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Free Cost Objects - Settlement

Hi gurus

I have been looking at the process to post costs specific to an vehicle and wanted to use a Free Cost Object to capture these costs. This way I'm able to post PO Costs, toll charges, fuel etc. from PO's, expenses and/or journal entry.

However, I was trying to set up settlement from the Cost Object to a cost centre or customer project and I can't. The only other option is to settle to another free cost object.

I have check the configuration in Fine Tuning and there doesn't seem to be any help here to update the cost object.

I have checked in the Maintain Account Assignment Types where the Cost Object type was create, I can't add Cost Centre or Project Task to the list of available account assignment.

Does anyone know how I can settle a cost object to a cost centre ?

Thanks and regards



Hi Chris,

Currently there is no possibility of distribute the Cost between Free Cost Object and Cost Center using a distribution Rule. Currently it is not possible to set a distribution rule for the Free Cost Object. The following options are available in the system.

1. Settlement Run: This run distributes the cost from one Free Cost Object to another Free Cost Objects. There is no option to select the cost center as the receiver side. Here the sender and receiver both will be the Cost Object.

2. Distribution Rule: Using this rule, you can distribute the cost accumulated on the Cost center to either the Project/Project Tasks or the Cost centers. Again in this case, the Sender will always be the cost center.

Could you try this workaround if this fits the requirement

Distribute it from one cost object to another and maintain the correct profit centers against each cost object. That way on profit center level you would get the correct amounts.


Lokesh Sharma

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