Create Settlement Structure

During settlement, costs incurred under the primary and secondary cost elements by a sender are allocated to one or more receivers. When you settle by cost element, you settle using the appropriate original cost element.

A settlement structure comprises one or several settlement assignments. A settlement assignment shows which costs (origin: cost element groups from debit cost elements) are to be settled to which receiver type (for example, cost center, order, and so on).

You have two alternatives in settlement assignment:

This is a good idea, for example, if the required capital spending for an asset you are building yourself is to be monitored. These costs are settled by cost element to an inventory account in Asset Accounting at the end of the year, or when the measure is complete.

Each settlement structure must fulfil the following criteria:

A settlement structure is assigned to each object to be settled. All cost elements in which costs are incurred, must be represented in the appropriate settlement structure.
Each cost element in which costs are incurred may be present only once within a settlement structure. Only one settlement cost element may be assigned to a source within a particular settlement structure.

If you require additional debit- or settlement cost elements, you can create these using the function maintain settlement cost elements


When you settle to materials you do not need to create settlement cost elements.


You create a settlement structure as follows:

1. Choose New entries to enter an identification code and a description for your settlement structure. Save your entries and goto the settlement structure screen.
2. Choose Detail to branch to the screen for creating settlement assignments.
3. Choose New entries to enter one or more settlement assignments in your settlement structure. Save your entries and goto the settlement assignment screen.
4. Choose Origin in the settlement assignment for your controlling area.
Choose New entry to specify as the origin a cost element group under which the costs are to be posted to the sender. If the cost element group which you specified does not yet exist in the chart of accounts that is assigned to your controlling area, you can create the cost element group at this point.
5. By choosing settlement_cost_element you have two alternatives:

After you have created a settlement structure, you can choose from the settlement structure screen to display a particular settlement structure as a hierarchical list. Choose table_view -> lists.