Internal Order :Settlement

[raj_misra]

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Hello All,

Business requires settlement of costs on a real Internal Order to be as follows:

- All Costs on GL Account 10001 to be treated as expenses and posted back to GL 10001

- All other Costs to be charged to AUC

Configuration set-up (Settlement using Allocation Structure)

Assignment > Expenses

> Source - CE 10001

> Settlement CE - CTR / By CE

Assignment > Capital

> Source - All Other CE's (Group)

> Settlement CE - FXA / By CE

This Allocation Str is assigned to Settlement Profile which is Assigned to Order

Transaction Data:Costs posted to Internal Order

- $1,800 posted to GL Account 10001

- $1,200 posted to GL Account 10099

Settlement Rule defined for Internal Order:

- CTR - AB100

- FXA - 1000044

(issue - System forcing to check on %, so have used equivalance number 1:1)

Expectation: (On Settlement)

- DR to Asset (1000044) for $1,200

- DR to Cost Centre AB100 (CE 10001) for 1,800

- CR to the same CE with assignment to Internal Order

However, on running settlement (KO88)

get the following error: Message no. KD506

Define a settlement cost element for receiver type FXA ( Diagnosis: In allocation structure ZT (controlling area 1000), you did not define which cost element should be used when settling costs/revenues of the sender. Nor did you define receiver type FXA)

Assistance in resolving the above would be appreciated. Pl inform:

- Changes / modifications to Configuration (Allocation Structure)

- Changes / modifications to settlement Rule (IO)

- Any other step missing

Thanks & Regards

Raj

[Former Member]

Hi Raj

From the face of it, it seems you have not defined the settlement cost element type 21 and allocated it for FXA.

In CO settlement, the rule is

in case of settlement to CO objects it can take the same CE for clearing - Destination CO only.

In case it is settled to a FI object, Materials, FXA, GL, this is normally better to define a separate CE for settlement posting - as the destination is FI.

In FI the legal reporting is always Gross Reporting and hence this way is accepted.

In CO you have option, you may know the difference between Distribution & Assessment -how it behaves.

Hope this will help u.