest runSimulates the run without changing the database.
  • ActActual or planActual data needs a reference currency; plan data a version.
  • CumCumulate periodsAdds the reference periods together and splits by the total.
  • RTCumulate record typeTreats several record types as one; without it, record types pair one to one.
  • VFSingle value fieldOne value field or key figure drives the distribution of all value fields.
  • KeyCalculated key figureA formula of value fields, for example net revenue = revenue − discounts.
  • QUANT1Additional quantityA quantity field as reference in Margin Analysis, with one unit of measure.
  • HeadHeaderCycle, validity, ledger, controlling area and template.
  • SndSenderWhat to distribute: accounts or an account group, plus the retained values.
  • RcvReceiver basisThe reference: posted amounts or quantities on the reference accounts.
  • MapReference base mappingLinks sender values to different reference values, such as 63100000 to 41000000.
  • 1One segmentOnly one segment per TDD cycle, unlike other allocation types.
  • RunRunTest, live or scheduled in Run Allocations, which can also reverse a run.
  • EOReal profitability segmentAccount assignment type in ACDOCA-ACCASTY that makes an item a sender or reference.
  • AAATCO business transactionBusiness transaction of TDD in Universal Allocation; needs a number range.
  • ACDOCAUniversal JournalActual Margin Analysis data and the TDD journal entry.
  • ACDOCPPlan line itemsPlan data, usable as reference.
  • CE1xxxxCosting-based line itemsWhere KE28 writes in costing-based CO-PA; xxxx is the operating concern.
  • CE4xxxxProfitability segmentsSegment table KE28 reads, with CE3xxxx.
  • KG323Value could not be distributedA retained value of the sender has no reference.
  • KG338No entries existThe selection found no data.
  • KG133Editing has been completed successfullyCan appear even when nothing was posted.
  • FINS_TDD/027Cannot connect sender and referenceA linking field needs its reference base.
  • MANAGE_ALLOC/015From value not smaller than To valueA numerical characteristic in a TDD cycle.
  • FINS_ONE_ALLOCATION059Template field configurationA field set to D (Distributed) that the template does not accept.

Sources: SAP Help, defining top-down distribution templates; SAP blog, Universal Allocations – top-down distribution; SAP KBA 3716540.

Sources: SAP Help, top-down distribution of actual data; SAP Community, TDD in CO-PA and in account-based CO-PA.

Sources: SAP Help, top-down distribution of actual data and calculated values as reference; SAP blog, top-down distribution in SAP S/4HANA; SAP KBA 3721999.

Sources: SAP Help, top-down distribution in Universal Allocation; SAP blog, Universal Allocations – top-down distribution; SAP FICO Corner.

Sources: SAP blog, Margin Analysis for sell from stock; SAP blog, CO account assignment; SAP KBA 3646095; SAP blog, top-down distribution in SAP S/4HANA.

Sources: SAP KBAs 3454791, 3646095, 3535509, 3699780 and 3716540; SAP Community, KG338.

KEU5 · KE28 · KEND

Three tools that get mixed up, three jobs. An assessment such as KEU5 moves cost center costs into CO-PA and empties the cost center. Top-down distribution, KE28, fills in missing characteristics and keeps the totals of the levels above. Realignment, KEND, moves no money at all: it changes the characteristic values of profitability segments that already exist, after a master data change. Source: SAP Help, realignment

Reference

Every transaction and app around top-down distribution

From the posting to the margin report, plus the Customizing, tables and messages behind it. Filter by area, then by audience; Start here shows the ones worth bookmarking. The last column says where each one runs. Type a code or a word to search all of them.

Code or appAreaWhat it doesWho opens itWhere it runs
KE28CO-PA · Actual · periodic adjustmentsTop-down distribution of actual data: selection, processing instructions, reference, test run and live run. Works for costing-based and account-based CO-PA.UserECC and S/4HANA
KE28LCO-PA · Actual · logsLogs of the top-down distribution runs, with senders and execution data.UserECC and S/4HANA
KE28TCO-PA · Actual · settingsTechnical settings for top-down distribution.ConsultantECC and S/4HANA
KEBCCO-PA · EnvironmentSets the operating concern and the type, costing-based or account-based, that KE28 works on.UserECC and S/4HANA
KE24Reporting · Line itemsActual line items; in Margin Analysis only items on profitability segments (EO).UserECC and S/4HANA
KE23Reporting · Line itemsPlan line items.UserECC and S/4HANA
KE30Reporting · Drilldown reportingProfitability reports by customer, product and other characteristics.UserECC and S/4HANA
KEPMCO-PA · PlanningSales and profit planning; Top-down distribution is one of its automatic planning methods in costing-based CO-PA.UserECC and S/4HANA
KEU5CO-PA · Actual · assessment to CO-PAAssessment of cost center costs to CO-PA, the classic step before KE28 for costs on cost centers.UserECC and S/4HANA
KENDCO-PA · Master data · realignmentRealignment: changes characteristic values of existing profitability segments; for account-based CO-PA in SAP S/4HANA since 1610.ConsultantECC and S/4HANA
KEDVCO-PA · Tools · summarization levelsSummarization levels, which KE28 can read instead of line items in costing-based CO-PA.ConsultantCosting-based CO-PA
KEA0Customizing · StructuresMaintain operating concern; custom characteristics used as TDD receivers must exist here.ConsultantECC and S/4HANA
KEA5Customizing · StructuresMaintain characteristics.ConsultantECC and S/4HANA
KANKCustomizing · Number rangesNumber range for object KTDA, needed for account-based TDD in SAP ERP.ConsultantECC
RKTKA04CCustomizing · Program (SE38)Run once before the first account-based top-down distribution in SAP ERP.ConsultantECC
FB50Posting · G/L postingPosts a G/L entry, such as freight, with a profitability segment.UserECC and S/4HANA
F0718Posting · Post General Journal EntriesPosts the freight with a market segment on the P&L line.Fiori appS/4HANA
F3338Universal Allocation · Manage AllocationsCreates the TDD cycle: context Margin Analysis, type Top-Down Distribution, template, sender, receiver basis and reference base mapping.Fiori appS/4HANA
F3548Universal Allocation · Run AllocationsTest run, live run, scheduling and reversal of cycles.Fiori appS/4HANA
F4363Universal Allocation · Allocation ResultsRuns by run or by cycle: network graph, receivers, journal entries and the reference data of a TDD result.Fiori appS/4HANA
F4022Universal Allocation · Allocation FlowSenders and receivers with their debit and credit amounts.Fiori appS/4HANA
F4935Universal Allocation · Manage Cycle Run GroupsGroups cycles to run one after another or in parallel.Fiori appS/4HANA
F2918Universal Allocation · Manage Global HierarchiesCycle groups, to run several cycles together.Fiori appS/4HANA
F0956Reporting · Journal Entry AnalyzerAnalyzes the distributed journal entries in the Universal Journal.Fiori appS/4HANA
F0943Reporting · Market Segments – ActualsMargins by market segment, including attributed segments; add Account Assignment to see EO.Fiori appS/4HANA
W0053Reporting · Product ProfitabilityMargin by product, on real profitability segments.Fiori appS/4HANA
Display Line Items – Margin AnalysisReporting · Line itemsJournal entry items with their market segment, before and after the run.Fiori appS/4HANA
Define Template for Top-Down DistributionCustomizing · Profitability Analysis › Flows of Actual Values › Periodic AdjustmentsTemplates with the four field categories and the tolerance.ConsultantS/4HANA
150005Customizing · Configuration step (SSCUI)Define Template for Top-Down Distribution in the public cloud.ConsultantPublic Cloud
Calculated Values as ReferenceCustomizing · Costing-based CO-PAKey figures from value fields, such as net revenue, used as the reference.ConsultantCosting-based CO-PA
AAATCustomizing · CO business transactionBusiness transaction of Universal Allocation TDD; must have a number range.ConsultantS/4HANA
J55Customizing · Best Practices scope itemSAP Best Practices Margin Analysis, with the standard TDD templates and test script.ConsultantS/4HANA
2QLCustomizing · Best Practices scope itemSAP Best Practices Universal Allocation.ConsultantS/4HANA
31NCustomizing · Best Practices scope itemSituation handling; template FIN_ALLOCATION_RUN_WARNING_ERROR flags TDD runs.ConsultantS/4HANA
ACDOCATables and messages · Universal JournalActual Margin Analysis data and the TDD journal entries.TableS/4HANA
ACCASTYTables and messages · Field in ACDOCAAccount assignment type; EO is a real profitability segment.TableS/4HANA
ACDOCPTables and messages · Plan line itemsPlan data, usable as reference data.TableS/4HANA
CE1xxxxTables and messages · Costing-based line itemsLine items of costing-based CO-PA, where KE28 writes; xxxx is the operating concern.TableCosting-based CO-PA
CE4xxxxTables and messages · Profitability segmentsSegment table KE28 reads, with CE3xxxx.TableECC and S/4HANA
KG323Tables and messages · KE28Value could not be distributed: a retained value of the sender has no reference.MessageECC and S/4HANA
KG338Tables and messages · KE28No entries exist.MessageECC and S/4HANA
KG133Tables and messages · KE28Editing has been completed successfully, also when nothing was posted.MessageECC and S/4HANA
FINS_TDD/027Tables and messages · Manage AllocationsA field cannot connect sender and reference data.MessageS/4HANA
MANAGE_ALLOC/015Tables and messages · Manage AllocationsThe From value is not smaller than the To value, with a numerical characteristic.MessageS/4HANA

Codes and app IDs cross-checked with SAP Help, SAP Learning, SAP blogs on Universal Allocation, SAP KBAs and ERPlingo. Universal Allocation TDD arrived with SAP S/4HANA 1909 FPS01. Projects can hide transactions or rename apps, so check your own system before writing them into a manual.

Documented, but little known

19 tips most people never hear about

Each tip comes from SAP Help, SAP Learning, an SAP KBA, an SAP blog or a consultant’s documented walkthrough, linked under the tip.

Myths

Things people get wrong about top-down distribution

  • MythTop-down distribution empties the sender, like an assessment.

    FactIt keeps the total at the higher level. It credits the value at # and debits the detailed segments: the customer group still shows the same amount.

  • MythTDD only works with costing-based CO-PA.

    FactOld SAP Help said so. KE28 also works with account-based CO-PA, already in SAP ERP, and SAP S/4HANA redesigned TDD for Margin Analysis in Universal Allocation.

  • MythA distribution changes the P&L.

    FactIn Margin Analysis the amounts stay on the same G/L account, company code and profit center. Only the market segment fields change.

  • MythTDD can spread freight across company codes.

    FactActual TDD cannot cross company codes, business areas, profit centers, segments or functional areas. Another company code’s sales can be the reference through mapping; the postings stay with the sender.

  • MythTDD can redistribute values that already have a customer.

    FactIn actual distribution only unassigned data is distributed. Only plan distribution in CO-PA planning offers to distribute the total value.

  • MythManage Allocations distributes plan data top-down too.

    FactIn Universal Allocation, TDD is for actual data. Plan top-down distribution is an automatic planning method of costing-based CO-PA.

  • MythThe test run shows exactly what the live run will post.

    FactThe live run also derives characteristics; the test run does not.

  • MythTop-down distribution and realignment are the same thing.

    FactRealignment changes the characteristic values of existing profitability segments and posts no amounts. TDD posts amounts from # to the detail.

Evolution

From KE28 on R/3 to Universal Allocation

For decades top-down distribution was a KE28 job. SAP S/4HANA put it on the Universal Journal and into the same apps as every other allocation. Gold dots mark the SAP S/4HANA era.

  1. 3.0SAP R/3Top-down distribution is standard SAP functionality from R/3 3.0 onward.
  2. 4.xSAP R/3SAP Help for 4.6C and 4.70 documents top-down distribution of actual data, with processing instructions and reference data, as a costing-based function.
  3. 2015SAP ERPAn SAPinsider article shows KE28 working with account-based CO-PA in SAP ERP, with cost elements as the reference base.
  4. 2015+S/4HANA FinanceSAP KBAs document KE28 for account-based CO-PA on the Universal Journal, ACDOCA.
  5. 1610RealignmentRealignment arrives for account-based CO-PA in SAP S/4HANA.
  6. 1909FPS01Manage Allocations gets the Margin Analysis context and the Top-Down Distribution type; the Allocation Results app is released.
  7. 2020Allocation FlowThe Allocation Flow app arrives, and Allocation Results shows TDD in its network graph, with the reference data behind each result.
  8. 2021Allocation to Margin AnalysisAllocation to Margin Analysis for actual and plan data, the Calculate Records estimate on-premise and the Manage Cycle Run Groups app.
  9. 2022Allocation tagsAllocation tags; the new Advanced Financial Closing template supports every allocation type except top-down distribution.

SAP’s own example, from SAP Help

Sales quantity of 600 on each product group, distributed by last year’s quantities: PG1 by 10 : 30, PG2 by 40 : 40.

GroupProductLine item
PG1#−600
PG1P1150
PG1P2450
PG2#−600
PG2P3300
PG2P4300

Product # drops from 1,200 to 0; each product group still totals 600. Source: SAP Help, example of selection criteria and processing instructions.

Where the data lives

Costing-basedMargin Analysis
CE1xxxx line itemsACDOCA journal entry items
CE4xxxx profitability segmentsMarket segment fields in ACDOCA
Value fieldsG/L accounts
Record typesBusiness transaction types, AAAT for TDD

xxxx is the operating concern. Sources: SAP KBA 3646095; Consilio, Margin Analysis in SAP S/4HANA; SAP blog, Margin Analysis for sell from stock.

Sources: SAPinsider, TDD for overhead at lower levels and TDD with account-based CO-PA; SAP Help 4.70, top-down distribution of actual data; SAP KBAs 2236046 and 2176823; SAPinsider, realignment in account-based CO-PA; SAP blogs, Universal Allocation in SAP S/4HANA 1909, 2020, 2021 and 2022; SAP blog, top-down distribution in SAP S/4HANA.

The questions people ask most

What is top-down distribution in SAP?

A periodic CO-PA function that distributes values posted at a higher level, such as a customer group, product group or company code, to a more detailed level, such as customer and product, in proportion to reference data. In SAP S/4HANA it is part of Margin Analysis and runs in Universal Allocation.

How is top-down distribution different from an assessment or allocation?

An allocation credits the sending object and debits other objects. Top-down distribution keeps the amount on the same account and the same higher-level characteristics: it credits the value at # and debits the detailed segments, so the total at the higher level does not change.

Which transaction runs top-down distribution?

In SAP ECC, KE28, after KEBC sets the operating concern and the type; KE28L shows the logs. In SAP S/4HANA, Manage Allocations (F3338) defines the cycle, Run Allocations (F3548) runs it and Allocation Results (F4363) shows the result. KE28 is still in the system.

Does top-down distribution work with Margin Analysis?

Yes. KE28 supports account-based CO-PA, with accounts as the reference base, and the Universal Allocation version in SAP S/4HANA was built for Margin Analysis and posts journal entries.

What can I use as reference data?

Actual or plan data, from one period or several cumulated. In costing-based CO-PA one value field, every value field by itself or a calculated key figure; in Margin Analysis amounts or quantities on the reference accounts, with one unit of measure for quantities.

What does KG323 Value could not be distributed mean?

A characteristic set to Retain has a value in the sender that does not exist in the reference data, for example a different profit center. The first entry of the log names the segment. In Manage Allocations the same case is solved with the reference base mapping.

Why is my posting not distributed?

Check five things: the item has a real profitability segment (EO); the target characteristic is still # (only unassigned data is distributed); every retained value exists in the reference; accounts that differ are mapped; and the run covers the period of the posting.

Can top-down distribution handle plan data?

In costing-based CO-PA planning, yes: top-down distribution is an automatic planning method, which distributes either only the unassigned values or the total value. Universal Allocation TDD in SAP S/4HANA is for actual data.

Does top-down distribution change the general ledger?

In Margin Analysis it posts a journal entry, but on the sender’s G/L account and with its company code and profit center, so G/L and profit center balances stay the same; only the market segment changes. In costing-based CO-PA there is no G/L document at all.

Can I reverse a top-down distribution run?

In SAP S/4HANA, Run Allocations can reverse an existing run, after which you correct the cycle or the reference and run it again.

Why does top-down distribution create so many line items?

Every combination in the reference data receives a line, and every retained characteristic multiplies them. Keep the retained fields to what reports need, use the template tolerance, and assess cost center costs to a few segments before distributing.

Can I transport TDD cycles?

Not with Manage Allocations, and they cannot be uploaded from the Excel template either. Create them in each system; the Copy function speeds up similar cycles.

Can one cycle cover several company codes?

Yes, TDD cycles are defined by ledger and controlling area. The distribution itself stays inside each company code and profit center: it never moves values from one to another.

Is costing-based CO-PA still supported in SAP S/4HANA?

Yes, it is still supported, with the same data model as in SAP ERP, but SAP recommends Margin Analysis, which is where new functions go.

References

Checked in November 2026. SAP knowledge base articles and SAP Notes need an SAP for Me login. Releases, app IDs and templates change; check them in your own system.