Speed Up Your Closing by Automating the Generation of Settlement Rules

  • by Palani Swaminathan
  • July 5, 2012
Learn how to automate the process of generating settlement rules for expense projects. Using settlement strategy and validations in work breakdown structure (WBS) elements for expense projects, you can make your month-end processing more efficient.
Key Concept
A settlement rule defines the settlement receiver and the percentage the receiver is going to get during the settlement run process. The settlement run settles the actual accumulated costs in the project or work breakdown structure (WBS) element to a settlement receiver defined in the settlement rule.

Large companies using Project System (PS) typically create multiple expense projects to track day-to-day expenses. These expense projects settle to various cost objects during month end. Sometimes accountants create a wrong settlement rule or do not create a settlement rule, and the result is a delay in month-end processing. I show you step-by-step instructions for automating settlement rule generation for expense projects to expedite your month-end closing.

Business Scenario

Before going further into configuration and a working example, I explain a few scenarios in which a settlement strategy for work breakdown structure (WBS) is useful. You can apply the solution I explain in my working example to these scenarios. I defined them to help you understand the circumstances in which you can best use this solution.

In the first scenario, in large companies two different sets of people carry out activities related to creating a project and settling one. A master data team, with input from business managers, usually creates the project, whereas accountants carry out the generation of a settlement rule and the processing of the actual settlement itself — either centrally or locally.

Palani Swaminathan

Palanichamy Swaminathan has 12 years of experience in banking, finance, and consulting. He has more than seven years’ experience in SAP systems with expertise in SAP FI, CO, PS, and JVA modules. He currently works with Accenture LLP and has been involved in multiple global SAP implementations, rollouts, upgrades, and support projects.

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