Settlement rule amount exceeding budgetted amount

[Former Member]

Dear all,

We have following scenario for our Client sytems.

Level 1 WBS are used for orgnization.

Level 2 WBS are used for planning & budgetting.

It will have structure as A0**-GX-**.

Level 3 WBS are used for actual postings.

It will have structure as A0**GX**.

Now under CJ03, when user selects level 2 WBS and then click on settlement rule, can he be allowed to input amount which is more than budgetted amount for this WBS.

If yes,what is the setting we have to do? If no, please tell me why user can not be allowed to do this?

Any pointers on this will be highly appreciated.

Thanks

Tushar Vhora

[Former Member · Accepted solution]

It is not possible to create settlement rule for Level 2 WBS.The WBS element must be identified as account assignment element or billing element in order for you to maintain settlment rule for that WBS element.

Reward points if useful

Regards,

Laxminarsimha

[Former Member · Accepted solution]

Hi,

Thanks for reply.

Tell me can entering amount in settlement rule can be allowed for Level 3 WBS if it has been marked as account assignment element or billing element.

Please clarify.

Regards

Tushar

Edited by: Tushar Vhora on May 19, 2008 10:34 AM

[Former Member · Accepted solution]

Hi Tushar,

I am not very much clear what you are asking for.... Do you want to check the budget against the settlement amount?

In my opinion budget control is for the inflows and not for the outflows from the project. The budget would control the actual postings/committments on the project. While in the settlement you are transfering the actual cost incurred on the project to other cost object.

Thanks

[Former Member · Accepted solution]

Yes, It is allowed for WBS 3, if it has been marked as account assignement or billing element,

Regards,

Laxminarsimha

[Former Member]

Unable to understand your query.

What is stopping you to maintain the amount settlement rule on Level 2 WBS? Settlement will only credit this sender WBS element and I don't think budget or availability control will come into picture and cause any problem. For amount settlement to happen, set the 'Amount Settlement' indicator in settlement profile.

If your case is Level 3 WBS settling to Level 2 WBS and you've got limited budet on Level 2 WBS, you'll have issues while settling because of availability control (if active).

To resolve this you've 2 options:

1. Use settlement cost element (NOT By Cost Element) settlement and exempt this cost element from availability control using T Code OPTK

2. Else adjust the budget on level 2 WBS suitably to allow settlement to happen.

Regards

Sreenivas