What is 'settlement cost element' in SAP CO - Controlling?

settlement cost element - Overview

• Component: CO

• Component Name: Controlling

• Description: A cost element with which costs are allocated from one object to another.

settlement cost element - Details

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  Key Concepts: 
  Settlement cost element is a component of SAP Controlling (CO) that allows for the transfer of costs from one cost object to another. It is used to settle costs between different cost objects, such as orders, projects, and cost centers. The settlement cost element is used to ensure that the costs are allocated correctly and accurately. 
  
  How to use it: 
  The settlement cost element is used to transfer costs from one cost object to another. This can be done manually or automatically. To manually settle costs, the user must enter the settlement cost element in the settlement field of the source cost object. The system will then transfer the costs from the source cost object to the target cost object. To automatically settle costs, the user must set up a settlement rule in the system. This rule will define which cost objects should be settled and how they should be settled. 
  
  Tips & Tricks: 
  When setting up a settlement rule, it is important to ensure that all of the necessary information is included in the rule. This includes the source and target cost objects, as well as any other relevant information such as percentage of costs to be transferred or specific time frames for when the settlement should take place. Additionally, it is important to regularly review and update any existing settlement rules