During settlement, costs incurred under the primary and secondary cost (including overhead cost via costing sheet) elements by a sender are allocated to one or more receivers. When you settle by cost element, you settle using the appropriate original cost element.
An allocation structure consists of one or several settlement assignments. An assignment shows which costs (origin: Cost element groups from debit cost elements) are to be settled to which receiver type (for example, cost center, order, and so on).
In the settlement profile, you define the range of control parameters for settlement, and the strategy for the automatic generation of settlement rules. Finally, you execute the settlement and the project is settled to the responsible cost center.
In addition to internal projects, this scope item also covers period-end steps for Assets under Construction (AuC). During the construction phase of an asset, all actual postings are assigned to the AuC. Once the asset is complete, the next project settlement run transfers the AuC asset value to the completed asset.
This Scope item is used in the following way: