Full Settlement of an Investment Measure
Use
Full settlement is the settlement of the investment measure when it is completed. During full settlement, you settle the amounts that were charged to the asset under construction. As soon as an investment measure has technically completed status , the system carries out full settlement. Full settlement can take place to a number of different receivers. Usually the receivers are one or more fixed assets.
Features
Before you post the full settlement, you have to create settlement rules for the investment measure. You can use line item specific or blanket rules for the full settlement as well as the periodic settlement. For more information see
Settlement Rules. Generally, however, you only need blanket settlement rules for full settlement.Full Settlement
You can create an asset for the later settlement directly from master data maintenance for orders or WBS elements. The system then automatically creates a full settlement rule with equivalence number 1 and the newly created asset as the receiver.
Partial Capitalization
Especially when you have a large capital investment measure, you may put different parts of it into service, one after the other. In this case, you can define settlement rules for the full settlement that total less than 100%. There is also a special processing type for this kind of partial capitalization (refer to
Settlement). This type of processing allows you to settle amounts from the investment measure to completed assets, although the investment measure does not have technically completed status.After the settlement is posted, the distribution rules used can no longer be changed. However, you can add new receivers for the amount that is still open. When you distribute this remaining amount, the percentages apply to this partial amount and not the original full amount.
In the settlement rules for partial capitalization, you have to enter the period in which the rule becomes valid (the ‘from’ and ‘to’ period will be the same).
Full Settlement to CO Receivers
As a rule, debits already capitalized to an asset under construction should not be included again in cost accounting, as they may have already been recorded under fixed assets. For the purposes of making corrections, you can, however, include CO receivers in the distribution rules for the full settlement. There are two different possible situations.
It is a fundamental rule that only debits from the current fiscal year can be settled to CO receivers, since debits from the previous year cannot have any cost accounting significance in the current fiscal year. Otherwise, the asset history sheet would be incorrect. You settle the debits from the current year using the normal settlement transaction and entering the CO settlement receivers.
The situation can arise in which you want to settle debit corrections from the previous year to CO receivers. This procedure corresponds to a retirement from fixed assets, since these debits were already settled to an asset under construction during the last year-end closing. Therefore, in order to guarantee that the display in the asset history sheet is correct, you have to settle the debits to an asset. You have to post a retirement on this asset in the Asset Accounting (FI-AA) component, with the reverse acquisition in following year transaction type. The offsetting account for this posting is an expense account, and corresponds to a cost element, so that the relevance of the transaction is preserved for cost accounting.
Quantity Update
During settlement to fixed assets, you can transfer the quantity entered in the asset under construction to the new asset master record. You can perform quantity update for objects managed for summary settlement. There is no quantity update for the capitalization of investment measures managed for line item settlement.
You have to enter the same unit of quantity in all of the following:
If these prerequisites are met, the system updates the Quantity field in the asset master record if the debit cost element has the same quantity unit. During full settlement, the system distributes the quantity according to the settlement rule. However, quantity update is not possible for assets under construction that do not belong to investment measures.
Currently it is not possible to distribute by quantity in the settlement rule.
