Project specific settlement

[jamshed_khan2]

Dear Experts,

I have one requirement where client wants to procure consumables items eg: diesel, petrol, electrode etc specific to project.They want to book all these cost to a common object eg: internal order, wbs etc. so that they can distribute this cost to the relevant project at the end of the year.

Cann you let me know if this requirement can we met by booking the cost to the internal order and settling the cost to the wbs for the project using settlement profile.

Also if you can let me know what is the item category we have to select for such scenario in PO so that we can capture the cost to the internal order.

One more thing is that client wants to settle the cost at the end of the year and not monthly. SO question is whether yearly settlement is possible using internal order.

Please give some suggestion so that we can map the same for the client.

Thanks and Regards:

Jamshed

[ajaycwa1981 · Accepted solution]

Hi Jamshed

Its possible.. Please read through

1. You should use AAC = F (Internal Orders) or Q (WBS Element) in the PO to book the costs to Internal Order or WBSE

2. You should select the Settlement type FUL and not PER in the Order or WBSE so that you are able to settle the entire amount at once at the end of the year

3. Internal Order or WBS can only "Settle" and not "Distribute"..

The difference between both - Settlement gives very few options to allocate such as Amount settlement or % Settlement

Distribute (Assessment or Distribution Cycle) allow you to allocate based on SKF, Activity types, Amount, % etc

So, it depends on what you want

Ajay M

[jamshed_khan2 · Accepted solution]

Hi Ajay,

Thanks for the input. Much Appreciated.. just one more clarification.

Since these are direct consultion so I will  book all the cost to the internal order in PO and using KO88 we can settle the cost of internal order to respective wbs as per % or amount.

Is that correct. One more thing.

Steps: create allocation structure with wbs as settlement receiver

In source we will assign the cost element of consumables

settlement profile:" oko7: with wbs as default object type:make the field of wbs as optional

create order type in KOT2

and then we will create the order: KO01

REgards:

Jamshed

[ajaycwa1981 · Accepted solution]

Yes, you are right

Please follow these steps

Ajay M

[jamshed_khan2 · Accepted solution]

Hi Ajay,

Thanks for your valuable comments.

Regards:

Jamshed

[ajaycwa1981 · Accepted solution]

Hi Jamshed

you can also use internal orders as senders in assessment cycle, following note 605281

Ajay M