During settlement, costs incurred under the
primary and secondary
cost elements by a sender are allocated to one or more receivers.
When you settle by cost element, you settle using the appropriate original
allocation structure comprises one or several settlement
assignments. An assignment shows which costs (origin: cost element groups from
debit cost elements) are to be settled to which receiver type (for example,
cost center, order, and so on).
You have two alternatives in settlement
- You assign the debit cost element groups to a
settlement cost element.
- You settle by cost element - that is, the
debit cost element is the settlement cost element.
This is a good idea,
for example, if the required capital spending for an asset you are building
yourself is to be monitored. These costs are settled by cost element to an
inventory account in Asset Accounting at the end of the year, or when the
measure is complete.
Each allocation structure must fulfil the
structure is assigned to each object to be settled. All cost elements in which
costs are incurred, must be represented in the appropriate allocation
Each cost element in
which costs are incurred may only appear once in an allocation structure. Only
one settlement cost element may be assigned to a source within a particular
If you require additional debit- or settlement
cost elements, you can create these using the function
Maintain Settlement Cost Elements.
When you settle to materials you do not need to
create settlement cost elements.
You create an allocation structure as
New entries and issue identification code and a description
for your allocation structure.
Assignments to create a settlement assignment.
New entries and create one or more settlement assigments for
your settlement structure.
the settlement assignment required and choose
Specify the cost
elements or the cost element group that are to be settled to particular
senders using the same settlement cost element.
If you specify cost
element groups assigned to your controlling area, but not yet in the account
plan, you can use this opportunity to create them.
5. By choosing
settlement cost element you have two
- You assign a category to the source by
- Choose "By cost element" for the receiver
categories that you wish to settle by cost element (debit cost element =
settlement cost element).
performance, use as few differing settlement cost elements as possible. You
should try to use settlement by cost element as sparingly as
To obtain a hierarchy listing of an allocation
structure from the system , choose "Extras -> Overview list" in the
allocation structures overview.