Hi Aryan,
The receiving tracing factor determines how the values on sender are distributed to receivers.
For example, you defined cost center A as sender, cost center B and C as receivers. Variable portions as the receiver rule.
Then in receiving tracing factor tab, you define actual statistical key figure(SKF) as the tracing factor.
Then the posted costs on A will be allocated to B&C according to the portion of actual SKF on the 2 receiver cost centers.
Regards,
Sean