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PM order & Service order - Settlement logic


How should we arrive at what should be the settlement rule for PM order and service order.


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1 Answer

  • Best Answer
    Dec 23, 2014 at 10:59 AM


    Decision on Settlement rule for PM order and service order depends on what proportion of the costs on a sender should be settled to which receiver and when you would like do the settlement.Settlment rules have Distribution rule which will decide the

    1)Which settlement receiver you settle to

    2)Which part of the costs you settle

    3)When you make the settlement

    From STD SAP Help describes the why settlemnet required as below.

    The costs that arise from processing an order (for example, costs for material, personnel, or external services) have the individual technical objects (equipment, functional locations) as a reference object.The costs are initially collected on the order. They are then transferred to the settlement receiver specified in the settlement rule. The receiver of the costs is independent of the reference object.

    So its up to business how they would like do the settlement by using above settlemnt Profile.

    You can control you settlement rule creation Settlement rule created When the order is released or Only when the order is completed  by using below configuration

    Plant Maintenance --> Maintenance and Service Processing -->Maintenance and Service Orders --> Functions and Settings for Order Types --> Define Settlement Rule, Time and Distribution Rule.



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    • Hi Abraham,

      It depends on your requirement, if your service order is generating revenue, then the difference between revenue and cost is settled. You can also refer below thread which was discussed earlier