Project Settlement

[Former Member]

Hi PS experts,

Normally Settlement belongs Internal Settlement & External Settlemennt. I m very confusing regarding project settlement. Can any body suggested regarding Project Settlement regarding points?

1. How can we settle the Project means to material or G/l account

2. Is it reqired Activities requiered to settle?

3. Is it correct Sellement Cost Object (WBS) is Billing Element

4. What is the procedure normal SAP refered for Project Settlement.

Regards

Raj

[Former Member]

answered

[Former Member]

Hi,

The Project may be two types, one is project for internal & for external (Customer project).

For internal projects the settlement will be done against the ASSET.

For External project it is billing & Result analysis key.Bill to customer.

The planning profile will be created for the Internal projects & assigned as investment measures & settle against the AUC & after completion of project it was captilze to Asset.

For External profile,the sales order will be created against the project & each stage of project completion the customer will be billed for this & the result anlysis key will be used to settle the bill amount to WBS & move to profit center by settling its to any cost object.

Regards,

Raj

[Former Member]

As such, internal/external settlements are not distinct settlement types. Settlement can settle costs to internal/external receivers. External receivers are FI related, where as internal receivers are CO related. Here is the SAP link that provides a great deal of information in this regard:

http://help.sap.com/erp2005_ehp_02/helpdata/en/86/98853478616434e10000009b38f83b/frameset.htm

To answer your questions:

1. How can we settle the Project means to material or G/l account - you will need to specify G/L as valid settlement receivers in the settlement profile. You will specify the G/L account number as the settlement receiver in the settlement rule for the object (WBS/Network activity, etc...)

2. Is it reqired Activities requiered to settle? - it is completely a decision to be made based on business requirements. Normally, if you are using network activities to collect costs, it makes sense to settle them, because project objects are meant to collect costs on a temporary basis to be passed on to a valid receiver later on (periodically, at completion, etc...).

3. Is it correct Sellement Cost Object (WBS) is Billing Element - not necessarily and many times it's not, unless you carry Results Analysis and settle the results analysis data to the receivers (everything else in the project then settles to this WBS). Again, it depends on your business requirements.

4. What is the procedure normal SAP refered for Project Settlement - there are several SAP standard options, but none is configured by default for your project. You will need to configure the system to use one of these options or create further options using configuration/customization.

If you have more questions, explain the business scenario, so we'll be able to solve individual issues. Topics such as Settlement are extremely broad in scope and the process around it could range from none to the very purpose of executing the task as a project.