WBS settlement to AUC - use original cost elements?

[former_member211711]

Hello gurus

We have an allocation structure which settles project WBS costs to AUC.

The issue is that it is using a single settlement cost element for all the costs going to the AUC.

I notice there is a tick box 'by cost element' in the 'Allocation structure:settlement cost elements' entry for FXA.

What is the result of using this tick box?

We would like the original cost elements in the WBS to be credited rather than the single one.

Is this possible?

Thanks everyone

[sanjeevc · Accepted solution]

Hi,

by cost element box means is Debit cost element = Credit cost element

Examples: You can trace the capital spending required for an asset you are constructing yourself as costs in a capital spending order. These costs are settled by cost element to a balance sheet account at the end of the year or after the order has been closed.

so in your case you are not using any secondary cost which come by assessment run (overhead cost) by CO team if this is the case then no tick mark are required in allocation structure.

Regards,
Sanjeev

[former_member211711 · Accepted solution]

You have just quoted the F1 help text.

That does not explain when to use the tickbox and when not..

[sanjeevc · Accepted solution]

Hello,

that does not explain when to use tickbox and when not..

yes but you can use tick box either then when you know the use of that tick box:)

so for that you have know first uses of that tick box and what would be impact if use tickbox and if not use tickbox. and this will come by experience or sap help.

Regards,
Sanjeev

[Paulo_Vitoriano · Accepted solution]

Hello Alex,

If you select a tick box, you will get the system behaving exactly as you want: it will post individual credits for all your debit cost elements (we assume you have just primary cost elements).  So, in terms of your reconciliation you can exactly match at the level of each account how much is posted and how much is settled.

Regards,

Paulo

[kenmelching · Accepted solution]

Like Paulo said, if you use settle by cost element you will get what you are asking for.  But this makes reporting very difficult.  You will now have debits to the WBS for incoming costs and then credits to the WBS on those same cost elements from settlement.  They typical configuration is to define a series of Assignments on the Allocation structure to get some level of breakdown.  Your configuration apparently only has one Assignment.  That is very simple but very crude as well.

[former_member211711]

Many thanks Paolo and Ken, we will consider either the cost element settlement option or more likely, create some additional settlement cost elements with new assignments for the different WBS phases. Hopefully this will make the ledger entries easier to understand for the accountants.

Regards

Aleksey

[former_member211711]

Hi

- we do not have secondary cost elements posted

- we do not use budget checking

As I said, we would like the original cost elements against the WBS to be credited. The single one is causing problems because it posts in total to 55291 (as in the configuration) which does not reconcile back to the many cost elements posted to the WBS.

Is this possible?

What is the effect of the check box 'by cost element' as we do not understand the help text on this checkbox field and are not sure if this could solve the problem (or there is a downside to using this). If this is not possible we would like to know as well.

Thanks all

[Paulo_Vitoriano]

I cannot agree that it is difficult to observe a balance on a single object.  But back to your question, - it is possible for primary cost elements.

[Paulo_Vitoriano]

Hello Aleksey,

If you have any secondary cost elements they cannot be credited under original cost elements.

If you plan to use or using active budget availability control it also can look like your budget is back to the project.

There is a special cost element for external settlement, since on the debit side you have a balance sheet account.

I think instead of trying your own solution for something you can share the business requirement and the SCN community can see if other options are available.

Regards,

Paulo