BUSINESS PROCESS PROCEDURE

Title: Organization/Area: EUP Category: Module / File Responsibility: Settle an Internal Order using Individual Processing Internal Orders Controlling Solution/Release: Status: R/3 4.6C Complete

Controlling

Overview
Trigger:
The Enterprise needs to settle an internal order to a receiver.
Business Process Procedure Overview Use this transaction to settle actual primary and secondary costs and revenues (if applicable) to the receivers established in the orders settlement rules. The orders settlement rules are dependent on the parameters established in the Settlement Structure, Settlement Profile, and Order Type (all defined in Customizing). Orders created in Controlling Internal Orders, Investment Management and Cost Object Controlling, and, Logistics Production, Production Processing, Plant Maintenance, Service Management, and, Quality Management all use this transaction to settle costs to receivers. Settlement can occur periodically (to facilitate expense recognition in the period incurred) or all at once. In the settlement process, the program reads the line items posted to the order, then, settles them to the receiver by writing offsetting line items to the sender (the order this offsets the original postings) and receiver using settlement cost elements. The settlement cost elements may differ from the source cost elements; therefore, a one to one relationship is not mandatory. Both are defined in the Settlement Structure in Customizing. Although CO objects, CO internal orders can be configured to settle to FI objects such as Assets or GL accounts.

Input Required Fields Order Settlement period Fiscal year Processing type Posting period Asset value date

Field Value/Comments The order to be settled. Works with the Settlement Type parameter contained in the orders settlement rule. Settles period to date for FUL and the referenced period only for PER. Defines how individual settlement rules are processed. Conditional post this months values into a future period by entering the future period here. The fiscal years must be the same. Conditional enter a capitalization date here if the order is an Investment measure. This date is required to initialize depreciation calculations.

Output - Results Settlement posted. No transaction data

Comments The message Processing completed with no errors will appear under the heading Results. The message No transaction data posted since last settlement will appear on the status bar.

Tips and Tricks

This transaction settles a single order (individual processing). Use the following transaction codes in the referenced applications to settle many orders collectively:

Procedural Steps
Last changed on: Last changed by: Version: File Name 01 Page: 1 of 5

BUSINESS PROCESS PROCEDURE

Title: Organization/Area: EUP Category: Module / File Responsibility: 1.1. Settle an Internal Order using Individual Processing Internal Orders Controlling Solution/Release: Status: R/3 4.6C Complete

Controlling

Access transaction by:

Accounting>Controlling>Internal Orders>Period-end closing>Single functions>Settlement>Individual processing; or, Accounting>Contolling>Product Cost Controlling>Cost Object Controlling>Product Cost by Order>Period-End Closing>Single Functions>Settlement>Individual Processing; or, Accounting>Contolling>Product Cost Controlling>Cost Object Controlling>Intangible Goods and Services>PeriodEnd Closing>Single Functions: Order>Settlement>Individual Processing; or,

Via Menus

Via Transaction Code

KO88

1.2.

On screen Actual Settlement: Order, enter information in the fields as specified in the table below:

Field Name Order

Description Order number.

R/O/C R

User Action and Values Enter the number of the order that you need to settle.

Comments

Last changed on:

Last changed by:

Version: File Name

01

Page: 2 of 5

BUSINESS PROCESS PROCEDURE

Title: Organization/Area: EUP Category: Module / File Responsibility:
Settlement period

Settle an Internal Order using Individual Processing Internal Orders Controlling Solution/Release: Status:
R

Controlling
Period for which the settlement is performed. If FUL all values for the fiscal year to date are settled; if PER only values for this period in the fiscal year are settled. Fiscal year for which the settlement is performed. Defines how the individual settlement rules are processed. Period in which to post the settlement results. Asset capitalization date. The period can differ from the Settlement period, however, the Fiscal years must be the same.

R/3 4.6C Complete

Enter a period.

Fiscal year Processing type Posting period

R R

Enter a fiscal year. Automatic for settlement to most receivers. All distribution rules are selected. Use this parameter to settle this months values into a future period, otherwise, leave the field blank. Use this field if the order is an Investment measure.

Asset value date

(Note: On above table, in column R/O/C; R = Required, O = Optional, C = Conditional)

1.2.1. Activate the Test run indicator to validate the sender/receiver relationship with no postings. In a test run, an error will produce an error message that can be resolved before the production run. Deactivate the indicator to run the settlement in Production mode with postings. 1.2.2. When active, the Check trans. data indicator verifies that transaction data posted to the sender in the settlement period before it runs the settlement program. If no transaction data is present, the program terminates with a message No transaction data posted since last settlement. It is conceivable that one order may be settled many times during a month end closing cycle, so, this indicator can be a real time saver. Be sure that the settlement runs without errors in test mode (see step 1.2.1. above) before activating this indicator in production mode. 1.2.3. Click on the Settlement rule button to display the target orders settlement rules. Click on the back button to return to the Actual Settlement: Order screen. 1.2.4. Click on the Execute button to process the settlement and proceed to the Actual Settlement: Order Basic list screen.

1.3.

On screen Actual Settlement: Order Basic list, the results of the settlement are displayed.

Last changed on:

Last changed by:

Version: File Name

01

Page: 3 of 5

BUSINESS PROCESS PROCEDURE

Title: Organization/Area: EUP Category: Module / File Responsibility: Settle an Internal Order using Individual Processing Internal Orders Controlling Solution/Release: Status: R/3 4.6C Complete

Controlling

Last changed on:

Last changed by:

Version: File Name

01

Page: 4 of 5

BUSINESS PROCESS PROCEDURE

Title: Organization/Area: EUP Category: Module / File Responsibility: Settle an Internal Order using Individual Processing Internal Orders Controlling Solution/Release: Status: R/3 4.6C Complete

Controlling

1.3.1. The message: Processing completed with no errors should appear under the heading Result, otherwise, an error log will be displayed. Correct any errors and re-execute the settlement. 1.3.1.1. Display Sender/Receiver information by clicking on the Detailed Lists button, the Actual Settlement: Order Detail list is displayed. 1.3.1.1.1. Select a line in the list then click on the Sender button to display details on the sender including the source cost elements and values. 1.3.1.1.2. Select a line in the list then click on the Receiver button to display details on the receivers including the settlement cost element and values. 1.3.1.2. The CO document that was created by the settlement can be viewed by selecting a line item in the list and clicking on the Accounting documents button. The Display Actual Cost Documents screen is displayed. Navigate to other relevant documents (like a financial accounting document in a settlement to an asset or G/L object, for example) using the followon menu path: Environment>Accounting document (or any other relevant document). 1.3.1.3. Exit.

Last changed on:

Last changed by:

Version: File Name

01

Page: 5 of 5