Hierarchy
BBPCRM (Software Component) BBPCRM⤷
CRM (Application Component) Customer Relationship Management⤷
CRM_APPLICATION (Package) All CRM Components Without Special Structure Packages⤷
CIIC (Package) CIM integration: Customizing
IMG Activity
| ID | PPPI_PO_440 | Define Settlements |
| Transaction Code | S_ALR_87007337 | IMG Activity: PPPI_PO_440 |
| Created on | 19981222 | |
| Customizing Attributes | PPPI_PO_440 | Define Settlements |
| Customizing Activity | PPPI_PO_440 | Define Settlements |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | PPPI_PO_440 |
Here you define parameters for settlement. Settlement transfers the actual costs assigned to the order to one or more receivers (normally the material being manufactured). The variances between the original inventory valuation and the actual costs are transferred to Financial Accounting, Profit Center Accounting and Profitability Analysis.
When you settle, the work in process is transferred to Financial Accounting and Profit Center Accounting. Work in process is always settled by period.
Full Settlement
Full settlement is used for production orders and process orders in the Product Cost by Order component.
Each goods receipt results in a preliminary valuation of the inventory.
- If you use price control S, the delivered quantity is valuated with the standard price in the material master record.
- If you use price control V, the delivered quantity is valuated with a price selected through the valuation variant for the valuation of goods received.
When the order is completed (status delivered), settlement performs the following functions:
- Brings the order balance to zero
- Passes the difference between the preliminary inventory valuation and the actual costs to inventory.
The settlement rule for this settlement is generated from the default rule PP1 for the relevant plant in the parameters that depend on the order type.
Depending on the price control, the system debits either the balance sheet account (price control indicator V) or a price difference account (price control indicator S) with the difference during settlement. The material account determination determines the primary cost element (such as for semifinished products or finished products) under which the credit is updated on the order.
In standard cost accounting, this difference is analyzed in the variance calculation and a second posting is made for the variances in Profitability Analysis.
If the order doesn't have the status Delivered at the end of the period, you can calculate the work in process and make postings for the work in process in Financial Accounting when you settle. From period to period you calculate the change against the previous period using WIP calculation and settle the amount of the change to Financial Accounting.
For full settlement, you specify the default rule "PP1 Production orders (full settlement)" in the parameters that depend on the order type for the relevant plant.
Periodic Settlement
Periodic settlement is used for product cost collectors and cost object hierarchies in the Product Cost by Period component. It can be used for production orders and process orders in the Product Cost by Order component.
A preliminary valuation of the inventory takes place with every goods receipt.
At the end of the period, the run schedule header carries both variances and the cost of the work in process.
When you settle at the end of the period, you can:
- Generate postings for the change in WIP (Ware in Arbeit) in Financial Accounting and Profit Center Accounting
- Pass the variances to Profitability Analysis
- Pass the net actual costs (actual cost less credit for inventory valuation less work in process less scrap) to Financial Accounting and Profit Center Accounting
For the periodic settlement of manufacturing orders, you specify default rule "PP2 Production orders (periodic settlement)" in the parameters that depend on the order type for the relevant plant.
For the periodic settlement of product cost collectors, you specify default rule STR (with strategy for tracing factor determination).
You can use full settlement and periodic settlement for the settlement receiver "material" for materials that are:
- In the make-to-stock inventory in make-to-stock production
- In the valuated sales order stock with sales-order-related production and valuated project stock
Sales-Order-Related Production
If you are using a valuated sales order stock in sales-order-related production, the flow of quantities and values is the same as in make-to-stock production.
If you are using a nonvaluated sales order stock in sales-order-related production, goods movements are not valuated. Instead, the costs are settled to the sales order and then to Profitability Analysis. No variances are calculated.
The settlement rule for the manufacturing order assigned to a sales order item is generated using the default rule PP1 (full settlement) in the parameters that depend on the order type.
The settlement rule for the sales order is generated automatically if Profitability Analysis is active. If Profitability Analysis is not active, you must manually create a settlement rule to a G/L account.
You can specify in the allocation structure whether the settlement to the sales order should be made under the original cost element or under a settlement cost element.
If you are using a nonvaluated sales order stock, you can only use full settlement for the manufacturing orders assigned to a sales order item. At the end of the period, the costs are settled from the manufacturing orders and process orders assigned to the sales document item to the sales document item. The inventory values are calculated on the sales document item when you perform results analysis. You then settle the inventory values calculated in results analysis to Financial Accounting and Profit Center Accounting.
Settlement Parameters
Settlement requires a settlement rule for the order. When the order is created, the system generates a settlement rule from the default rule in the parameters that depend on the order type:
- For manufacturing orders in lot-based cost controlling the default rule is PP1 (full settlement).
- For manufacturing orders in periodic cost controlling the default rule is PP2 (periodic settlement).
- For product cost collectors the default rule is STR (with strategy for tracing factor determination)
This settlement rule determines the settlement receiver (such as a material or sales order). The settlement rule is linked to the following parameters:
- Settlement profile
- Allocation structure
- Source structure
- PA transfer structure
Standard settings
The standard system contains settlement profiles, allocation structures, source structures, and PA transfer structures.
If you want to use these parameters, do the following:
- Check whether the parameters in the settlement profile meet your requirements.
- Make sure that all relevant cost elements (including the results analysis cost elements for the determination of work in process) are contained in the allocation structure.
- If necessary, define source structures and PA transfer structures according to your requirements.
If the predefined parameters don't meet your requirements, you can change the existing parameters or create new ones.
The following settlement profiles are provided in the standard system:
- PP01 Production Order
This settlement profile allows settlement to a material, G/L account, cost center, order, project, sales order, cost object, or order item.
This settlement profile can also be used
- In joint production
- To settle price differences with a cost object hierarchy
- For the product cost collector
- PI01 Process Order
This settlement profile allows settlement to a material, G/L account, cost center, order, project, sales order, cost object, and an order item. It corresponds to settlement profile PP01.
- SD1 Sales Order, Make-to-Order
This settlement profile allows settlement to a G/L account or profitability segment. It settles the costs and revenues or the results analysis data on a sales order to Profitability Analysis.
This settlement profile is only important with sales orders that have a cost and revenue relevant sales order item.
- CKPH01 Cost Object
This settlement profile allows settlement to a G/L account, cost center, order, profitability segment, and cost object. It settles the costs of a cost object hierarchy.
The settlement profiles are linked to the allocation structure A1. This settlement structure must contain all the cost elements to be settled (including the results analysis cost elements). If you don't settle to a material, you must also specify whether settlement should be made under a settlement cost element or under the original cost element.
If you want to pass variances with these settlement profiles to Profitability Analysis, you must do the following:
- Set the Variances indicator.
- Allow profitability segment as a&#
Business Attributes
| ASAP Roadmap ID | 204 | Establish Functions and Processes |
| Mandatory / Optional | 1 | Mandatory activity |
| Critical / Non-Critical | 1 | Critical |
| Country-Dependency | A | Valid for all countries |
Assigned Application Components
| Documentation Object Class | Documentation Object Name | Current line number | Application Component | Application Component Name |
|---|---|---|---|---|
| SIMG | PPPI_PO_440 | 0 | HLA0006275 | Order Closing |
Maintenance Objects
| Maintenance object type | C | Customizing Object |
| Assigned objects | ||||||
|---|---|---|---|---|---|---|
| Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
| OPKT | T - Individual transaction object | OPKT | PPPI_PO | Define Settlement |
History
| Last changed by/on | SAP | 19981222 |
| SAP Release Created in |
