Poject Settlement issue - WBS to WBS

Hi Experts,
I am getting problem while settlement of the customer projects (Fixed Bid and T&M). Can anyone please help me. The details as follows :
Project has the below structure :
Project def
Top level WBS
Network linked to top level WBS
Second level WBS1
Activity1
Activity2..
Second level WBS2
Activity1
Activity2..
Now i have settlement rule on Activities as respective 2nd level WBS
And i have Settlement rule on 2nd level WBSes as Top Level WBS
Top Level WBS is the only Billing Element and it has Settlement Rule to PSG
When i run the settlement, it settles activities to the 2nd Level WBSes, but the costs on the 2nd Level WBSes stays there. The settlement of 2nd level WBSes to Top Level WBS is not happening.
When i searched SAP Customer Messages, i find that the customers faced this problem and referred some SAP note and the problem was resolved. But the SAP Note# is not mentioned.
Please help me. Thanks for going through the lenthy description !
Rajesh

Hi Virendra,
Understand and thats exactly what i am trying to do. The problem is the activities are having settlement rule for WBS and they take the WBS they belong to at the time of settlement which is 2nd level WBSes. Now
1. either i need to change the settlement rule at activities to have 1st level WBS and not 2nd level WBS. Do you know what settings i can use to get this ?
2. or Settle 2nd level WBS to 1st Level. but as you said this doesnt look like needed.
Please help.
Thanks
Rajesh

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