What is 'settlement document' in SAP CO - Controlling?

settlement document - Overview

• Component: CO

• Component Name: Controlling

• Description: The document type required for settlements and for the reversal of settlements.

settlement document - Details

• 
  Key Concepts: 
  A settlement document is a document used in SAP Controlling (CO) to transfer costs from one cost center to another. It is used to settle the costs of a cost center to another cost center or to an order. The settlement document is created in the Controlling module and is used to transfer costs from one cost center to another. 
  
  How to use it: 
  To create a settlement document, go to the Controlling module and select the “Create Settlement Document” option. Enter the source cost center and the target cost center or order. Enter the amount of costs to be transferred and select the type of settlement document. Finally, save the document. 
  
  Tips & Tricks: 
  When creating a settlement document, make sure that you enter the correct source and target cost centers or orders. Also, make sure that you enter the correct amount of costs to be transferred. 
  
  Related Information: 
  Settlement documents can also be used to transfer costs from an order to a cost center or from a cost center to an order. Additionally, settlement documents can be used to transfer costs between different company codes.