The effect of settlement of any cost object (it may be production order, maintenance order or project) falls on both FICO modules based on the cost object’ status and configuration (especially related to RA & others).
Whereas:
In layman terms settlement means moving values (costs/revenue) from one cost object to the other. Ex: here moving costs from project to COPA (PSG). Which in turn reduces the values from sender and increases the values to the receiver
If this is the case there won’t be any effect on FI at the time of settlement for cost objects like projects and maintenance order.
FI entry: No
CO Entry will be:
Dr/Cr maintenance order/project (Dr- in case of revenues and Cr-in case of costs)
Cr/Dr PSG-COPA (Dr- in case of costs and Cr- in case of revenues)
Where as in case of production orders, if you are settling on Material (majorly we do this), we will have affect both on FI & CO at the time of settlement.
FI entry:
Dr/Cr production variance
Cr/Dr COGM
CO entry:
Dr/Cr production order (if you make production variance GL as cost element)
Cr/Dr production order
If you activate variance value flow to COPA and maintained PA transfer structure, then values flow to PSG-COPA also.
As I said if we have RA calculation, then settlement considers the status of Cost object, whether it is released, partial delivered, delivered, TECO etc.
In this case even though the order status is TECO/Delivered, we see an FI entry for the reversal of WIP/reserves/COS calculations along with above entries.
NOTE: there is no concept of RA calculation for maintenance orders
Regards..
Jose
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