Settlement Parameters

The settlement process is controlled through various parameters. These parameters include:

You can find out how to define these parameters in the Implementation Guide 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 profile is transferred from the order type. The settlement profile is a prerequisite before you can save a settlement rule for a sender object.

You define the following in the settlement profile:

This is where you define which receiver types you can settle to. For example, in the case of overhead orders, you can stipulate that settlement may be made to cost centers and orders, but not to fixed assets.

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.

You can settle the actual costs, but this is not obligatory. When you try to close an object or set the deletion flag, the system generates a caution if the balance for the object is not zero.

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 generate any messages if the balance for the object is not zero.

Settlement Structure

The settlement structure combines into groups the primary and secondary cost elements under which debits are posted to the orders. 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.

You might use settlement cost elements:

PA Transfer Structure

The PA transfer structure is required only 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.

Source Structure

In the source structure, primary and secondary cost elements, under which debits are posted to the orders, are summarized into source assignments. When you enter a distribution rule, you can enter a different receiver for each source assignment. For example, primary costs can be settled using different rules from those applicable to secondary costs.

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