What is balancing object in SAP PS - Project System?

SAP Term: balancing object

• Component: PS

• Component Name: Project System

• Description: The balancing object is a CO object in which costs and payments are summarized, interest calculated, and the calculated interest is updated. Summarization can be by account assignment object or in a billing element.

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• Key Concepts: 
  A balancing object is a tool used in the Project System (PS) component of SAP to ensure that the costs and revenues of a project are balanced. It is used to track the financial performance of a project and to ensure that the project is meeting its financial goals. The balancing object is used to compare the planned costs and revenues of a project with the actual costs and revenues. 
  
  How to use it: 
  The balancing object is used to track the financial performance of a project. It can be used to compare the planned costs and revenues of a project with the actual costs and revenues. This comparison can be used to identify any discrepancies between the planned and actual costs and revenues, which can then be addressed. The balancing object can also be used to monitor the progress of a project and ensure that it is meeting its financial goals. 
  
  Tips & Tricks: 
  When using the balancing object, it is important to ensure that all costs and revenues are accurately tracked. This will ensure that the comparison between planned and actual costs and revenues is accurate. Additionally, it is important to regularly review the data in order to identify any discrepancies or issues that may arise. 
  
  Related Information: 
  The balancing object is part of the Project System (PS) component of SAP. Other components of SAP include Materials Management (MM), Sales & Distribution (SD), Human Resources (HR), Financial Accounting (FI), Controlling (CO), Plant Maintenance (PM), Quality Management (QM), Warehouse Management (WM), Production Planning (PP) and Business Intelligence (BI).