Standing and settlement order

[vivek_varun2]

In master data of technical object  we have fields standing order and settlement order in organization tab. what is the use of these fields, I means I got the point that we can do settlement of order to other order so that order number we can maintain in settlement order field and standing order is something like pending orders for which settlement is not done and related to the given order, but practically I am unable to understand how this process happen I means how we do settlement to other order, will it pass from one order to other and in end of year can be settled in some other section  or what  and in standing order we can give only 1 order number, so if my concept is rite that relatively pending orders and called standing order then it can be more than 1 also.

please explain me with example

thanks in advance

Vivek Varun

[Former Member · Accepted solution]

Standing Order - There are N no. of tasks will be done at maintenance department. Each activity is not required to have separate order. Those kinds of activity can be grouped under single order. Each equipment can have individual order in which those kinds of activity can be grouped. For the user's reference purpose, that order number can be mentioned in equipment master.

Settlement Order - This is like settling the PM order cost to Settlement order as first stage. At the month end or year end, FI department will distribute the cost to different receivers. Say, one equipment is used by different projects on long time (sharing basis). So all the maintenance costs will be distributed among those projects at the year end by the time usage of equipment can be arrived at.

[vivek_varun2 · Accepted solution]

can you please describe the standing order more clearly...its still not clear to me n for settlement order what is the benefit of settling to other order... in spite of settling directly to cost center of equipment....I am asking this because as you  gave the example of using a equipment to different project for long time and distributing the cost to receiver in month end....that scenario is happening in my client side....they are going to implement PM...and my plan is to settle the order to cost center...

[Former Member · Accepted solution]

If you would have searched in google, you could have understood better.

http://scn.sap.com/thread/1933616

http://scn.sap.com/thread/2124828

http://scn.sap.com/thread/1721509

Standing Order will be used in case of long duration shut down where you have different activity to be done on long term basis. In this case, you can't create order every time you do maintenance. In that case, you can use standing order.

Settlement order will be used when we can't decide the exact receiver immediately after maintenance work. Say, equipment are being shared between 5 projects, even its not fixed day period. Within day, equipment can be shared between 3 to 4 projects. So, each project supervisor will note down the usage hours of that equipment daily. In between, maintenance will be done on maintenance. So immediately, they can't decide the maintenance cost distribution over the projects.

At some period end (either month or year), from each project, they will get the usage hours of the equipments. Finally, from settlement order, maintenance cost will be distributed among the projects either with % settlement or amount settlement. Sometimes, each maintenance order will have very less maintenance cost, so that it is very tough to distribute the cost.

Please search in google to get some examples.