What initiates the default settlement rule during project settlement?

The default settlement rule during project settlement is initiated by the first-time settlement transaction run. This process is significant because it establishes the foundational parameters for how costs and revenues associated with a project are allocated and processed. When the initial settlement transaction is executed for a project, it triggers the settlement rules that dictate how costs are distributed between the project and its corresponding cost objects.

This initial settlement run is crucial as it sets the stage for all future transactions concerning that project. Once the default settlement rule is established, it remains in effect for subsequent settlements unless altered by the project manager or through other adjustments. The significance of this initiation mechanism lies in its capacity to ensure accurate and timely financial reporting and project cost management within the GFEBS framework.