Maintaining Full Settlement of Investment WBS Elements

The welding cell has now been completed and is to be used in the Bike Company. The welding cell consists of more than one fixed asset. Kevin needs to create new fixed assets, such as welding table and welding cell.

The settlement rule must settle 100% in total. This means that 100% of the asset under construction is credited for a full settlement (settlement type FUL).

Full settlement is performed using the same Run Settlement - Actual app as periodic settlement. The difference lies in the processing type.

Two processing types are possible: Partial Capitalization or Full Settlement.

Full settlement takes place when the investment project is completed. With the full settlement, the debits that were transferred to the asset under construction are settled to completed assets.

If debits were transferred incorrectly to the asset under construction, you can make a correction at this point and make a final settlement of these debits to cost centers. However, this is allowed only for debits that were posted during the current fiscal year. Debits from previous fiscal years cannot be settled to cost centers at this point because they were already listed under assets under construction in the balance sheet from the previous year.

Note that you can still post acquisitions to the investment project after the full settlement. There is no change to the status of the investment projects. Therefore, you can have any number of full settlements for the same investment project

We can use the following processing types for full settlement:

• Partial Capitalization

  Before carrying out the full settlement, the system automatically carries out a periodic settlement. This procedure ensures that all of the debits posted to the investment that require capitalization have been settled to an asset under construction.

  The system settles all debits that have been settled to assets under construction. They are settled to the final receiver assets, which have been assigned a full settlement rule.

• Full Settlement

  The system not only settles the costs in the period, it also determines the cumulative balance on the order up to the settlement period. If there is a outstanding balance, the system issues an error message.