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SAP PM Order Settlement

Dear SAP PM Expert,

Can anybody give me explanation about the SAP PM Order Settlement? I have no clear understand of the concept of this process.

Thank you for your explanation.

Regards,

RH Wibowo

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    author's profile photo Former Member
    Former Member
    Posted on Jul 06, 2009 at 04:22 AM
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  • author's profile photo Former Member
    Former Member
    Posted on Jul 06, 2009 at 04:28 AM

    Hi

    Any PM Order has a standard cycle CRTD,REL,CNF,TECO.

    Now whenever we book cost to an Order either through confirmation or material or service procurement, cost gets accumulated to the Order which acts as a Cost Object.Now in order to allocate the cost to the appropriate settlement receiver finally , the cost of Order needs to be settled.This settlement can be a periodic settlement or Full settlement before closing the PM Order (CLSD).Usually Both the settlement rules are written in the Order so that till the time Order is in REL state, cost keeps settling at the Month end to the receiver.This receiver can be a Cost center(usually high level cost center for the Technical objects) or a WBS (PS module) or another PM Order or any internal order etc.

    Also PM Order cannot be closed unless the cost has been settled.

    Thanks

    Manish

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 04, 2009 at 02:30 PM

    Hi ,

    After Confirmation Completation order has to Settle so that the Actual amount should posted.

    In settlement (Tcode KO88) you will get the sender and receiver it will be a WBS element and a Cost center.

    the amount will be posted against the Settlement rule which you defined in work order.

    Rahul.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 06, 2009 at 04:02 AM

    Hi,

    PM orders are only the Cost collectors. So, the costs collected in the Order has to be settled finally to one of the Cost object. The cost object is decided based on the business requirement. It can be a Cost center or WBSE or Settlement order or G/L.... This you have to jointly discuss with your CO guy and assign the Settlement profiles to the Order type.

    Regards,

    L.Balachandar

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  • Posted on Jul 06, 2009 at 05:31 AM

    Hi RH Wibowo,

    Cost is always divided amongst Cost Centers or WBS or Network or...etc. not with respect to maintenance orders.

    Maintenance order contains the costs which need to settled (transferred) to some other cost center(example).

    It is necessary for accounting of cost & removing order cost. Once the settlement is done maintenance order contains no cost and receiver will be debited by that much amount.

    Sundar

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 06, 2009 at 03:03 PM

    Hi,

    In simple layman terms, Assume Order is a bucket which collects cost whatever incurred while doing job and then to allocate to proper account we need a process called settlement. In settlement we actually allocate cost from order to account or account assignment object say a Cost center. Contact your FI counterpart to understand clearly.

    Regards,

    Rajesh

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 06, 2009 at 05:09 PM

    Dear All,

    All Of your Answer and Explanation very helpful for me.

    The Article what happened if the cost is not settled, makes me more clear about this process.

    Regards.

    RH WiIbowo

    Edited by: RH Wibowo on Jul 7, 2009 1:58 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 18, 2014 at 02:17 PM

    ddd

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2016 at 01:49 PM

    This message was moderated.

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