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What is the settelement?How many types settelements in sap?




Hi Priya,

You usually use overhead cost orders as an interim collector of costs, and as an aid to planning,monitoring, and reporting processes. When the task is complete, the costs are transferred to their final destination (cost center, WBS element, profitability segment, and so on). This process is called settlement.

In settlement, some or all of the costs posted to an order are allocated to one or more receivers. The offset postings, which credit the order, are generated automatically. You can settle orders individually or collectively.

Before you can settle an order, you must specify where you want to send the costs. There are two procedures for defining settlement: Basic settlement and extended settlement.

Basic settlement allows you to settle 100% of the costs to one cost center or to one G/L account, using one settlement cost element. You enter the data in Period End Closing on the order master record.

Extended settlement allows you to create Settlement Rules in the order master record which enables you to Settle costs to one or more receivers and allow a wide range of receivers (WBS element, sales order, profitability segment, and so on).

Specify how the costs are to be split (distribution rules)

Specify the cost elements to be used for settlement (settlement cost elements or original cost elements).

In extended settlement, the settlement process is controlled by assignments in the Settlement

Parameters on the order master record. These parameters include the settlement profile, settlement structure, PA transfer structure, and so on.

The settlement profile, which specifies the default values for the other parameters, is derived from the order type. You can change the defaulted settlement parameters on the order master record.

You need to specify a settlement profile in the order master, even if you use the basic settlement function. This ensures that a settlement profile is available if you later change to extended settlement.

This information very helpful for you.

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