SAP CO Settlement Profile for Internal Order
Settlement as already discussed in our previous posts is an important part of Period End activities. To enable settlement of Internal Order we need to maintain Settlement Rule in the Internal Order.
The Settlement Rule is governed by the parameters maintained under Settlement Profile. In other words, we define a range of control parameters for settlement in the settlement profile. The settlement profile must defined before maintenance of settlement rule for a sender (Internal Order).
Settlement parameters (Rule) cannot be maintained during settlement to a receiver, one must save the settlement profile either in the order type or in the model order or reference order.
Settlement Profile contains various parameters which are copied to the order automatically. It is due to this you do not have to enter same values every time in the order.
System will navigate you to the screen as appearing in Image 1.01 below:
SAP provides various standard Settlement Profiles that can be used for our purpose or the existing settlement profile can be used (copy function) to create a customised Settlement Profiles. Now we will go through one of the Settlement Profiles. For our understanding purpose we will double click on Settlement Profile “20” i.e. Overhead costs. After double click on the settlement profile system will navigate us to the screen appearing under Image 1.02:
The screen (refer Image 1.02) is divided into five parts and we will go through each part and configuration separately below:
Actual Costs/Cost of Sales
This part of the screen contains configuration related to settlement of amount as explained below:
This portion helps us to maintain default values for following:
Enter the Allocation Structure that should be defaulted in the Settlement Rule that is generated in the Internal Order. This can be changed manually in the Settlement Rule.
Enter the Source Structure that should be defaulted in the Settlement Rule that is generated in the Internal Order. This can be changed manually in the Settlement Rule.
PA transfer str.
Enter the PA Transfer Structure that should be defaulted in the Settlement Rule that is generated in the Internal Order. This can be changed manually in the Settlement Rule.
Default object type
Enter the object type that should appear in the settlement rule by default. This can be changed manually in the Settlement Rule.
Change in any of the above default values DO NOT have effect on already created Internal Orders.
This section contains various radio buttons available for selection that have impact on settlement of the Internal Order. All the available settings are explained below:
This indicator, if activated, shows a warning message if total in Settlement rule is lesser or greater than 100%. It is a warning message, so you can go ahead and save even if amount does not equal to 100%.
But system at the same time does not allow you to settle order if the amount is not equal to 100%. This indicator helps you to identify if the amount specified in settlement rule is not equal to 100%.
If this indicator is activated, system allows us to specify the distribution rule in settlement rule in percentage. For e.g. a settlement rule where 40% amount is to be settled on Cost Centre and balance 60% amount to be settled on asset is possible by defining the distribution rule in percentages if this indicator activated.
If this indicator is activated, system allows us to specify the distribution rule in settlement rule according to proportions.
For e.g. if we wish to settle the amounts among three different cost centres with equivalence 1, 4, 7 then the amounts will be divided as below:
Cost Centre 1 1/12
Cost Centre 2 4/12
Cost Centre 3 7/12
This indicator allows us to distribute the amounts. For e.g. 5000/- to Cost Centre 1 and 6000/- to Cost Centre out of total 11000 cost booked on an order.
Variance to Costing-Based COPA
If you set this indicator, variances are passed on to costing-based Profitability Analysis (CO-PA component) during order settlement.
In order to be able to pass the Variance to COPA following configurations are required to be in place
Profitability Segment as default account assignment for Variance Cost Element (Refer Image 1.03 below) Transaction Code: OKB9
Availability of PA Transfer Structure
Availability of Allocation Structure
This part of the Settlement Profile contains list of receivers which will be valid for settlement. The options available or each receiver are:
Settlement not allowed
Given below is the list of available receivers:
Real Est. Object
Enter the document type to be used for settlement of the order.
Enter the maximum number of distribution rules for each settlement
This field contains the residence time for the settlement documents, expressed in calendar months