You need to enter a settlement rule in the order master record before you can settle an order. The settlement rule contains distribution rules and settlement parameters.

The settlement rule comprises settlement receiver, settlement share and settlement type (periodic/full).

The settlement parameters are:

• Settlement profile

• Allocation structure

• PA Transfer Structure

• Source structure

In amount settlement, the amount entered in the settlement rule is settled in full (full settlement) or periodically (periodic settlement) to the specified receivers. You activate the amount settlement in the maintenance screen for the settlement profiles in customizing.

If amount rules have been defined in the settlement rule as well as percent or equivalence number rules, then the amounts are always settled first. Percentages or equivalence numbers then depend on the balance.

To define amount settlement rules in an order, you need to assign a settlement profile to that order, in which you have activated the corresponding indicator for the amount settlement.

In addition to activating the amount settlement, the following parameters are specified for the order settlement in the settlement profile.

• Allowed receivers

• Default values for allocation structure and PA transfer structure.

• Document type

• Other

In the allocation structure, the primary or secondary costs that were incurred on the order are allocated to settlement cost elements.

If costs are directly settled to Profitability Analysis, then you need to maintain the PA transfer structure as well as the allocation structure. In the PA transfer structure, the fixed and variable costs are assigned to the corresponding value fields.