What is settlement element in SAP CO - Controlling?

SAP Term: settlement element

• Component: CO

• Component Name: Controlling

• Description: Facilitates the settlement of projects. The costs of WBS elements below each settlement element are summarized on the settlement element. You only need to assign a settlement rule to the settlement elements instead of to each WBS element in the project hierarchy.

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• Key Concepts: 
  Settlement element is a component of the SAP Controlling (CO) module. It is used to settle costs and revenues between different cost centers or profit centers. It is used to transfer costs from one cost center to another, or to transfer revenues from one profit center to another. The settlement element can be used for both internal and external settlements. 
  
  How to use it: 
  The settlement element is used to transfer costs and revenues between different cost centers or profit centers. The settlement element can be used for both internal and external settlements. To use the settlement element, the user must first define the settlement rules in the system. Once the rules are defined, the user can then enter the settlement data into the system. The system will then calculate the settlement amounts and post them to the appropriate accounts. 
  
  Tips & Tricks: 
  When using the settlement element, it is important to ensure that all of the data entered into the system is accurate. This will ensure that the correct amounts are posted to the appropriate accounts. Additionally, it is important to ensure that all of the settlement rules are properly defined in order for the system to accurately calculate and post the settlement amounts. 
  
  Related Information: 
  The settlement element is closely related to other components of SAP Controlling such as cost center accounting, profitability analysis, and product costing. Additionally, it is important to understand how these components interact with each other in order to properly use the settlement element.