Finance & Controlling
What is Settlement?
Transferring costs collected on an order or project to final receivers, such as cost centers, assets, or profitability segments.
Settlement rules on the object define receivers and percentages. It is part of the period-end close for internal orders, production orders, and WBS elements. Missing settlement rules are a common close-blocking error.
Related transaction codes
Related terms
Internal Order
A CO object for collecting costs of a specific job or event, such as a marketing campaign, for monitoring and settlement.
Production Order
A discrete manufacturing document specifying what to produce, how much, when, and with which components and operations.
Work Breakdown Structure Element
A hierarchical element of a project's work breakdown structure that collects costs, budget, and revenues.
Asset Under Construction
A special asset type that collects capital costs until a fixed asset is completed and settled to final assets.
Period-End Close
The set of tasks run at month, quarter, or year end to finalize accounting periods and produce reliable financial statements.
More in Finance & Controlling
Planning an S/4HANA move?
Read the field guides on testing an ECC to S/4HANA migration and grab the free template library.