What is settlement rule in SAP CO - Controlling?

SAP Term: settlement rule

• Component: CO

• Component Name: Controlling

• Description: Rule that determines which portions of a sender's costs are allocated to which receivers. A settlement rule contains distribution rules, one or more of which are assigned to each sender. In most cases, there will be one distribution rule for each receiver.

Smart SAP Assistant

• Key Concepts: 
  Settlement rule is a feature of SAP Controlling (CO) that allows users to define the rules for allocating costs and revenues to cost objects. It is used to determine how costs and revenues are distributed among different cost objects, such as cost centers, orders, and projects. The settlement rule also defines the criteria for determining the cost object to which the costs and revenues are allocated. 
  
  How to use it: 
  To use the settlement rule, users must first define the criteria for allocating costs and revenues. This includes specifying the cost elements, cost objects, and other parameters that will be used in the settlement process. Once these criteria have been defined, users can then create a settlement rule that will be used to allocate costs and revenues according to the specified criteria. 
  
  Tips & Tricks: 
  When creating a settlement rule, it is important to ensure that all of the criteria specified in the rule are valid and accurate. This will ensure that costs and revenues are allocated correctly and efficiently. Additionally, it is important to review the settlement rule periodically to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  For more information on settlement rules in SAP Controlling (CO), please refer to SAP Help documentation or contact your local SAP support team.