10/31/2019 Information about the Settlement Rule in Cost Object Controlling (CO-PC-OBJ) - ERP Financials - SCN Wiki

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Information about the Settlement Rule in Cost Object Controlling (CO-PC-OBJ)

Created by Isabell Berger, last modified by Humberto Ordosgoitia on Dec 16, 2016

Purpose
Overview
1. Settlement Receivers
2. Distribution Rules using Percentages, Equivalence Numbers and Amounts
3. PER and FUL rules
4. Settlement Parameters
5. Source Assignments
6. Generated Settlement Rules
Related Content

Purpose
The purpose of this page is to clarify the understanding of the settlement rule.

Overview
This document contains general information about the settlement rule. In the settlement rule you specify the receivers to which the costs are
to be distributed. 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. Settlement Receivers
More or less all CO objects are allowed as receivers of a distribution rule and the external G/L account and fixed asset receivers. In
addition, production orders have material as an external receiver. 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

Settlement is made depending on the settlement rule created. You can create distribution rules with either percentages, equivalence
numbers or amounts. In the settlement profile, you need to specify whether fields (such as for the amount in the rule) are ready for input.

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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.

3. PER and FUL rules

You need to assign a settlement type (PER for periodic settlement and FUL for full settlement) to each distribution rule.
When you manually create a settlement rule, the system defaults the settlement types depending on the receiver category. The default
value cannot be entered without making modifications.
You can create PER and FUL rules at the same time. For the effects of these rules, and the access sequence, see SAP note 27922, and
the F1 help for the "Processing type" field, in the initial screen for settlement. The following is important:
The PER rules only include the costs from the settlement period during settlement, whereas the FUL rules also include the values from
the previous period that have not yet been settled.
The PER rules mean that during activity inputs, the information is transferred via the activity provider to the settlement receiver, whereas
the FUL settlement does not do this.
Therefore it is often useful for an order to have two rules. One with 100% PER to the receiver cost center, and one with 100% FUL to the
receiver cost center. 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.

4. Settlement Parameters
The settlement parameters are used to control sender settlement.

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Listed in the settlement parameters

Description (not used)
Settlement profile
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. You create the settlement profile
in Customizing (OKO7).
Allocation structure/PA transfer structure/Source structure
The default values for these structures are taken from the settlement profile. You create the structures in Customizing (OKO7).
Hierarchy number
Hierarchical settlement is automatically supported during collective 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.
The higher this number, the sooner the sender is processed. The hierarchy number is automatically issued or adapted by the system, and
does not need to be entered manually by the user. If however, there should be any inconsistencies with the hierarchy numbers, then you
can repair them using the RKSRULE4 report from SAP note 71492.

5. Source Assignments
If a sender has a source structure in the settlement parameters, then you can create settlement rules for each source assignment. This
enables costs and revenues to be settled to various receivers separately, for example.

6. 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.
The settlement rule for production orders mainly determines the business behavior of the production order. Therefore, the automatically
generated rules for production orders cannot be deleted, you can often only change the percentage. If you enter 0%, you can, however,
force a different settlement. The following are examples of automatically created distribution rules:
Production order: Settlement rule to material or sales order. The rule is created at the same time as the order.
Production order: Settlement rule for the variances to the profitability segment. The rule is generated during the first variance settlement.
Sales order: Settlement rule to profitability segment. The rule is created at the same time as the sales order.
The different settlement categories are defined during settlement rule creation in include LCK02F02 form kontierungstyp_set.
Which settlement category is chosen is dependent from the scenario: Is the goods receipt valuated or unvaluated? How are fields KZVBR,
KZBWS filled? These fields are find in table AFPO respectively in table VBAP if the order is connected to a sales order.
It seems there are different requirement classes and/or different account assignments used in your sample. Please check it. The "account
assignment category" (field KNTTP) is maintained in the requirements class. Please see WIKI article MTO Customizing at a Glance
including technical view on tables and indicators.

Related Content
Settlement Types of Production Orders - Process Orders - Product Cost Collectors
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