gain experience with sap s/4hana logistics unit 2: sales

Gain Experience with SAP S/4HANA – Logistics

Unit 2: Sales Rebates Through Settlement

Management

2PUBLIC© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Sales rebates through Settlement Management

Question 1

“What is Settlement

Management and why do

you need to switch from

classic SD rebates?”



New holistic solution for rebate management

SD rebate processing is no longer supported in SAP S/4HANA. The successor to SD rebate processing

is condition contract management in Settlement Management:

Settlement Calendar

Business Volume

Selection Criteria |

Condition Records

Detail Statement

Settlement Information

Document Collection

Output | FI/CO

Messaging

SETTLEMENT

DOCUMENTS

CONDITION

CONTRACT

CUSTOMIZATION

DATA SOURCE

Split Criteria on Header and Item | Condition and Scale Base

Business Volume Table | Transfer Rules for Document Creation

Sales Orders | Purchase Orders | Deliveries | Invoices | Goods Movements

Settlement Management Documents | External Systems | POS Data

Business Volume Determination | Calculation via Pricing

Settlement Document Creation

SETTLEMENT PROGRAM



Why do we need to switch from “classic” SD rebates (1/2)?

With a traditional ERP system:

▪ Rebate indexes are very large

▪ Need to rebuild index in case of

changes

▪ Inflexible business volume

determination

▪ Rebate data is locked

throughout the organization

when rebuilding

▪ Large data volumes affect

system performance

Traditional ERP system

VBRPVBRK VBPA

Billing documents Customizing

TVKOTVFK TVTA T683S

Customer

master

KNVV

Pricing

prepare

Write

Rebate index

VBOX

(up to 2TB)

Read

Re-pricing

(pricing type “I”)

Determination

of billing

documents

Retroactive rebate

determination

(SDBONT06)

Billing



Why do we need to switch from “classic” SD rebates (2/2)?

With SAP S/4HANA:

▪ Significantly enhanced

functionality (Settlement

Management)

▪ Common functionality for

SAP S/4HANA Sales and

Procurement

▪ More flexibility: no need to rebuild

the rebate index in case of

changes or retroactive update

▪ Significantly reduced data footprint

and memory

▪ No performance reduction in sales

processes

▪ Traditional VBO1 rebates are no

longer available* in SAP S/4HANA

Reporting on

demandCondition contract

Business volume base

Conditions

Settlement program

Business volume determination

(condition/scale basis)

Settlement document

Calculation (pricing)

Business volume

database/views**

▪ Sales order

▪ Purchase order

▪ Point-of-sale data

▪ Goods movements

▪ Deliveries

▪ Invoices (SD and MM)

▪ Agency documents

▪ External systems

Data sources

(Customizing)

Financial accounting/controlling

Messaging

Others (for example, output)

Settlement doc,

detail statement

Settlement document

**Data source – for example, database views

(VBRK, VBRP, EKKO, EKPO, or similar) or

business warehouse.

*SAP TPM landscapes are allowed to use

classic rebates with some restrictions

With SAP S/4HANA



Question 2

“How do you create a

condition contract for sales

rebates?”



Question 2 – How do we create a condition contract?

▪ Use the “Monitor Condition Contracts”

SAP Fiori app or transaction WCOCO to

create, change, or display a condition

contract.

▪ Mandatory data for a condition contract:

− Contract type

− Validity period

− Sales area

− Business volume criteria

(e.g. customers, materials etc.)

− Settlement calendar with settlement dates

− Rebate conditions

▪ Release condition contract in the app



Question 3

“Which condition contract types

and settlement date types are

available?”



Question 3 – contract and settlement date types

▪ The condition contract type specifies the rebate scenario of a rebate agreement

− Single customer sales rebate – contract for single customer

− Multiple customer sales rebate – multiple customers in business volume

− Two-step rebates – ability to aggregate figures from several condition contracts

− Goods-related rebates – taxes are calculated based on material items in a

reference document

▪ The settlement date type in the settlement calendar of the condition contract

allows to specify intermediate steps in the settlement process:

− Partial settlement – provisional settlement of a specific time period in the entire

duration of a condition contract (“partial payment”)

− Final settlement – final permanent settlement of a specific time period in the

entire duration of a condition contract. (“to draw the line”)

− Delta settlement – subsequent corrections or late postings to be considered for

referenced final settlement

− Delta accruals settlement – accruals of rebate amounts on special G/L

accounts. AR figures are not affected



Question 4

“How do you run settlement

for condition contracts?”



Question 4 – How do we run condition contract settlement?

▪ Condition contract settlement can be

run manually or scheduled in the

background

▪ Optional: check calculated business

volume of the condition contract(s)

▪ SAP Fiori “Settle Condition Contracts”

tile or GUI transaction WB2R_SC

− Specify document criteria on the

selection screen

− Specify Run control options

(logs, update type)

− Execute settlement program

− Check the logs

▪ Check generated settlement

documents and G/L postings



Question 5

“Which reporting capabilities

are available in the standard

system for condition

contracts?”



Question 5 – basic reporting capabilities for condition contracts

▪ Monitor customer condition contracts

▪ Display business volume

▪ Monitor settlement documents

▪ Flexible reporting on condition contracts



System demo

System demoCondition contract creation, settlement, and reporting



Key takeaways

▪ “Classic” SD rebate processing is no longer

supported in SAP S/4HANA (exception: scenarios

involving SAP Trade Promotion Management)

▪ The successor to SD rebate processing is condition

contract management in Settlement Management

▪ Condition contract management provides a central

standardized solution for the administration of supplier

and customer rebates

▪ The concept of a condition contract can already be

implemented in ERP by activating the relevant business

functions

▪ The functionality is very flexible and can be used in

innovative ways. However, it requires investing some

time to familiarize yourself with the solution.

▪ Purchasing rebates management is similar to sales

rebates. Only contract types and source documents differ.

Thank you.

Contact information:

[email protected]

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