PS Settlement to Primary Cost Element

[Former Member]

Hi Everyone,

Currently, my company settles all wbs elements through a nightly job to get the expense to the cost center. There are many different types of projects such as Marketing, Legal, Research, etc. that all flow through 1 secondary cost element when settling. When reviewing the cost center that the expense settled to, users have no idea as to where the expense truly came from or what cost element it really related to. I'm pretty sure that its not best practice to have a project settle itself back on the originating primary cost element but is there any other way to view the expense other than running a cost center report and then a PS report? If I had config settle the expense back to the primary cost element, what would be the issue other than a lot of debits and credits on a nightly basis.

Thanks,

Pete

[former_member188826 · Accepted solution]

There won't be any other issue. You may also consider using a settlement/transfer structure to group a set of primary cost element to be settled via minimal categories, similar to the cost component grouping in product costing.

[Former Member · Accepted solution]

Hi Sridhar,

Thanks for the quick reply. So I'm assuming that its not SAP best practice to settle back onto the originating cost element then?

[former_member188826 · Accepted solution]

I wouldn't say that, it may depend upon business requirement and other considerations like increased data etc.

The objective of using WBS or internal orders is to capture the primary events and later transfer to various receiving objects. I think it is good practice to have them settled on a single settlement cost element.

If receiving cost center heads are insisting that they would like to see it, they may be given access to view the total cost on WBS

[Former Member · Accepted solution]

Thanks again. Points applied.

[Former Member · Accepted solution]

Whats the difference between primary settlement cost element and a regular primary cost element?...

Edited by: shruti fico on Apr 18, 2008 8:42 PM

[Former Member · Accepted solution]

Hiya,

There is nothing like a Primary Settlement Cost Element. If it is settlement Cost Element, it is always a Secondary Cost Element.

I hope you are aware of the difference between Primary and Secondary Cost Elements. If not, please start a new thread.

Cheers.