Skip to Content

The purpose of this document is to cover configuration steps required for automatic generation of settlement rules for Network Activities.  The settlement process for Network Activities is a common requirement for CAPEX projects for example, because the AuC has direct link with the WBS-element, so eventually you need to gather all the cost at WBS-element level before the asset settlement.

The business case behind this requirement is quite simple.  Complex CAPEX projects can easily account for hundreds of Network Activities and manual maintenance of the settlement rule will be a very time consuming task.  Not to mention the possibility for human error.

The reason for writing this document is that this topic shows up as a common question quite often. And even though it is not a complicated setup, it still generates a steady volume of posts.

The customizing can be found in IMG under Project System > Costs > Automatic and Periodic Allocations > Settlement > Define Settlement Rule for Network

IMG_01_img_path.PNG

As you can see the customizing part is consisting of three configuration activities.

Step 1: Define Strategies for Determining Settlement Rules

In our sample case I will maintain the rule to the parent WBS-element (keeping in mind the sample CAPEX project scenario).  High lighted record is the Strategy 02 that we need to use in my sample scenario.

IMG_02_strategy_2.PNG

Step 2: Assign Strategies and Default Rules to Network Types

In this activity you need to assign the Strategy and Default Rule to the combination of Plant and Network type:

IMG_03_DfR+strategy_assignment.PNG

Step 3: Specify Default Settlement Profiles for Networks

This is the customizing activity to link the Network type with Settlement Profile.  I am using the “standard” (system pre-delivered) settlement profile 60.

IMG_04_NType2Sett.Prof_assignment.PNG

Apparently the profile should allow the settlement to required receiver data objects, in my case to WBS-elements:

IMG_05_Settlement_profile_60.png

Once the customizing is complete we can proceed with the unit test.

Step 4: Unit Test

First I will create a new CAPEX project with a WBS-element that has IM profile assignment for automatic generation of AuC and a network activity assigned to this WBS-element.  I will use Project Builder transaction CJ20N:

IMG_Project_Builder.png

As soon as I populate the WBS-element field for the Network Activity the system will take me to the settlement rule screen with pre-populated data:

IMG_Settlement_rule.png

When you will be running a settlement with CJ88 you can select the flags for hierarchy and orders to run both settlements in one go:

IMG_CJ88.png

You are welcome to suggest any improvements to this article.

Thank you for your reading time and hope you liked it,

Paulo

To report this post you need to login first.

2 Comments

You must be Logged on to comment or reply to a post.

  1. Saurabh Tiwari

    Hello Paulo,

    Another very good article from you!

    Will appreciate if you could create Part-2 of this document for “Custom Program/Cutomized approaches for automatic generation of settlement rule for WBS elements”

    It is also an area which is repeatedly discussed in PS forum.

    Thanks & Regards

    Saurabh

    (0) 
  2. Nabeel Bhatty

    Great Work Paulo!!

    It is easy to understand and follow the steps, it is a lot of hard work.

    However i have to ask you as to what happens to the Assigned Value after settlement is carried out? Does it stay on the Level where budget check carried out or does it move upward to the parent wbs refreshing the used budget to be used again??

    Your reply is awaited!!

    Regards,

    (0) 

Leave a Reply