Settlement and Cost Element Reports - Product Lifecycle Management... https://wiki.scn.sap.com/wiki/display/PLM/Settlement+and+Cost+El...

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Settlement and Cost Element Reports

Created by Sreenivas Kadiam, last modified by Gerry Hodgins on Oct 17, 2016

Purpose
Settlement and Cost Element Reports-Project System

Overview
The cost elements for the periodic settlement to CO receivers (for example, cost centres) are specified in the allocation structure of the given settlement profile. When making this specification, you can
choose if you want:

To settle by cost element

To specify a settlement cost element

In the allocation structure, you make specifications for the settlement of debits on the order or WBS element to the given receiver type. You can specify per settlement assignment and per receiver type
whether you want to settle by cost elements, or whether you want to use a settlement cost element, and if so, which one. The settlement assignment is a grouping of cost elements or cost element groups
that should be treated in the same way during the settlement.
Settlement by Cost Element:
During settlement by cost element, the system settles each debit again with the source cost element. The cost element of a debit, therefore, does not change during the settlement transaction. As a result,
the cost element is still available on the settlement receiver.
When you settle to the Cost Centre, the system transfers the applicable debits from the WBS element to the cost centre as per the settlement rule. The result is a transfer from primary costs (expense) to
Cost Centre. For settlement by cost element, the offsetting account to the Cost Centre is the primary cost element of the original debit.
Settlement with Settlement Cost Element:
There are some conditions under which it is not possible to settle by cost element to a Cost Centre. One of these is when the original debit is a secondary cost, for example, for internal activity allocation.
The reason is that there is no corresponding expense account for secondary costs. Therefore, you have to settle secondary cost elements using a settlement cost element.
The following graphic shows the specifications for an allocation structure, along with the assignment to the WBS by means of settlement profile and the project profile.

Requirement:
If Business Process (Financial Management) requires/decides on this ('By Cost Element') settlement option, there would a larger set of business Users who would be still interested to see cost element
with debits and credits separately. This is not an issue with 'settlement by cost element' as the settlement credits on the object are shown against settlement cost element.
Project Cost Element report - Settlement by Cost Element:
In below cost element WBS report output the balances are always shown as Zero as settlement is done using 'Settlement by Cost Element'
Example Report: S_ALR_87013542 - Actual/Commitment/Total/Plan in CO Area Currency
Issue:
As the offsetting account to the Cost Centre is the primary cost element of the original debit, this report layout would not directly show the details of settlement transactions. You need to call up the line
item report to understand actual cost flow (debits and credits) as shown below:
Actual Line item report (Cost Element 461260) showing debits and credits (D/C indicator)
Solution:
Using report writer, functional consultants themselves can create a cost element copying the standard report and make few changes. Dr/Cr Indicator plays an important role in creating these reports.
D/C Indicator:

The debit/credit indicator is used to distinguish between debit and credit postings.
Debit postings are indicated by "D". These postings arise from
- debit postings in Financial Accounting (FI)
- reversal of credit postings in FI
- postings to receivers in Controlling (CO)
- reversals of postings to receivers in CO
Credit postings are indicated by "C". These postings arise from
- credit postings in FI
- reversals of debit postings in FI
- postings from senders in CO
- reversals of postings from senders in CO
Credit postings from settlement are indicated by "O".
Credit postings from shipments to warehouse are indicated by "S".
Create new Cost Element Report:
Use transaction Code GRR2 and copy the standard report (Ex., 6PP1-001) to modify the report columns suitably in report ZPP1-001.

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Basic concepts of Report Writer are explained on SAP help portal and link is below:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/ee/41f69f46ee11d189470000e829fbbd/content.htm
Modify the columns to show debit postings using D/C Indicator (include/move the Dr/CR Indicator from Available characteristics)
1. Costs/Revenues (Debit)

2. Deliveries to Stock (Credit)

3. Settlement (Credit)

4. Balances (Formula)

New Project Cost Element report - Settlement by Cost Element:

In below cost element WBS report output the balances are shown as Zero but with summating original debits and settlement credits separately. Settlement is still 'By Cost Element'
New Report: Actual/Commitment/Total/Plan in CO Area Currency

ps_topic

3 Comments
Guest
Dear Expert.......Srinivas.

Im so happy by seeing your blogs.

Thank u very much....

Regards

Chandrasai(guru)

Guest
Dear Guru,

It's really helpful. My client is very happy to use this report to check the settlement balance. However, can we have detail line item when we use this Z report...especially to check the value in
commitments / or in the actual...

Plz advice.

Cheers,

Nies

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Guest
Dear Srinivas.

I trying to follow the step which you wrote on your blog, but I am facing a short dump error at time when I hit the Copy button while executing the GRR2. The Message is as follow:

Error analysis
Short text of error message:
Internal error: Program , include , form .

Long text of error message:

Diagnosis
An unexpected error has occurred.
Procedure
If you can reproduce the error, contact the SAP Hotline quoting the
error number.

Technical information about the message:

Message class....... "GR"
Number.............. 214
Variable 1.......... " "
Variable 2.......... " "
Variable 3.......... " "
Variable 4.......... " "

It would be great if you or somebody else can help in this regard. Thank you very much.

Regards,

Deddy

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