SAP ERP Financials and FICO Handbook

82 CHAPTER 1 INTERVIEW QUESTIONS AND ANSWERS
188. What is a settlement profile?
In a settlement profile you will specify a range of control parameters that define
how the order will be settling to other cost objects. You must define the settlement
profile before you can enter a settlement rule for a sender.
In a settlement profile, you define the following parameters:
■ Permitted settlement receivers (such as cost center or asset)
■ Default values for the settlement structure and the PA transfer structure
■ Allocation bases for defining the settlement shares (using percentages and/or
equivalence numbers)
■ Maximum number of distribution rules
■ Retention period of the settlement documents
■ Document type for settlements relevant to accounting, or, more specifically, to
the balance sheet
■ Definitions for the settlement of actual costs or the cost of sales
189. What is a planning profile?
A planning profile contains parameters and default values for overall planning.
You can also assign an order type to the planning profile at a later date. You need
planning profiles for the following planning methods:
■ Overall planning for IOs
■ Hierarchy cost planning for projects
■ Preliminary costing for production orders that do not have a quantity structure
(CO production orders)
■ Cost planning for investment programs or investment measures, and for appropriation
requests
■ Financial budgeting
190 What is a budget profile?
Budgeting within SAP solutions provides the user with enhanced project
management capabilities not provided by IO planning. Where an IO planning
is an estimate of expenditures made at the beginning of the fiscal year,