Settlement of Sales Order Items 
Use
Settlement serves the following purposes:
Transfers the results analysis data to CO-PA, FI, and EC-PCA as follows:
The revenue, cost of sales, and reserves for imminent loss for the sales order item are transferred to CO-PA by period.
The work in process, reserves for unrealized costs, reserves for the cost of complaints, and reserves for imminent loss for the sales order item are transferred to FI and EC-PCA by period.
Transfers the costs and revenues posted on a sales order item to further application components
Integration
You can use the Schedule Manager to assist you in performing the period-end closing activities. For more information, refer to the following sections:
Note
You cannot use the multilevel worklist of the Schedule Manager in the Product Cost by Sales Order component.
If the sales order item has no results analysis key, the settlement process accomplishes the following:
If CO-PA is active, settlement transfers the costs and revenues of the sales order item to a profitability segment in CO-PA
If CO-PA is not active, settlement transfers the costs and revenues of the sales order item to a G/L account in FI.
If you have performed results analysis, the settlement process transfers the following results analysis data by period:
You can settle the following results analysis data to FI and EC-PCA:
Inventory values
Reserves for unrealized costs
Reserves for imminent loss
Reserves for complaints and commissions
The cost of sales (if you are using a nonvaluated sales order stock and are balancing in FI using the cost-of-sales accounting method)
You can settle the following data to CO-PA and EC-PCA:
Cost of sales or calculated revenue
Reserves for imminent loss and complaints
The work in process to FI and EC-PCA
The reserves for unrealized costs or complaints to FI and EC-PCA
The reserves for imminent loss to FI, EC-PCA, and CO-PA
The costs and revenues relevant to the profit to CO-PA
Note
The data is transferred to FI and EC-PCA when you settle.
If the sales order item has a results analysis key but you have not performed results analysis, the system does not settle anything.
Prerequisites
If CO-PA is active, the system generates a settlement rule when you create the sales order. The settlement rule determines whether data is settled to other objects or other areas in Controlling . In accordance with this settlement rule, the relevant data is settled to CO-PA.
If CO-PA is not active, create a settlement rule. This settlement rule that you create manually normally contains a G/L account as a receiver (such as 399999). You can also settle costs and revenues or results analysis data to objects with revenue.
Note
You can also settle the cost of sales calculated in results analysis to a fixed asset or a cost center. To do this, you must add to the allocation structure the results analysis cost elements under which the cost of sales is updated to the order.
The settlement rule includes a distribution rule for the sales order item. The distribution rule is made up of a settlement receiver, a settlement share, and a settlement type:
The settlement receiver (such as profitability segment or G/L account) specifies the object to which the actual costs and revenue of the sales order item are settled. The settlement receiver can be proposed through the settlement profile.
The settlement share defines the percentage or the equivalence numbers used to distribute the costs to the individual settlement receivers. The settlement share for sales order items is usually 100%. A settlement share of 100% is preset in the system.
The settlement type specifies full settlement of the sales order item. This ensures that all the data on the sales order is available for results analysis.
Settlement still takes place in each period. The revenues and the cost of sales are transferred to CO-PA by period, and the work in process and the reserves are transferred to FI.
Prerequisites for Settlement to CO-PA
For a sales order item to be settled to CO-PA, you must enter valid settlement parameters for the item. Such settlement parameters include a settlement profile, an allocation structure, and a PA transfer structure. Carry out the following steps in
Customizing
for
Product Cost Controlling
under
Cost Object Controlling
Product Cost by Sales Order
Period-End Closing
Settlement
:
Defining Settlement Profiles
The settlement profile determines the settlement receivers (such as profitability segment or G/L account) to which the order can be settled.
The following default values are stored in the settlement profile:
Allocation structure
PA transfer structure
Source structure
The settlement profile is defaulted through the requirements class.
If you are settling the costs and revenues to a profitability segment or G/L account, you must define an allocation structure.
The allocation structure determines which costs and revenues are settled to the settlement receiver. It splits the debit cost elements and the revenue elements according to settlement assignments and assigns the settlement assignment to a settlement cost element.
Note the following when defining an allocation structure:
Every debit cost element and results analysis cost element must be included in the allocation structure.
Each debit cost element and results analysis cost element can only be assigned to one settlement cost element.
If you settle to a profitability segment, then:
The characteristics (profitability segment) in the settlement rule and the assignment to the value fields in the PA transfer structure determine which object is debited
The settlement cost element in the allocation structure determines the cost element under which the sales order item is credited
If you settle to a G/L account, then:
The settlement receiver in the settlement rule determines which G/L account is debited
The settlement cost element in the allocation structure determines which G/L account is credited
The settlement cost element in the allocation structure determines the cost element under which the credit is updated on the sales order item
Make sure that all cost elements are included in the allocation structure, including the results analysis cost elements.
Defining PA Settlement Structures
To be able to pass the cost of sales, the reserves for imminent loss, and the revenue to CO-PA, you must do the following:
Define a PA transfer structure that groups the results analysis cost elements for this data according to value field assignments.
Assign the value field assignments to the value fields of an operating concern.
Define a settlement profile for the sales order item that proposes the PA transfer structure you defined.
The PA transfer structure determines what costs and revenues are settled to CO-PA. It divides the debit cost elements according to assignment lines and assigns the assignment lines to the value fields of an operating concern.
A PA transfer structure consists of one or more items called assignment lines . You assign cost element groups to these assignment lines. In Customizing for CO-PA, you then assign the assignment lines to value fields.
When you define the PA transfer structure, make sure that it includes every debit cost element and every results analysis cost element.
Prerequisites for Transferring a Cost Component Split
You can transfer a cost component split to CO-PA if the inventory is valuated on the basis of:
The standard cost estimate for the material
Make the required settings in Customizing for
Profitability Analysis
under
Controlling
Profitability Analysis
Master Data
Valuation
Set Up Valuation Using Material Cost Estimates
Define Keys for Accessing Material Cost Estimates
.
You do not transfer a cost component split to CO-PA if the inventory is valuated on the basis of:
A preliminary cost estimate for the production order or process order
A product cost estimate for the sales order item that was modified with the functions of unit costing (refer to: Postprocessing Product Cost Estimates with Unit Costing )
Prerequisites for Settling to FI
To be able to settle capitalized costs, revenues in excess of billings, and reserves or revenue surplus by period to
Financial Accounting
(FI) and
Profit Center Accounting
(EC-PCA), you must define posting rules in Customizing for
Product Cost Controlling
under
Cost Object Controlling
Product Cost by Sales Order
Period-End Closing
Results Analysis
Maintain Posting Rules for Settlement to Financial Accounting
. These posting rules link data on the sales order item (work in process, reserves, and so forth) to the relevant G/L accounts in FI.
Features
You can perform results analysis with a number of different methods in parallel, such as revenue-based and quantity-based. You do this by defining results analysis versions.
Note the following:
Only the results of results analysis version 0 are transferred to Profitability Analysis .
Postings in FI are generated for all results analysis versions in which the Financial Accounting indicator is set.
If the sales order item has a results analysis key, the following results analysis data is settled to the profitability segment:
All results analysis methods except the POC method:
Valuated actual revenues
Cost of sales
Reserves for imminent loss
POC method:
Calculated revenue
Actual costs
Reserves for imminent loss
The inventory values and the reserves are transferred to Financial Accounting and Profit Center Accounting on the basis of the posting rules defined in Customizing. The settlement rule is irrelevant for the settlement of results analysis data to FI and EC-PCA.
Note
Only the difference against the last settlement is settled.
You can post the settlement on the last day of the period, or specify a different posting date. The posting date must lie within the period for which overhead is calculated.
Transfer Prices
If you are using transfer prices, you can update results analysis data in multiple valuation views. For more information, see the following section: Transfer Prices in Cost Object Controlling
Constraints
No worklist is available for the settlement process in Product Cost by Sales Order .