What is settlement type in SAP CO - Controlling?

SAP Term: settlement type

• Component: CO

• Component Name: Controlling

• Description: The following settlement types are defined in the SAP system: Periodic settlement PER - Settles costs by period. It only includes the costs of the settlement period. Full settlement FUL - Settles all costs on a sender object that were incurred up to the period of settlement. Capitalization of assets under construction AUC - Settles capital investment measures to assets under construction by period. The SAP system generates this settlement type. Preliminary settlement PRE - Settles debits posted on capital investment measures to receivers before periodic settlement to assets under construction. Line item settlement for assets under construction LIS - Enables line item settlement of assets under construction for which line item management has been defined. The SAP system sets this settlement type not for capital investment measures.

Smart SAP Assistant

• Key Concepts: 
  Settlement type is a feature of SAP Controlling (CO) that allows users to assign a specific settlement rule to a cost element. This rule determines how the costs associated with the cost element are settled to other cost elements or cost centers. The settlement type also determines the period in which the costs are settled. 
  
  How to use it: 
  To use the settlement type feature, users must first create a settlement rule in the CO module. This rule can be assigned to one or more cost elements and will determine how the costs associated with those elements are settled. Once the rule is created, users can assign a settlement type to each cost element. This will determine when and how the costs associated with that element are settled. 
  
  Tips & Tricks: 
  When creating a settlement rule, it is important to consider the period in which the costs should be settled. This will help ensure that all costs are settled in a timely manner and that no costs are left un-settled. Additionally, it is important to consider any restrictions or limitations that may be imposed by the settlement type when assigning it to a cost element. 
  
  Related Information: 
  For more information on settlement types and how they can be used in SAP Controlling, please refer to SAP Help documentation or contact your local SAP support team.