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Former Member

Project specific settlement

Dear Experts,

I have one requirement where client wants to procure consumables items eg: diesel, petrol, electrode etc specific to project.They want to book all these cost to a common object eg: internal order, wbs etc. so that they can distribute this cost to the relevant project at the end of the year.

Cann you let me know if this requirement can we met by booking the cost to the internal order and settling the cost to the wbs for the project using settlement profile.

Also if you can let me know what is the item category we have to select for such scenario in PO so that we can capture the cost to the internal order.

One more thing is that client wants to settle the cost at the end of the year and not monthly. SO question is whether yearly settlement is possible using internal order.

Please give some suggestion so that we can map the same for the client.

Thanks and Regards:

Jamshed

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1 Answer

  • Best Answer
    Mar 29, 2016 at 12:07 PM

    Hi Jamshed

    Its possible.. Please read through

    1. You should use AAC = F (Internal Orders) or Q (WBS Element) in the PO to book the costs to Internal Order or WBSE

    2. You should select the Settlement type FUL and not PER in the Order or WBSE so that you are able to settle the entire amount at once at the end of the year

    3. Internal Order or WBS can only "Settle" and not "Distribute"..

    The difference between both - Settlement gives very few options to allocate such as Amount settlement or % Settlement

    Distribute (Assessment or Distribution Cycle) allow you to allocate based on SKF, Activity types, Amount, % etc

    So, it depends on what you want

    Ajay M

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