Settlement Hierarchy

Usage

During a settlement run, a settlement object can pass on costs to a settlement receiver that is also settled during the same settlement run.

You have internal orders for repair or maintenance costs, as well as for each machine and each of your fixed assets. To receive summarized information about all suborders for your fixed assets, settle your internal orders with repair- or maintenance costs to the orders that collect the costs for the relevant machines. Then settle these orders to the internal orders that collect the costs for your fixed assets.

To ensure that you have fully settled all objects following the settlement run, you must settle the objects in the correct sequence. No objects may be settled and later receive costs from another object during the same settlement run. The costs received later would not be settled in this settlement run. For this reason, the system determines a settlement hierarchy.

Function Scope

On the basis of your entries in the settlement rules, the system automatically determines the processing sequence for the settlement objects so that you can settle all objects completely. Each object is given a hierarchy number between 0 and 999. The object with the highest number is settled first and the object with the lowest number is settled last.

In our example, the repair- or maintenance orders have the hierarchy number 100. Orders for a turbine or refrigeration have hierarchy number 050, and the order for your power station has the hierarchy number 000. Correspondingly, the system first settles the repair- or maintenance costs to the turbine or refrigeration, and then settles these orders to the power station

If you should settle the orders for the turbine or refrigeration first of all, these orders would still receive costs afterwards from the repair- or maintenance orders. These costs would not be settled during this settlement run.

If it is not possible for the system to determine a settlement hierarchy for a settlement run, in which all settlement objects can be completely settled, the system informs you with a suitable message. Particularly for this event, you have the possibility of manually entering a hierarchy number for your settlement objects. You can thus specify which objects in a settlement run are settled first, and, if required, debited later with costs from the same settlement run. In this case you should start the settlement several times, until all objects can be settled down to zero.

Actions

You can get an overview of the settlement hierarchy in Settlement rule ® Settlement hierarchy.