Flow of Values during Settlement (SAP Library

Flow of Values during Settlement

The following graphic provides an overview of the phases in settling a debit on an investment measure. The graphic shows the maximum number of steps that can be used for a single debit.

A debit of 10,000 is posted to the investment measure with cost element 2 (production overhead costs). 50% of these overhead costs should be capitalized. This is shown in the blanket settlement rule (with source structure) for the investment measure: 50% to be settled at periodic intervals to cost center 2 (refer to Account Assignment for Settlement).

The system settles the remaining 5000 on a periodic basis to the asset under construction. Tax laws stipulate that less than 50% of the production overhead costs can be capitalized in depreciation area XX (tax depreciation). Therefore, the specification in the capitalization structure is that 80% of the remaining 5000 (=4000) is capitalized to the asset under construction. The remaining 1000 goes to nonoperating expense (refer to Periodic Settlement to an Asset under Construction ), to the account entered in the account determination for depreciation area XX.

When the asset is completed, the system settles the 4000 that was capitalized to the asset under construction on the basis of a blanket total settlement rule. It is settled to three different assets.