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  Costs Settlement (CO Settlement)

Purpose

You can settle costs incurred on Real Estate objects (business entity, property, building, rental unit, lease-out) on the Real Estate objects themselves as and where they arise, or you can use other account assignment objects in the SAP System.

Real Estate objects can also receive costs from other account assignment objects, such as from a cost center, an order or an asset.

This documentation only describes the view with the Real Estate object as "sender" of costs.

For detailed information on the CO settlement and the account assignment objects involved, including the Real Estate object as "receiver" of costs, refer to the documentation of the Controlling component CO Settlement .

Note that it is only possible to carry out input tax distribution based on option rates for the Real Estate object if the purchase order or invoice has already been assigned to a Real Estate object in Financial Accounting. If the purchase order or invoice is assigned to another controlling object (such as an order) and then settled to a Real Estate object in the CO settlement, the tax information on the original document is lost. The Real Estate object is only debited with the net share.

Prerequisites

All "receiving" account assignment objects must be released for account assignment.

Process Flow

I.Customizing

Check that the correct settings have been made in Customizing for Real Estate:

  • Settlement cost elements

  • Settlement schema, source structure, PA transfer structure

  • Settlement profile

  • Selection variants for collective processing (you can also maintain these in the application)

II.Real Estate master data objects

You have to assign each object to be settled a settlement rule consisting of:

  1. Receiver of the costs (such as cost centers, orders); this data must have been created and possibly also activated or released in the respective standard applications

  2. Settlement schema, source structure, PA transfer structure

  3. Settlement profile

III.Posting costs to objects

The CO settlement takes account of all costs and revenues that have been posted to Real Estate objects.

IV.Carrying out CO settlement

You do this in the Real Estate Management component. There are two methods:

Single processing

Collective processing

Settlement by selecting existing objects; including the whole hierarchy if required (for instance, all rental units of a business entity)

Further selection criteria possible by creating a selection variant (for instance, by usage type, contract type and so on).

You have to use this procedure if you want to run the settlement as a background job.

Result

The CO settlement credits the actual costs on the sender object and debits those on the receiver. How this is done depends on the Customizing settings:

  • Either under the same cost element under which the debiting was carried out

  • Or under a special settlement cost element (secondary cost element)

You can display the postings in the Controlling reports of the information system.