Free Book Sample: Product Cost Controlling with SAP

By John Jordan

Read this sample chapter from Product Cost Controlling with SAP by John Jordan to learn more about settlement configuration and period-end processing, from settlement profiles and the allocation structure to parameters and processing types. It also examines the new settlement-related transactions available with SAP S/4HANA.

Chapter 17 Settlement

Settlement transfers work in process (WIP) and variances to FI, PCA, and CO-PA. You can also transfer variance categories to value fields in costing-based CO-PA. In this chapter, we’ll discuss settlement configuration including the settlement profile, allocation structure, source structure, and PA transfer structure. We’ll then discuss settlement period-end processing, including parameters and processing options.

17.1 Settlement Configuration

Settlement configuration for product cost by period and product cost by order are similar. We’ll look at settlement configuration for product cost by period and highlight the differences along the way.

17.1.1 Settlement Profile

A settlement profile contains settlement control parameters on how orders settle. You can enter the settlement profile in the order type definition with Transaction KOT2 or by following the IMG menu path:

Controlling • Product Cost Controlling • Cost Object Controlling • Product Cost by Order • Manufacturing Orders • Check Order Types

When you create an order, the settlement profile contained in the order type defaults into the order settlement rule. To display the settlement profile in a production order, follow these steps:

1. Display a production order with Transaction CO02.

2. Select Header  Settlement Rule from the menu bar.

3. You’ll see a list of distribution rules that define where the costs are to settle.

Select Goto  Settlement Parameters from the menu bar to display the screen shown in Figure 17.1.

Keep reading...