For projects and orders, you can choose between summary settlement and line item settlement. The differences between these two methods of settlement are in their use of system resources, and in the degree of exactness in the proof or origin on the final assets. During line item settlement, each individual line item is treated separately. You are thereby able to obtain a proof origin for each line item on the final assets. For example, an invoice from vendor 1000 is posted to investment order A. After settlement to the final asset, you can still determine that this debit originated from vendor 1000. The runtime for a line item settlement is longer than for summary settlement, during which totals are settled to cost elements, rather than individual line items. In the case of summary settlement, the system provides proof of origin based on cost elements.

You choose line item settlement or summary settlement by setting the indicator in the investment profile.

For summary settlement, you maintain settlement rules per cost element or cost element group. For line item settlement, you can choose to maintain separate settlement rules for each line item, or you can maintain them per cost element or cost element group. Each of these settlement rules can be used for both orders and projects.

In the following process, you carry out a summary settlement in which you enter the settlement rules by cost element groups (also called source assignments) for the 'Foundation of administration building’ WBS element.