Settlement Types

[Former Member]

Hi Experts,

There is a particular query which I have on when the full settlement (settlement type : FUL) & when the periodic settlement (settlement type :PER) needs to be carried out ? If suppose we have carried out settlement using settlement type FUL present on a particular WBSe, is it possible to recarry out periodic settlement again? Is this a wrong process?

Can anyone explain me when and where the two settlement types shall need to be used?

Regards

Varun

[MTerence]

Hi Varun

FUL (full settlement):

You can use this settlement type in automatic settlements.

The difference to periodic settlement is that in full settlement you settle each time all the costs that have occurred for a sender object for all the periods prior to the settlement (and are not yet settled).

If PER rules exist, they take precedence over the FUL rule.

Quantities from internal activity allocations are not sent to the receiver. This means that there is no guarantee that actual activity prices, elimination of internal business volume, and variance calculation will take place correctly. For this reason, we do not recommend that you use FUL for cost centers or business processes.

PRE (periodic preliminary settlement):

You can enter PRE rules in the settlement rule for the order. They are used as part of settling capital investment measures.  Depending on the rules you entered, posted debits are settled to the CO receivers or to a G/L account before the periodic settlement.

It is good idea to do this for particular line items if there are additional costs assigned to a capital investment measure that should not be capitalized. This may be necessary, should you wish to monitor the total costs of the measure in controlling

Use:

Note that settlement type FUL permits quantity settlement for primary cost elements only.  You cannot settle quantities to assets.

Note that you cannot manually create or change a distribution rule with settlement type AUC.  This has the following effect on settlement rule maintenance:

The required rule is generated from the asset under construction, which is stored in the master data for a capital investment measure, ( order or WBS element)when you carry out settlement for the first time)

*These informations are already available in SAP system by clicking F1 in settlement types.

Regards

Terence

[Former Member]

Hi Sammar/Terence,

Thanks for the info you people have provided.

We have been using periodic settlement and the current issue we have is that the previous year posted values are still remaining on the WBS elements. Both the financial periods/controlling periods have been closed in the previous fiscal year. Now if I carry out full settlement,  will I be in a position to repost any costs on the same WBSe and recarry out settlement periodically. I dont think this is possible. Can you help me on this?

I have suggested to reopen the closed financial periods and recarry out periodic settlement for which the business has declined. What can be an alternative solution to this issue?

Regards

Varun

[MTerence]

Hi Varun,

I dont think we can do any thing unless the period is open from Project System perspective.

To balance the cost,  I guess FI posting can be made against this WBS element, so contact your finance people, whether they can support you on this.

This should have reported during month end or year end, so they would have reconciled it.

Regards

Terence

[sammar81]

Hi Varun,

Without opening the period I don't think you would be able to settle the cost.. You can give it a try and run settlement in Test Mode by making the changes from PER to FULL.

Or Other way would be to make the error message which you are getting while settling the cost to a warning message and going ahead with the settlement process... You may need to take help from your FICO guys..

But the better way would be to get the period open and settle the cost.

Regards

Sammar

[varshal_kachole3]

Hi,

Please have a look at the SAP note:

424139 - Cross-year settlement

140672 - Info: Settle/reverse costs from previous periods

Hope it Helps!

Thank you and Regards,

Varshal Kachole

[sammar81]

Hi Varun,

The periodic settlement is used if we want to settle the cost incurred for that particular period.. and full settlement is used when all the cost needs to be settled to the receiver.

Assume you have some 100 dollars for period 9. 300 dollars for period 10 and so on, now if you do a PER settlement and settlement is run on period 10 it will settle only 300.

And now if I do a full settlement in this will take into account all the cost booked in all the years upto the settlement period..

Hope it makes some sense..

Regards

Sammar