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The distribution rule is part of the settlement rule. You specify the following for a settlement sender:

  • Settlement receiver

  • Settlement share (percentage or proportional)

  • Settlement type (periodic or cumulative)

  • Validity of the distribution rule

    Note Note

    You can change a distribution rule that was created automatically during order creation.

    You cannot delete a distribution rule that was created automatically. To invalidate a distribution rule that was created automatically, set the settlement share to zero percent. You can change or delete manual distribution rules before you settle.

    End of the note.


The distribution rule is made up of a settlement receiver, a settlement share, and a settlement type:

  • The settlement receiver is the object to which the actual costs of the product cost collector are to be settled . Examples of settlement receivers in Cost Object Controlling :

    • The material

    • A profitability segment in Profitability Analysis (CO-PA)

      You specify which settlement receivers are allowed in the settlement profile. You specify the settlement profile as a default value in the order type.

  • The settlement share defines the percentage or the equivalence numbers used to distribute the costs to the individual settlement receivers. For settlement to material, a settlement share of 100% is preset. In joint production, it would be possible to use proportional settlement to multiple materials in accordance with the settings of the apportionment structure in the material master record.

  • The settlement type determines whether an order managed by period or by lot.


The first settlement rule is generated when you create an order. This settlement rule is generated on the basis of the default rule. The distribution rule in the settlement rule is:

  • With default rule PP1 (Production Material Full Settlement): 100% to material FUL (full)

    This default rule is normally used for manufacturing orders.

  • With default rule PP2 (Production Material Periodic Settlement): 100% to material PER (periodic)

    This default rule can be used for manufacturing orders.

  • With default rule STR (With Strategy for Tracing Factor Determination): 100% to material PER (periodic)

    This default rule is used for product cost collectors.

    If you have collected the costs of materials on a product cost collector and these materials are assigned to different valuation types or divided into stock segments by value (make-to-stock-inventory and valuated sales order stock), the system generates the distribution rule dynamically during settlement based on the default rule STR (with strategy for tracing factor determination) by creating equivalence numbers in accordance with the delivery values of the period.

    Note Note

    You cannot manually change the settlement rule for the product cost collector.

    End of the note.

If you are using Profitability Analysis (CO-PA), the first settlement of an order generates a second settlement rule for settlement to a profitability segment. For this to happen, you must allow settlement to a profitability segment in the settlement profile.

See also:

Settlement in Product Cost by Order or Period