What is preliminary settlement in SAP IM - Investment Management?

SAP Term: preliminary settlement

• Component: IM

• Component Name: Investment Management

• Description: Settlement type used to settle debits posted on investment measures before the periodic settlement to CO receivers. During preliminary settlement, you can define distribution rules for selected line items, as well as rules that apply to the entire investment measure. Preliminary settlement is always carried out together with periodic settlement. The difference between periodic and preliminary settlement is that you can also settle debits from prior periods during preliminary settlement. It is not possible to have different valuations for individual depreciation areas of the asset under construction during preliminary settlement.

Smart SAP Assistant

• Key Concepts: 
  Preliminary settlement is a process in SAP Investment Management (IM) that allows for the settlement of investments before the actual completion of the investment. This process is used to ensure that all investments are settled in a timely manner and that all necessary documents are in place. 
  
  How to use it: 
  In order to use preliminary settlement, the user must first create an investment order. Once the order is created, the user can then enter the details of the investment, such as the amount, date, and other relevant information. Once this information is entered, the user can then initiate the preliminary settlement process. This process will then check for any discrepancies between the investment order and the actual investment and will settle any discrepancies accordingly. 
  
  Tips & Tricks: 
  When using preliminary settlement, it is important to ensure that all necessary documents are in place before initiating the process. This will help to ensure that all investments are settled in a timely manner and that any discrepancies are resolved quickly. Additionally, it is important to double-check all information entered into the system before initiating the process to ensure accuracy. 
  
  Related Information: 
  For more information on preliminary settlement in SAP Investment Management, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.