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Author's profile photo Paulo Vitoriano

Generate settlement rules for Network Activities

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


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.


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:


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.


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


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:


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:


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:


You are welcome to suggest any improvements to this article.

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


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      Author's profile photo Saurabh Tiwari
      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


      Author's profile photo Nabeel Bhatty
      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!!


      Author's profile photo violah Nasasira
      violah Nasasira

      Hello Paulo,


      How can I generate settlement rules for WBS elements?

      Author's profile photo Paulo Vitoriano
      Paulo Vitoriano
      Blog Post Author

      Hi Violah,

      Are you asking me to create another blog post?  It is also a standard customizing, with few exceptions.  Where do you want to settle your WBS?




      Author's profile photo violah Nasasira
      violah Nasasira

      Hi Paulo,


      It would be wonderful if you created another blog post.


      I would like to settle to a higher WBS element in the hierarchy.

      Eg if I have the follow WBS elements





      Then I should settle CP-000321-PC-01, CP-000321-PC-02 and CP-000321-PC-03 to CP-000321-PC

      Author's profile photo Paulo Vitoriano
      Paulo Vitoriano
      Blog Post Author

      SAP does not recommend such type of settlement.  If you wish so there is an OSS note 211324.

      Author's profile photo violah Nasasira
      violah Nasasira

      Hi Paulo,


      I am very grateful. Thank you for the support.

      Author's profile photo violah Nasasira
      violah Nasasira

      Hello Paulo,

      I need your assistance again.

      I have a project that has costs at WBS element but even when I run settlement, they can not move to the AUC.

      If the wbs element is in status released, full or automatic settlement runs with no error but the costs do not move to the auc.

      But if I set the wbs element to TECO and run a full settlement it returns the error below

      Author's profile photo Paulo Vitoriano
      Paulo Vitoriano
      Blog Post Author

      Sorry, but you should not hijack the blog comments to raise functional questions.  You can search the forum based on the error class/number from the long text.