WBS Settlement and Postings to FI

[Former Member]

We are having an issue while doing a manual settlement for a project. The accounting document is being created but charges related to one of the cost elements did not flow to the corresponding GL account in FI. While settlement to the required cost center was done correctly for all the cost elements.

Your input is highly appreciated!!

[Former Member · Accepted solution]

Hi Pete

Boss please check the relevant cost element is assigned to any of

the Cost Element group (KAH2 or KAH3), which is being used in Allocation

Structure.

Regards

Chandrasekaran A

[Former Member · Accepted solution]

Cost element group is not used in the Allocation Structure. It is done by cost element and cost element in questions falls in that range of cost elements given in the Allocation Structure.

Any other idea......???

[Former Member · Accepted solution]

Hi,

If you are missing Freight cost element in allocation structure,you sould assign this cost element to allocation structure and run settlement again.

hope this helps you.

Thanks,

Rau

[Former Member · Accepted solution]

The freight cost element is already in the range of cost elements given for Assignment Base Costs. My question was that does the base costs include the freight. Also where do we define what is included in each assignment? For example, right now 4 assignments Base costs, Tax, Accrual-coupons, and Trade Coupons are defined under the Allocation Structure.

Thanks a lot!!

[Former Member · Accepted solution]

Hi,

goto Allocation structure and select your allocation structure(e.g. A1) and doble click on assignment folder in left window.

now sekect assingment 100 (e.g 100 cost) and doble click on Soruce folder in left window.see cost element rage is using or cost element group is using.based on this.frieght cost element is is part of this or not.

check all your 4 assignment and if freight cost element is missing,assign in correct assignment.

hope this helps you.

if you need more details,let me know.

Thanks,

Rau

[Former Member · Accepted solution]

That I had already checked and cost element is part of the range given for Base Cost Assignment.

The WBS settlement is done to a cost center using the same GL account where the expense was initially charged. I have read somewhere that if that is the case the FI entry is not created. Is that so?

Can you shed some light on that, if you know??

[Former Member · Accepted solution]

Hi,

If you are settling from WBS to cost center ,you will not see any FI entry.because both are cost objects and you are settling cost from one cost object(WBS) to other object(Cost center).

If you are settling cost from WBS to Asset or GL account,you will see FI entry.

hope this helps you.

Thanks,

Rau

[Former Member · Accepted solution]

Thank you, that make sense.

Here is what I am not able to understand.

The settlement is done for three cost elements. The costs are settled to the cost center for all the three cost elements in CO. The sender/receiver shows the charges for all the 3 cost elements.

My confusion is with the accounting document, which is created from settlement. It has posting for 2 cost elements. The posting is for Debiting and Crediting the same account(cost element) for equal amount in FI. But it is missing the posting for the charges for the 3rd cost element which is Freight. This is the GL account where the expenses were initially posted at the time of Goods Receipt so the account has Debit balance which, my guess was, balance to zero after credit posting is done to the account after the settlement.

So referring to settlement of cost from one cost object to another should not have any effect on FI and FI document should not be created at all, but is being created and has posting for 2 cost elements while for the 3rd is missing. Please provide your thoughts.

Thanks for your time and effort.

I will assign the numbers as I get closer to solving this mystery.

[Former Member · Accepted solution]

Hi Pete,

Check your settlement receiver in your WBS.

Goto CJ20N>enter your WBS>place cusor on WBS>click on EDIT from menu>Cost--> Settlement rule(CTRL +F3).

you will see Account assignment category,in your case it is CTR(cost center).if it is not CTR,what is your settlement receiver?

Are you sure that credit postings in FI are coming from settlements?make sure what type of business transaction is this?if it is "KOAO",it is a settlement postings.if not you have to investigare where it is coming from.

Settlement credit postings are with same cost element.means in your allocation structure you have selected "BY COST ELEMENT" . for this goto your allocation structure and click on assignment folder in left window and then select your assignment and click on settlement cost elements folder in left window.now you will see receiver object and check box selected.

Pete,verify all your settings related to settlement and make sure that if your settling costs from WBS to Cost center,postings shouldn't hit FI.

If you need more information,Let me know.

Thanks,

Rau

[Former Member · Accepted solution]

Rau- Thanks for all your help.

Cost Center is defined as the settlement receiver in the settlement rule and it is the one to which charges are settled to.

The FI document has Ref. Transaction AUAK and Ref. Key has the settlement document number and tcode for the accounting doc header is CJ8G.The accounting document is SA. Should it be ZW because it is created as a result of settlement.

In the Allocation Structure Fixed Asset, Cost Center, WBS, Order and GL are configured as Receivers and By Cost Element is checked for all of them.

[Former Member · Accepted solution]

Hi Pete,

Are you testing in Quality or Test system?if so just reverse your settlement.

You have to change allocation structure.Remove GL account from Receiver list (not required).

once you changed the allocation structure and try to settle,now see you have any postings in FI.

Hope this helps you.

Thanks,

Rau

[Former Member · Accepted solution]

This is happening in PRD system. Just a question out of curiosity: why the GL won't be needed in the reciever list?

Edited by: Pete on Oct 14, 2008 4:59 PM

[Former Member · Accepted solution]

Pete,

In your case GL shouldn't be a receiver.because you are settling costs to cost center.

if you have seperate allocation structures for different receivers, you woundn't have this problem.

Thanks,

Rau

[Former Member · Accepted solution]

Rau,

The Freight GL account is showing charges related to the project which were posted to the Freight GL account at the time of Goods Receipt. Any idea how will they be cleared or balanced from the account if a credit posting should not come at the time of settlement of the project as costs are settled to a cost center and the GL account should not be in the receiver list.

[Former Member · Accepted solution]

Hi Pete,

Why do you want to clear FI postings with credit?

If i understand you correctly,you wants to collect all cost on WBS(project) and end of the month,you would like to settle to Cost center.

if this is true why do you wants to clear FI?could you please explain me what is your process,so i can help you better.

Thanks,

Rau

[Former Member · Accepted solution]

That is right, we just wants to collect all the cost on WBS(project) and end of the month, would like to settle to Cost center.

My question about clearing the GL account with credit posting was just out of curiosity. Because we have open line items on the Freight GL account which are project related. So I wanted to know what do we do with those items. Do we clear them or balance out with some sort of credit postings.

Thanks.

[Former Member · Accepted solution]

Hi Pete,

All the costs and expenses are posted with P&L accounts in FI and we assign or some time defualt cost object to post to Controlling module for internal reporting purpose.if you clear all these kind of postings in FI.how you will generate P&L statement out of FI module for legal reporting?

please check with your FI business process owner or subject matter expert about the process.

my suggestion if you are collecting cost on WBS and end of the month settle to Cost center and do not post any thing to FI or settle to FI to clear actual postings.

Thanks,

Rau

[Former Member · Accepted solution]

Rau,

You have summed it up very nicely. I thank you for all the support you have provided in clarifying this issue. I am assigning the points as token of thanks.

[Former Member]

May be I was not able to phrase it correctly. Here is the whole scenario. Freight related charges were posted to the GL account at the time of Goods Receipt (WE). So the GL account has a debit entry for the charges. At period end, settlement is done to move the charges from WBS to cost center. When settlement is done, costs for the other cost elements related to that WBS are getting posted to the respective GL accounts except this cost element in question.

FYI, we are on ECC 6.0 and using New General Ledger.

[Former Member]

Hi,

Check your freight cost element is part of Allocation structure and Source structure?if it is missing assign and will post now.

Thanks,

Rau

[Former Member]

Thanks, your answer has answered my question to great extent. I have checked the settlement structures and cost element is part of one of the structures. How can I make sure that the settlement structure containing the cost element was used at the time of settlement?

I checked at many places in the IMG, but could not find it yet.

Appreciate your help!!

[Former Member]

Hi,

Can you check allocation structure(cost element is part of ) is assinged to settlement profile which your using for WBS settlement.

one more thing are you settling your cost by cost element or with different cost element check this also in your allocation structure.

Hope this helps you.

Thanks,

Rau

[Former Member]

First of all thanks a lot for your inputs.

I have checked allocation structure (cost element is part of), it is assigned to the Settlement Profile that is used for WBS settlement. The cost is settled by cost element as per the Allocation Structure.

One thing I have noticed in the Allocation Structure is that it has only 4 assignments - Base costs, Tax, Accrual Coupons, and Trade Coupons. Should Freight be listed here??

It may be a stupid question. I am new to Project Systems..

Appreciate your help!!

[iklovski]

Hi,

When you settle a WBS (or internal order), it's a pure CO document with no influence on FI, except for certain cases when you settle to an asset. In this case you credit expense G/L and debit the asset (balance sheet). So, everything is in order.

Regards,

Eli