Define Settlement Cost
In this step, you define:
- primary cost elements for settlement to receivers in external
Settlement to receivers in external
accounting can take place in Asset Management, Inventory Management
within Materials Management or in the G/L account in financial
Primary cost elements correspond to
the G/L account in financial accounting.
When you want to settle to cost
elements, you do not require any primary cost elements for
- secondary cost elements for settlement to receivers in internal
To define a greater number of cost elements, you also have the
possibility in the Implementation Guide for Cost and Revenue
Element Accounting to create
For a successful settlement you should define the following cost
- Cost elements which incur costs
These cost elements must be presented
in cost element groups.
You require one cost element group
for each settlement assignment. When necessary you can create new
cost element groups by editing the source in the settlement
- Settlement cost elements to which costs are settled.
Every settlement cost element must
belong to one of the following categories:
- Internal settlement: Cost element category 21 (secondary).
- External settlement: Cost element category 22 (primary).
- If the cost elements assigned to the G/L accounts do not yet
exist, create primary cost elements of category 22 (external
If the corresponding G/L account does
not yet exist, you must first enter this in financial
- When required create secondary cost elements of category 21
- If the cost elements for the settlement already exist, you can
change them (for example, the cost element category), provided that
the cost element has not been used previously.
Note on transport
The "Controlling: General" IMG includes a function for cost