What is settlement rule in SAP SRD-FIN-COR - FIN-Cost and Revenue?

SAP Term: settlement rule

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: A rule that determines how costs and in some cases revenues incurred on a free cost object sender are allocated to one or more other free cost objects receivers. Settlement rules serve as a basis for the free cost object settlement run. They also determine how the adjusting entries accompanying the settlement run are created.

Smart SAP Assistant

• Key Concepts: 
  Settlement rule is a feature of SAP's Financial Cost and Revenue Accounting (FIN-COR) component. It is used to define the rules for how costs and revenues are allocated between different cost objects. The settlement rule defines the criteria for which costs and revenues are allocated, such as by cost center, order, or project. 
  
  How to use it: 
  Settlement rules are created in the SAP system and can be used to allocate costs and revenues to different cost objects. The settlement rule defines the criteria for which costs and revenues are allocated, such as by cost center, order, or project. The settlement rule also defines the percentage of costs and revenues that are allocated to each cost object. 
  
  Tips & Tricks: 
  When creating a settlement rule, it is important to ensure that the criteria for allocating costs and revenues is accurate and up-to-date. It is also important to ensure that the percentage of costs and revenues allocated to each cost object is correct. 
  
  Related Information: 
  For more information on settlement rules in SAP's FIN-COR component, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SRD_FIN_COR/latest/en-US.