Controlling Settlement Using the Settlement Profile

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Discuss the settings available in a settlement profile

Settlement Profile Settings

You want to implement a more detailed settlement of your real projects. To be able to set more advanced settlement options, you need to manage a settlement profile. You want to know what the different options are and how to proceed.

Definition and Settings

The settlement profile in SAP S/4HANA is a tool that is used to manage and control the settlement of postings on a real project.

It contains, as represented here, a range of parameters to be set according to its specific requirements regarding:

  • Costs, Down payments (not included in settlement, possible, full settlement)
  • Receivers (objects that are not allowed, possible, mandatory)
  • Settlement additional settings (how data will be allocated depending on the nature of postings or the type of receiver
  • Methods to allocate the settled amounts to receivers in the derivation rules (%, weight factor, amounts, and so on)
  • Storage details (document type, number of distribution rules, storage duration, ledgers, and so on)

Here are the key details related to default values:

  • Allocation Structure: The mechanism by which costs are allocated or moved from a sender object (such as a project) to a receiver object (like a cost center) (covered in previous unit in this course for cost centers in overhead allocation cycles).
  • Source Structure: It is used to differentiate between different categories of costs. It enables the system to allocate differently costs based on their origin.
  • Period-independent and Period-dependent settings: These settings determine when costs should be settled, either at the end of each period (monthly, quarterly, and so on) or at the end of the project.
  • Distribution Rules: These are used to determine how costs are distributed among different receiver objects.
  • Settlement type: It determines whether the costs should be settled fully (Full Settlement) or in part (Partial Settlement).
Note
Automatic Creation of Settlement Rules: You can enable the system to automatically create settlement rules based on the information in the settlement profile (not part of this course).

The settlement profile plays a crucial role in project management in SAP S/4HANA, influencing not just project cost controlling but also financial accounting, management accounting or asset management. Different types of projects may require different settlement profiles; therefore, it is possible to create and manage as many different profiles as needed.

The settlement rule in the project will then apply all the characteristics defined in the settlement profile.

Analyze a Settlement Profile

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