Production Order Settlement Steps

In common practice settlement word is used to indicate status of process which is either ended or about to end.

In our case the meaning of settlement is same but here it is linked with the product costing part.

Here system settles balance between all Debit postings (material issue, activity cost) and all Credit Posting (Goods Receipts of order header material).

Settlement Process has two important element first cost sender and another is cost receiver, in each case cost sender will be fix but we have option to change cost receiver by using settlement rule, here we can define Material account, sales order.

For projects it can be cost center, Asset under construction (AUC) or Asset directly.

Procedural Steps

pp order settlement

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.

On successful test run, remove tick and re run above transaction. Display Sender/Receiver information by clicking on the Detailed Lists button, the “Actual Settlement: Order Detail list” is displayed. 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. 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.

settlement sender and receiver 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 follow-on menu path: Environment>Accounting document (or any other relevant document).

This is only Controlling Document; we can see only Controlling and Profit Center Documents.

settlement document

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