Settlement Rule For a WBS Element
What is meant by WBS element and in what scenario, PM orders settlement rule
created with category as WBS?
Budget: Amount of resources allocated under a particular head in a financial year.
Budget Control: Having/ creating a control on the resources allocated in a financial year.
Original Budget: The initial budget that you have allocated to a WBS element.
Supplement of Budget: One time/ discrete increment in the original budget.
Return of Budget: Taking out the unutilized portion of the budget.
Transfer of Budget: Transferring the budget among two or more expense heads.
Project Definition: A framework for a business undertaking with a fixed goal to achieve with
given resources. The project definition contains dates and organizational information that are
binding for the entire project. WBS Element: Individual structural element in a work
breakdown structure (WBS) representing the hierarchical organization of an R/3 project.
Describes either a concrete task or a partial one that can be further subdivided.
Proposed Business Process : Assume there are seven expense heads in maintenance
department. There may be addition of expense head in near future. Based on the maintenance
heads, maintenance department will create a project in project system. This project will be
used for statistical purpose only & will not have any financial implication.
Upon creation of a project, WBS elements will be created as per the expense heads. So for
each expense head, there will be one top level WBS element. Again these WBS elements will
be divided in twelve WBS elements. These twelve WBS elements represent twelve calendar
months. Budget will be allocated to each WBS element & the WBS element will be released
from the project.
Maintenance department will create maintenance orders as per their work requirements.
These orders will be settled to cost centre, which is maintained in the settlement rule. Also
WBS element will have to be mentioned in each order so that the budget control can take
place. So as to capture cost from each maintenance order, the WBS element field will be
made ?mandatory field? in maintenance order.
So when a maintenance order is released, system will do a budget check against the WBS
element mentioned. If the budget check status is OK, order is released or else it will stopped
from release. If the order is stopped from release, maintenance department will have to
supplement the budget. Upon supplementing, the order is released again & the maintenance
cost such as, labour, material costs can be booked on the order. Again the order cost is settled
to cost centre & at the same time, budget is consumed from the respective WBS element.
Every year, maintenance department will copy the previous years project so as to save time &
efforts to create project & WBS elements. And the maintenance department will assign the
budget allocated to each WBS element in a financial year. It is also possible to return the
unutilised budget or, transfer of budget from one WBS element to another.
- Create a project CJ20N
- Create WBS element CJ20N
- Assign Budget to WBS elementsKO22
- Display assigned Budget KO23
- Supplement Budget KO24
- Display Supplement budget KO25
- Return Budget KO26
- Display Return budget KO27
- Transfer of budget CJ34
Settlement From WBS to AUC that was created from other WBS
How can make a settlement from a WBS to an AUC that was created from other WBS
?. The system send me a message AA 311 You cannot posted to the AUC ( Investment
Support Measure ). The Help told me that I need flag a WBS like a Capital Investment
Measure, I search in all fields of the structure but I dont found nothing.
Go to the WBS element Control data tab and enter the investment profile field. Then it will
allow you to create an AUC.
What is the correct procedure for settling the WBS element costs to an AuC & then to
as asset?
For settlement to AUC settlement rule is not required. Follow the steps:
1) For WBS element where the asset has to be created, AUC willbe created automatically
when the WBS element is in release status to get this investment profile should be assigned to
WBS element in Control Tab
2) You can see in the syatem status show as AUC to see the AUC number follow the path
EDIT---> WBS element ----> Investment program----> Asset under Construction where
you can see the AUc which is created automatically
3) Once the above two steps are throughfor settlement to AUC goto transaction CJ88 give the
WBS element number select the processing type as partial captalization and execute all the
costs pertaining to that WBS elements will be automatically settled to the AUC which is
created for that WBS element.
