# QM order cost recording and settlement in SAP

> Source: https://netray.co/erp-help/qm-order-cost-recording-and-settlement-in-sap
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: ERP Help

## Short answer

A QM order is a cost collector for inspection effort. Costs such as labour confirmed against it and external services are posted to the order, and at period end the order is settled to a receiver, typically a cost center, using a settlement rule and settlement profile. It is a Controlling process as much as a Quality one.

## Kind

how-to

## System

sap

## Erp

SAP QM / CO

## Module

Quality Management / Controlling

## Query

qm order cost recording in sap

## Alternate Queries

- sap qm order capturing costs
- sap qm order settlement rule
- qm order settlement to cost center

## Applies To

SAP ECC and S/4HANA with QM and CO.

## Steps

### Capture and settle costs

**Items:**

- Configure the QM order type and its settlement profile and allocation structure with your CO team.
- Ensure the inspection lot or notification creates or links the QM order, per your configuration.
- Post costs to the order through time confirmations, goods issues for materials used and external service procurement.
- Maintain the settlement rule, assigning the receiver, for example a cost center, with the percentage.
- Check the order's costs in the order reports before period end.
- Run settlement (KO88 individually or KO8G collectively) and verify the postings on the cost center.

## Sections

### What a QM order does and does not do

**Body:**

A QM order collects costs only; it does not drive the inspection itself. The inspection lot handles the quality process, while the order is linked so that effort and materials spent on inspection can be reported as cost.

### Settlement rule and profile

**Body:**

The settlement profile (maintained by CO, for example in KO04) defines allowed receivers and whether a rule is mandatory. The settlement rule on the order specifies the receiver and share. Without a rule, settlement fails with an error asking for it.

The allocation structure and source structure decide how cost elements map to settlement cost elements on the receiver.

**Code:**

- KO88  Actual settlement: individual processing
KO8G  Actual settlement: collective processing
KO04  Maintain settlement profile

### Troubleshooting

**Body:**

If settlement does nothing, check the order status (it needs to be released and not already settled), that costs exist, and that the period is open. If receivers are rejected, check the settlement profile permitted receivers.

## Pitfalls

- No default settlement rule, so each order needs manual maintenance.
- Settling into a closed period.
- Changing the settlement profile after orders exist.
- Not training quality staff to confirm time to the order.
- Expecting the QM order to control inspection scope.

## Ai Angle

A grounded assistant can answer which QM orders have unsettled costs or missing settlement rules by reading CO data read-only. Netray runs this privately on-prem alongside SAP.

## Faq

### What is a QM order in SAP?

**Answer:** An order used to collect costs of quality activities such as inspection, which are then settled to a receiver like a cost center.

### How do I settle a QM order to a cost center?

**Answer:** Maintain a settlement rule with the cost center as receiver, then run KO88 or KO8G in an open period.

### Why does settlement fail?

**Answer:** Common causes are a missing or invalid settlement rule, wrong status, no costs to settle or a closed posting period.

### Who configures settlement profiles?

**Answer:** Typically the CO consultant with QM input on the order type.

## Search terms

qm order cost recording sap, sap qm order settlement rule, sap qm order capturing costs, ko88 settlement, ko8g collective settlement, qm order cost center, sap quality cost collection

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