In this step you define the default values for the
process orders for each plant and order type.
The default rule determines whether settlement follows the last
delivery or is made in each period.
Settlement to stock
For orders whose costs are settled to
stock, settlement can be made either at the end of the period
(settlement by period) or after final delivery (full
Full settlement is for cost object controlling based on the lot
size. Variances are not calculated until after the final delivery
of the respective order. The order balance appears as work in
process before the final delivery. The default rule is PP1 (full
Settlement by period is for period-based cost object
controlling. With settlement by period, the work in process and the
variances reported are based on the quantities confirmed and
delivered in the period. The default rule is PP2 (settlement by
For orders assigned to a sales order
item or WBS element, the settlement type must be "GES" (full
settlement) if you are using a
nonvaluated sales order inventory . The costs for
these orders are included in
results analysis for the sales order item or WBS
The valuation variant selected
through the costing variant is displayed for informational
costing sheet , which contains parameters for
calculating overhead, is proposed through the valuation
The standard system contains the following default values for
the Cost Object Controlling with order-related production in plant
If you want to use periodic settlement with production orders
and process orders, change the default rule to PP2.
If you want to use periodic settlement in make-to-stock
production or sales-order-related production, and full settlement
in sales-order-related production with a nonvaluated sales order
inventory, you must define two order types with different default
Specify the default values according to your requirements.
If you want to use process orders, you should also check whether
the Order management indicator is set for
each fiscal year in the controlling area.