SAP PM Order Settlement Checklist (Free)

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0 of 34 items complete

9 critical items still open - these are the highest-risk gaps.

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Before technical completion

All planned operations are confirmed or deliberately cancelledCRITICALFinal confirmation flag set on each completed operationActual work hours reviewed against the planned work for outliersUnused component reservations deleted or issuedExternal services have entered service sheets or goods receiptsCRITICALLinked notification has breakdown and malfunction dates filled in

Settlement rule and receivers

Settlement rule exists on the orderCRITICALReceiver is valid for the order type settlement profileCRITICALReceiver cost center or asset is open for posting in the periodCapital work is split from expense work according to policyDistribution percentages total 100 percentSettlement type matches the receiver (full or periodic)

Costs and postings

All goods issues for the order are postedCRITICALPurchase orders and invoices for the order are matched or accruedInternal activity allocation has run for the periodOverhead is calculated if your costing sheet requires itNo unexpected cost on the order for wrong account assignmentCosts reviewed against the estimate and variances explained

Technical completion

Cause, damage and activity codes completed on the notificationOrder text states what was found and what was doneEquipment or functional location counter readings updated where neededOrder set to TECO by the planner or supervisorCRITICALLinked notification completed with the required end date

Settlement run

Test run executed in KO88 or KO8G before the update runCRITICALError log reviewed and each error assigned an ownerUpdate run executed within the open posting periodCRITICALOrders with errors corrected and re-runSettlement document numbers retained for auditRun date and user recorded for the close file

After settlement

Order balance is zero after settlementCRITICALReceiver cost center or asset shows the expected postingBusiness completion or close status set when policy requires itOpen and unsettled order report cleared for the periodDeletion flag and archiving follow the retention policy

Mark each item as done. Critical items should be complete before the settlement run. Keep the exported checklist with the period close file.

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How to use the checklist

Work through the groups in order. Tick items as you complete them, and use the critical flag to focus on what will block settlement. The checklist is useful per order for large jobs such as shutdowns, and per period for the collective run across all orders. Export the completed list to PDF or Excel and keep it with your close documentation. Planners can use the first two groups, while controllers and cost accountants will focus on the last three.

How settlement works in SAP PM

Settlement moves the actual costs collected on an order to one or more receivers, such as a cost center, an asset under construction or a WBS element. It depends on three things: a settlement rule on the order, a settlement profile on the order type that decides which receivers are allowed, and an allocation structure that maps cost elements to settlement cost elements. Orders are settled one at a time in KO88 or in bulk in KO8G. Always run a test run first, because the log shows rule and receiver errors without posting anything.

Typical errors and their causes

The most common settlement errors are a missing settlement rule, a receiver that the profile does not allow, a closed posting period, and cost elements that have no settlement cost element in the allocation structure. Another frequent cause is a status that blocks the business transaction, such as an order that was set to closed too early. Before blaming the run, check the order status, the rule and the period. If costs were posted after a settlement, the order has a balance again and must be settled once more.

No settlement rule: add the rule in the order or default it from the master record
Invalid receiver: check the settlement profile for the order type
Period closed: ask finance to open it or settle in the next period
Unassigned cost element: fix the allocation structure with finance

Common mistakes

Do not set orders to closed before final invoices have arrived, because late postings will fail. Do not leave the settlement rule to be filled in at period end, as this is when errors multiply. Do not treat capital and expense work the same way. Agree policy with finance about capitalization thresholds, and make planners aware at order creation. Finally, review orders that stay open for months: they often point to missing confirmations or abandoned work.

Frequently Asked Questions

What is the difference between KO88 and KO8G?

KO88 settles one order and is useful for checking a single case. KO8G is the collective transaction that settles many orders in one run, normally at period end, and produces a log with each success and error.

Why does settlement fail with no settlement rule?

SAP needs to know where to send the cost. Add a settlement rule to the order with a valid receiver, or configure defaults from the master record or order type so the rule is created automatically. Then run the settlement again.

Should I set TECO before or after settlement?

Most companies set TECO before the final settlement, once work and goods movements are complete. Costs can still be corrected afterwards in many configurations. Set the closed status only after final settlement and after late invoices have posted.

Can I settle an order more than once?

Yes. If more cost posts to an order after a settlement, it carries a balance again and can be settled again. This is normal for orders with late invoices, but it is a sign you should review your closing sequence.

If you want a live list of unsettled orders, open balances and orders blocked by missing rules, Netray can build a read-only report on your SAP data, with the query visible.

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