Settlement of an Order

Use
The costs that arise from processing an order (for example, costs for material, personnel or external services) have the individual technical objects (equipment, functional locations) as a reference object. The costs are initially collected on the order. They are then transferred to the settlement receiver specified in the settlement rule. The receiver of the costs is independent of the reference object, which merely provides a proposal. Orders are mainly settled automatically at regular intervals. However, you can also settle orders in dialog, individually or in connection with an order group. You can simulate the settlement first in a test run, without saving it.

Prerequisites
You can settle an order if: It is released It has the status Settlement rule created Costs collected for it have not yet been settled A business completion has not yet been performed for it

To settle an order group, you must have created one previously.

Activities
The systems starts the settlement when actual costs have been updated to the order, or the order costs have been transferred to a work breakdown structure element or an operation. If the system cannot generate the necessary settlement rule for each settlement, you must do this manually (see Maintaining a Settlement Rule). Call up the order settlement. Depending on the application component in which you are working, choose one of the following menu paths: Logistics Plant Maintenance Maintenance Processing Environment Order Settlement Logistics Customer Service Service Processing Completion Order Settlement

The system settles the order to the specified receiver. After the settlement, the balance on the order is 0.

In the case of periodic settlement, new costs for the next period can have been collected on the order at the time of settlement. See also: Settlement: Example CO - Settlement

Settlement Rule
Definition
Defines what proportion of the costs on a sender should be settled to which receiver(s). For this, one or more distribution rules are assigned to each settlement sender.

Use
You have to enter the correct settlement rule into the system, to ensure that the costs incurred in the execution of the maintenance work can be settled correctly.

The system does not create a separate settlement rule for objects contained in the object list of an order. If you want to identify the costs individually for each object, you have to create a separate maintenance order for each object. If you want to settle sub-orders differently to the superior main orders, you can calculate the settlement rule for these sub-orders accordingly in Customizing by choosing Plant Maintenance Maintenance and Service Processing Maintenance and Service Orders Functions and Settings for Order Types Define Settlement Rule, Time and Distribution Rule. The account assignment proposal, which was created for the main order in the settlement profile, is then overridden. For each order type, the system proposes a particular account assignment, which has been defined for this order type in your company. If the receiver is specified in the location and account assignment data, the system automatically creates a settlement rule for the order, containing a distribution rule of 100 percent to the respective receiver. Different settlement receivers are available for settling an order. The system administration uses the Customizing functions to define at which of the following stages the settlement rule must have been specified: When the order is released Only when the order is completed

Structure
The settlement rule comprises: Distribution rules Settlement parameters for a sender object

See also: Settlement of an Order CO - Settlement

Settlement Receiver
Definition
Receiver of the costs which arise from the processing of an order. The receiver of the costs is identified by the receiver category (for example, "cost center") and the receiver key (for example, "511").

Use
The receiver types that can be used include: Fixed asset Cost center Work breakdown structure element (WBS element) Order G/L account Material Asset under construction (AuC)

You can see a list of receiver categories if you choose Settlement receivers on the selection screen for list editing of an order. Irrespective of which receiver category you have chosen, the costs are initially collected on the order and then settled to the individual receivers in a separate step. Fixed Asset

You can settle the costs to a fixed asset and thereby increase its value. For this, you must specify a reference date in the settlement rule. The fixed asset might be the one to which all the objects assigned to the order belong. Cost Center You can settle the costs to the cost center of the reference object. However, you can also settle the costs to another cost center, which you enter individually. Work Breakdown Structure Element You can settle the costs for funds management and project planning for maintenance tasks or special activities to a work breakdown structure element. Order You can settle the costs from several orders to another order. For example, you can then settle the costs from individual orders, which have been collected on these orders themselves, collectively to the required order. The receiver order might be a collective payment order for particular activities that are only settled at the end of the year. G/L Account You can settle the costs to a G/L account. The account may be one to which costs to be activated are posted if you do not use SAP Asset Accounting. Material You can settle the collected costs from refurbishment orders to the material to be refurbished. Depending on the settings in Customizing, the settlement rule is either generated when the order is released or when the order is completed. The order can only be settled after the settlement rule has been generated. The order is credited after the refurbished material has been returned to the warehouse. The order balance is subsequently settled to the material account according to the current price. If you want some of the costs to go into the costs settlement, then you can change the distribution rule manually for these costs. Asset Under Construction (AuC) You can settle the costs that have been collected on an investment order to an AuC. In this case, the system automatically generates a settlement rule for the AuC when the costs are first settled. If some of the costs collected on the order are to go into the costs settlement, then you can create another settlement rule (preliminary settlement) manually for these costs.

You can test particular settlements to find out which type of settlement is most suitable for you. To simulate depreciation for an order, choose the tab page Investment in the investment order and then Depreciation simulation. The system saves the data from the depreciation simulation. The order subsequently receives a corresponding status. As soon as the fixed asset is completed, you can create and process your data from the order. In the case of full settlement, the system posts the values that were originally on the AuC to the completed fixed asset. For more information, see Settlement of an Asset Under Construction and Method under FI - Asset Accounting. Depreciation Calculation

Creating or Generating a Settlement Rule

Use
As a rule, the system determines the settlement rule for an order automatically from the object data. If no object has been entered in the order, or if you do not want the order settled in the way proposed by the system, you must enter the settlement rule manually. If you use background processing, the distribution rule can be generated as a default by the system.

Procedure
Creating a Settlement Rule Manually
1. Call up the order in change mode. 2. Choose Settlement rule.
The following cases can occur: o If a settlement rule already exists for the order, you reach the screen Maintain Settlement Rule: Overview directly.

Check the settlement rule. To change it, go to detail data on the Maintain Settlement Rule: Distribution Rules screen, where you can make additional entries. o If a settlement rule does not yet exist for the order, you must first specify whether you want to maintain the settlement rule with or without the system proposal for the distribution rule. A screen appears where you can maintain the settlement rule.

Make all the necessary entries on this screen. 1. Return to the order and save it.

Generating a Settlement Rule with Proposal for the Distribution Rule

1. Call up the order in change mode. 2. Choose Order Functions Generate settlement rule.
The following cases can occur: o If all the data, which the system requires to generate a proposal for the distribution rule, has already been entered, then the system automatically creates a suitable settlement rule for the order.

To display the proposal generated for the distribution rule, choose Settlement rule and open the detail data. o If certain data, which the system requires to generate a proposal for the distribution rule, is missing, then the settlement rule must be entered manually, as described above.

1. Return to the order and save it.

Settlement: Example
The following example illustrates the creation and processing of an order from the point of view of order settlement.

The Order
In a clarification plant, three pumps are to be cleaned in the pumping station. All three pumps are installed at the same functional location.

Planning and Planning Data

The planner creates an order, enters the functional location C1-B01 (pumping station) as a reference object and enters the three pumps in the object list. The order is to be settled to the pumping station cost center, which has the number 511. This means that all the costs posted to the order for cleaning the three pumps will be settled to cost center 511 when the job is complete. The order data comprises the following: Data on the Performing Work Center "PSC" (pump fitters) Number of persons performing the job Performing cost center (= cost center of the employees performing the job) Entry 2 909

Activity type Planned number of work hours per person per pump Cost of activity type per hour Total planned work hours Total labor costs Data for Scheduled Material Consumption posting to the amount of

Cleaning 1 $ 150 6 $ 900 Entry $ 150

Releasing and Processing the Order

Once the planning stage is complete, the planner releases the order for processing. The employees from work center "PSC" start the work: They withdraw the material scheduled for the order from the warehouse. Actual costs of $150 are incurred for the order and are debited directly from the balance sheet account. The employees confirm the length of time they worked on the order. It took them a little longer than planned, so that the resulting actual costs posted to the order are $1050. These costs are credited to the performing work center.

Situation After Completion of the Work

After the work has been completed and the order settled, the debits are as follows: Balance on the order: Debit to the receiver cost center 511 (pumping station): $ 1200.00 $ 0.00

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