Settlement Profile Configuration

Introduction – 

The settlement profile is a prerequisite for settlement process flow.

In this blog post, will try to cover parameters related to the Settlement profile configuration.

Settlement profile configuration

Parameters for configuration explained as below – 

1. Actual Cost/ Cost of Sales

• To be settled in full – Object needs to be with value 0, before close status or deletion flag.

• Can be settled – Only warning message, when Object is set to close status or deletion flag, if the balance, not 0.

• Not for settlement – No message, when you set the close status for the object or deletion flag, even if the balance is not 0.

2. Valid Receivers

• Multiple options available, as an example – WBSE, CC, Network, FXA, G/L, Sales order, Material, Profit segment, Order, Order Item, etc.

• Choose “settlement not allowed” – To exclude the receiver from settlement rule

• Choose ” can be settled “ – Can include receiver in settlement rule.

• Choose ” Must be settled “ – Must include receiver in one settlement rule at least.

3. Default Values

• Allocation structure – Used to Allocate cost posted/incurred on a sender by cost element or cost element group.

• Source structure – It is used to split costs posted by cost element, further settle costs incurred on the sender to various receivers.

• PA transfer structure – Used to transfer, FI posting to Profitability Analysis. In PA transfer structure relevant accounts are assigned to value fields in Profitability Analysis, through assignment lines.

• Default object type – Default receiver object type for the rule

4. Indicators

• 100%-validation – Set this indicator. The system issues a warning when total is <> 100%. Else, system issues a warning, when the total is > 100%.

• %-Settlement – This indicator, allows the use of costs to be settled, distributed in percentage.

• Equivalence Numbers – This indicator, allows the use of costs to be settled, using equivalence proportion.

• Amount Settlement – This indicator, allows the use of costs to be settled, using Amount.

• Variances to Costing Based PA – This indicator, allows variances to pass to Costing Based PA during order settlement.

5. Other Parameters

• Document type – Doc type for Settlement

• Maximum number distribution .rules – Maximum number of distribution rules for each settlement rule. The settlement rule is a combination or else comprise of distribution rule. No Distribution rule, no settlement!

Note – In the last step, assign the project profile to the settlement profile.

Conclusion – 

This blog post highlights the config parameters of settlement profile. In the next edition will cover the process flow of settlement.

Regards

Aditya Sibal