Settlement Rule is used to distribute the cost lying on the projects & WBS / network activity to the respective recievers such as GL account, Profit center etc. Usually the settlement profile is assigned to the project profile in customising (SPRO), and it comes into the WBS / Network when we create projects.
Full Answer
What is the use of a settlement rule in SAP?
Settlement Rule is used to distribute the cost lying on the projects & WBS / network activity to the respective recievers such as GL account, Profit center etc. Usually the settlement profile is assigned to the project profile in customising (SPRO), and it comes into the WBS / Network when we create projects.
How is the settlement rule generated?
The settlement rule is generated based on the settlement profile assigned to that order type. The settlement profile configuration determines if the order is settled in full, can be settled, or not, what receivers are valid, what allocation structure is relevant, along with many other settings.
What cost objects in SAP require settlement?
This question was posed specifically about project systems, but this applies to all cost objects in SAP that require settlement: Production orders, process orders, sales orders, and internal orders. To learn more about settlement rules and other SAP FICO topics please visit our new SAP FICO Learning Center please click here.
What are the settlement parameters used for?
The settlement parameters are used to control sender settlement. The default value for the settlement profile is taken from the order type for orders and networks, from the project profile for WBS elements, from the requirements class for sales orders and from the cost object type for general objects.
How do you create a settlement rule in SAP?
ProcedureChoose Settlement rule in the master data maintenance for the relevant sender object. The screen Maintain Settlement Rule: Overview screen appears. ... Choose Edit New Rule. or enter the value directly. ... Specify the settlement type for each distribution rule. Note.
How do you create a settlement rule in WBS in SAP?
you can also create a settlement rule using T-code CJ88 and put the Project definition or WBS element, Period and posting date. AUC will automatically create against WBS. You can also create it manually by selecting the WBS element then Press CTRL+F3 by keyboard and put the requirement entry, your auc will create.
How do you determine a settlement rule?
Go to CNS41/CN41. Select the WBS Element for which you want to see the settlement rules. Then Click on the Settlement Rule button. This will dispaly all the settlement receivers.
What is an SAP settlement rule?
Settlement Rule (SAP Library - Plant Maintenance (PM)) Settlement Rule. Definition. Defines what proportion of the costs on a sender should be settled to which receiver(s). For this, one or more distribution rules are assigned to each settlement sender.
How do you maintain WBS settlement rule?
Maintenance department will create maintenance orders as per their work requirements. These orders will be settled to cost centre, which is maintained in the settlement rule. Also WBS element will have to be mentioned in each order so that the budget control can take place.
How do you settle a project in SAP?
A system status which allows settlement must be set for the objects you want to settle. You must also maintain a settlement rule in each sender before you can settle a project. You define the settlement criteria in the project master data. You maintain profiles in the Project System IMG.
Where is SAP settlement profile?
You can maintain a settlement profile in system. Step 1 − Use the T-code: OKO7 or navigate to SPRO → IMG → Controlling → Internal Orders → Actual Postings → Settlement → Maintain settlement profiles. Step 2 − In the next window, select maintain settlement profiles and click Choose.
What is settlement order in SAP PM?
PM orders are only the Cost collectors. So, the costs collected in the Order has to be settled finally to one of the Cost object. The cost object is decided based on the business requirement. It can be a Cost center or WBSE or Settlement order or G/L....
What can you configure in the settlement profile?
The settlement profile configuration determines if the order is settled in full, can be settled, or not, what receivers are valid, what allocation structure is relevant, along with many other settings.
What is settlement profile in internal order?
The settlement profile is the part of order configuration that provides the order type with the details of how it can settle the order costs. It accomplishes this by controlling how settlement rule can be defined for internal order. T. The settlement profile stands as an accumulation of the other areas of settlement.
How do you maintain settlement rule in AuC in SAP?
Settlement rules can be maintained from AuC to Fixed Assets. To do so, in the Fixed Assets work center, Fixed Assets view, select the asset under construction, and click Settlement Rule, and then New Settlement Rule.
How do I create a budget for WBS element in SAP?
Creating WBS Elements in SAP PM To use WBS elements, use Transaction CJ01 to define a project (for example, plant maintenance budgeting) and then use Transaction CJ11 to create several levels of WBS elements as a basis for a budgetary structure.
What is settlement rule?
The settlement rule is generated based on the settlement profile assigned to that order type. The settlement profile configuration determines if the order is settled in full, can be settled, or not, what receivers are valid, what allocation structure is relevant, along with many other settings.
What is settlement profile configuration?
The settlement profile configuration determines if the order is settled in full, can be settled, or not, what receivers are valid , what allocation structure is relevant, along with many other settings. This is the key piece of settlement configuration that links together other elements like the allocation structure. A different settlement rule is generally required for each cost object.
What is allocation structure?
The allocation structure determines what source cost elements are posted to what settlement cost centers. For example, you can group together material costs to see them separately from labor costs and service costs. You can also settle those costs to different settlement cost elements to have more visibility to that level of detail during settlement.
What is the purpose of the settlement process for Network Activities?
The purpose of this document is to cover configuration steps required for automatic generation of settlement rules for Network Activities. The settlement process for Network Activities is a common requirement for CAPEX projects for example, because the AuC has direct link with the WBS-element, so eventually you need to gather all the cost at WBS-element level before the asset settlement.
How many configuration activities are there in customizing?
As you can see the customizing part is consisting of three configuration activities.
Can you run both settlements in CJ88?
When you will be running a settlement with CJ88 you can select the flags for hierarchy and orders to run both settlements in one go:
What is settlement profile?
You need a settlement profile stored in project profile or network type, which determines whether settlement is required, allowed, or blocked.
Can you maintain a settlement profile in System?
You can maintain a settlement profile in system.
Can you use settlement profile to define actual costs?
As per the settings in the settlement profile, there is a need to settle the costs of an object in full before that object is achieved in the system. You can maintain a settlement profile in system.
What is settlement rule?
The settlement rule contains the settlement parameters as well as the distribution rules. Distribution rules contain the settlement receivers, settlement shares and settlement type. They can contain a source assignment. 1.
What is hierarchy settlement?
This means that a sender (that is also a receiver during this settlement) is processed according to the object settled to it. This is controlled by the hierarchy number in the settlement parameters.
What is the difference between a 100% per and a 100% Ful rule?
This means that all costs from the settlement period are settled using the PER rule, and the activity information for these costs are transferred thus to the receiver cost center. On the other hand, the FUL rule ensures that any subsequent costs that were settled to the past are also settled.
How does SAP note 330001 work?
SAP note 330001 describes how amount settlement works, providing detailed examples. The main theory of amount settlement is that the amount to be settled (from the distribution rule) is proportionately deducted from incurred costs. The rest is distributed to the receivers of the percentage rules. The amount settlement does not take place if there are no costs that need to be settled. Please see useful information in SAP note 50249.
What is external settlement?
External means that the settlement not only occurs in CO, but also triggers postings in Financial Accounting. You specify whether a receiver category can be entered in a distribution rule or not in the settlement profile. 2. Distribution Rules using Percentages, Equivalence Numbers and Amounts.
What are distribution rules?
Distribution Rules using Percentages, Equivalence Numbers and Amounts. Settlement is made depending on the settlement rule created. You can create distribution rules with either percentages, equivalence numbers or amounts.
Can you create a settlement rule manually?
Generated Settlement Rules. There are a lot of object types (including production orders and sales orders) where it is not feasible for the user to create a settlement rule manually. For this reason, the system generates the settlement rules automatically at certain times.