Settlement Error : Message No. KD561

[Former Member]

My client has the following requirement,

For Example,

Client has undertaken a million dollar project for a customer. It has encurred a cost (for example say $500k). The WBSE element used to caputre the cost is defined as Account Assignment as well as Billing element. The project reaches a certain milestone and the customer is send a invoice for a payment of $100K. We have assigned the same WBSE during the creation of Sales order and created the billing invoice of $100K. We are not using the milestone. The above cost is Expense and not to be captalized. The revenue received from the customer is to be booked against the cost incuured on the project. At the end of the month, we settle all the cost on the expense project to the Cost Center.

When I run CJI3 for that particular WBSE, following are the entires,

a.........Dr. 500K

b........Cr. 100K

Total Cost ...400K

At the end of the month, when I am trying to settle the WBSE to the cost center (in the settlement profile, CCtr is a valid reciever), it gives me the below error message,

"Settlmnt from revenues/debit-side down paymnts to receiver CTR 101500015 not allowed

Message no. KD561

Diagnosis

The sender has revenues or customer down payments with cost element 51810010 (business transaction: CO Through-postings from FI).

You cannot settle these revenues or customer down payments to receiver CTR 101500015.

Procedure

Change the settlement rule for the sender. It can be useful, for example, to use a source structure to settle costs and revenues separately to different receivers.

Note

Revenues or customer down payments can only be settled to G/L accounts, profitability segments, sales documents, real estate objects, orders with revenues, or WBS elements."

Any suggestion would be appreciated. Any suggestion for the alternative ways to perform the above scenarios.?

Regards,

[former_member711289]

Hi Jatin,

In your case your are dealing with customer project as revenue is coming to the wbse. You can maintain cost and revenue both on same wbs with the source structure in settlement. While settlement of revenue is concern, you cant settle revenue to cost center and you need to settle it to PSG which is re commanded by SAP. In case you dont have copa than you need to settle it to GL account.

Regards

Abhishek Sinha

[Former Member]

Dear Jatin,

There is a confusion in your statement, in the first line you have mentioned

Client has undertaken a million dollar project for a customer

So we understand it to be a Customer Project, for which there will be a revenue.Further in your query you have mentioned,

At the end of the month, we settle all the cost on the expense project to the Cost Center

Here you have mentioned it as Expense project, so should we assume it as "Overhead Cost Project",If it is so then your settlement to cost center is correct,In this case you should not generate any revenue.

But if your first statement is correct, then your settlement reciever should be reconsidered as mentioned by Praveen.

[Former Member]

Hi Ravi and Praveen,

Appreciate for taking your time to answer the query.

To be more clear, the project is a combo project (Capital and Expense). However certain cost on the project is expensed. A customer is billed to recover some of the expenses when a certain milestone is reached.

We were thinking about using the same WBSE for capturing cost and revenue (at the time of billing to customer) by definind the WBSE as Account Assignment and Billing Element so that we have a complete picture of all the cost and revenue associated with the project.

How would you approach to meet the above requriement.

Regards,

[Former Member]

Hi,

1.

The scenario needs your allocation strcuture to be defined accordingly & two settlement rules need to be maintained

For example, all costs to "Cost Center" & all revenues to "PSG (if COPA is active) or "GLAccount".

If you assign this source structure to your WBSE, then you ll find a new field in the settlement rule for "Source Assignments"

Select costs & revenues separately for the different receivers.

2.

SAP note "115423" is helpful to make KD561 a warning message instead of Error.

regards

[virendra_pal]

You can also split the project to level two with teo WBS elements one for cost and one for revenue

The level 1 will show everything

Level2 cost WBS settle to cost centre

Level 2 rev WBS assign to sales order, settle to GL, or COPA or no settlement necessary

[Former Member]

SONETA,

You cannot post the revenues to a cost center, cost center can only hold the expenses not the revenues.

Change your WBSE settlement rule receiver category from CTR to PSG and enter either sale order number or customer number as receiver.

Regards,

Praveen