All the costs or revenues which are collected in the PRODUCTION order or Sales order for example have to be settled to a receiver at the end of the period. This receiver could be a Gl account, a cost center, PROFITABILITY ANALYSIS or asset. Also read the question “What is a cost object “ in the section Controlling.

In order to settle the costs of the production order or sales order a settlement profile is needed. In a settlement profile you define a range of CONTROL parameters for settlement. You must define the settlement profile before you can enter a settlement RULE for a sender.

The Settlement Profile is maintained in the Order Type and defaults during creating of order.

Settlement profile includes:-

1. the retention period for the settlement documents.
2. Valid receivers GL account, cost center, order, WBS element, fixed asset, material, profitability segment, sales order, cost objects, order items, business process
3. Document type is also attached here
4. Allocation structure and PA transfer structure is also attached to the settlement profile e.g. A1

All the costs or revenues which are collected in the Production order or Sales order for example have to be settled to a receiver at the end of the period. This receiver could be a Gl account, a cost center, profitability analysis or asset. Also read the question “What is a cost object “ in the section Controlling.

In order to settle the costs of the production order or sales order a settlement profile is needed. In a settlement profile you define a range of control parameters for settlement. You must define the settlement profile before you can enter a settlement rule for a sender.

The Settlement Profile is maintained in the Order Type and defaults during creating of order.

Settlement profile includes:-