Periodic settlement to CO receivers makes it possible to post debits to the investment measure which are not intended for later capitalization. You can settle these debits directly and completely to CO receivers, usually cost centers, without needing to carry out a settlement to the asset under construction for them (refer to Periodic Settlement to an Asset under Construction ).

Note that the periodic settlement to CO receivers and the capitalization to assets under construction take place in the same step with the same processing type (either Periodic or Automatic).

The blanket distribution rule (using a source structure) allows you to specify that certain cost centers are not capitalized (refer to Account Assignment for Settlement ). The settlement of certain line items to CO receivers is especially useful when certain incidental costs have been posted to an investment measure, but should not be capitalized (for example, removal expenses for an asset that is being replaced). This is necessary in certain circumstances so that the total costs of the measure can be monitored in management accounting (including amounts that do not require capitalization).