In which allocation context can top-down distribution be used?

Comprehensive and Detailed Explanation From SAP S/4HANA Cloud Public Edition, Management Accounting documents:

Top-down distribution is a specialized allocation tool designed specifically for the Margin Analysis (profitability) context47474747. Its purpose is to take costs or revenues that were initially posted at a higher, more aggregated level—such as a general overhead or a broad sales deduction—and distribute them to more granular profitability segments48.

For example, a marketing expense posted to a "National" segment could be distributed down to specific "Product Groups" or "Customer Regions" based on actual sales data49. This provides a more accurate view of profitability at lower levels of the organization50. It is not used as a tool within the Cost Center or Profit Center contexts51.