Project Settlement to a Cost Center

[Former Member]

I am trying to settle the entire project to a single cost center. We are using network activities, which are associated to WBS elements and there is one network for the whole project. There are no costs on the WBS elements but we have some custom reports which report rolled-up costs on WBS elements from the activities.

Can anyone please suggest the kind of settings to be made in the settlemet profile, allocation structure? Is it possible at all to settle all the costs from the network activity directly to a cost center, without defining a settlement rule in each of the network activities with a distribution rule to a cost center?

Thanks a lot in advance for all the help.

Venkat.

[Former Member]

You have to first settle the Network to its assigned WBS & then all the WBS to cost center.

To Generate Settlement rule automatically follow the procedure:

Follow the steps:

Define/Edit Allocation Structure:

(PS->costs->Auto & Periodic Allocations->Settlement->Settlement profile->Create Allocation St)

Assignments-Source-Specify Cost elements from to

Assignments-Settlement cost elements

Receiver Category: WBS, tick by cost elements (for N/W)

Receiver category: Cost Center, tick by cost elem(for WBS)

maintain this allocation structure in settlement profile

Define Strategy for settlement of WBS to Cost CTR

If you are specifying Responsible cost center, maintain it in WBS.

Create Settlement Rule automatically CJB2

OR generate settlement rule manually

Execute Settlement CJ88

SSanjay

Edited by: Sanjay Mane on Feb 29, 2008 12:16 PM

[Former Member]

Thanks for the quick response. I had already tested this and it works fine. But, the client does not want to do it. Instead of rolling the cost up through the WBS element hierarchy, they want to directly settle them from the activity to the cost center to avoid all the processing it requires. The cost center does not have to be the WBS responsible cost center. They want to settle to a single "collection" cost center. Is this possible?

[Former Member]

Hello,

You can settle the activity cost directly to cost center. You need to have settlement profile that allows settlement to cost center. Use this profile in network activity settlement parameters. Prerequisite is that you have already maintained allocation structure and PA transfer structure and use them in settlement parameters.Now create a settlement rule with reciever a cost center.

The above settings will allow an activity to be settled to cost center. Coming to second part of not creating the rule for each activity,you can generate settlement rules for all the activities automatically. This has been described in the earlier post. So you dont have to create the rule manually for each activity.

Thanks,

Sourabh

[Former Member]

Hello,

Since you are settling the entire project to a single cost center, you can settle your top WBS - highest level WBS to a cost center. Hence you have to create settlement rule only once in the top WBS. All the cost from network activities will be rolled up to top WBS and you can settle that.

Hope the above is helpful.

Sourabh