Settlement Parameters

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The settlement process is controlled using various parameters, including:

Settlement Profile

Allocation Structure

PA Transfer Structure

Source Structure

You can find out how to define these parameters in the Implementation Guide (IMG) for the sender object.

Settlement profile

The settlement profile is defaulted on the basis of the entries you made in Customizing. For example, for Internal Orders, the settlement profile is transferred from the order type. You need a settlement profile for each settlement rule.

Define the following in the settlement profile:

Permitted receivers:

This is where you define which receivers you can settle to. For example, for overhead orders, you can stipulate that settlement may be made to cost centers and orders, but not to fixed assets.

Document type for accounting relevant or balance-sheet relevant settlements

Maximum number of distribution rule s

Residence time for the settlement document

Whether the portion to be settled may be specified as a percentage and/or using equivalence numbers or whether costs can be settled according to amounts

Whether the total of the settlement percentage rates must be 100% during periodic settlement, or whether the total can be less than 100% (in other words, that you do not need to settle a sender object completely).

Whether variances should also be recorded in the costing-based profitability analysis.

Default values, which are transferred when you create the settlement rule:

Allocation Structure:

In the settlement structure you combine the primary and secondary cost elements into groups, in which debits are then posted to the sender objects. For each group, you specify whether (for settlement to a given receiver type) settlement is performed by cost element or using a settlement cost element.

For example, you might use settlement cost elements:

To document the purpose of an order (such as, repairs or maintenance)

To reduce data volumes (you can combine a number of debit cost elements under one settlement cost element).

PA transfer structure

The PA transfer structure is only required when you settle objects to Profitability Analysis (CO-PA).

You can use it to assign the fixed and variable costs incurred under one cost element or cost element group to different value fields in the operating concern.

Account assignment default:

This enables you, for example, to go directly to the screen for entering a receiver cost center each time you create a settlement rule. You should enter the receiver type Cost Center as the default account assignment.

Source structure

In the source structure you group the primary and secondary cost elements into assignments , in which debits are then posted to the sender objects. When you enter a distribution rule, you can enter a different receiver for each assignment. You can, for example, use this to settle primary costs using different rules than those required for secondary costs.

During settlement to a G/L account or a fixed asset, the system ignores additional account assignments that were manually specified in the distribution rule.

Specifications for actual costs or cost-of-sales for the settlement:

To be settled in full:

When you try to close an object or set the deletion flag, the system generates an error message if the balance for the object is not zero.

Can be settled:

You can settle the actual costs, but are not under obligation to do so. When you try to close an object or set the deletion flag, the system displays a warning message if the balance for the object is not zero.

Not for settlement:

Example Example

The actual costs for the object are not settled, even if you specifically trigger settlement for the object. However, WIP and variances can be settled. When you try to close an object or set the deletion flag, the system does not display any messages if the balance for the object is not zero.

The Production cost center makes a repair request to the Work Center cost center. The costs are distributed as follows:

The Production cost center bears all material costs.

The market price for the repairs totals EUR 50 per hour, and the repairs usually take a maximum of five hours. Therefore, the Production cost center is liable for labor costs of up to EUR 250.

The Work Center cost center is liable for remaining costs.

You create the Repairs source structure and define assignments, each with a cost element group.

End of the example.

For material costs

For repair hours

You enter the Repairs source structure in the settlement rules for the repairs request and define the following distribution rules:

You settle all of the material costs to the Production cost center.

You settle repair hours totaling EUR 250 to the Production cost center.

You do not need a source structure if you want to settle all your cost elements using the same rules.

Activities

Choose Start of the navigation path Settlement Rules Next navigation step Goto Parameters for Settlement End of the navigation path , to change the settlement parameters.