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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.



  1. 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.



  1. 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



  1. 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.



  1. 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.



Aditya Sibal