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Simplification Item: Rebate Management Replaced by Condition Contract Settlement

With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item:

Sales & Distribution: Rebate Management Replaced by Condition Contract Settlement


  • There are redundant object models in the ERP system. Here, the rebate agreements are used. The (mandatory) target approach in SAP S/4HANA is the condition contract settlement approach followed by Settlement Management.
  • Condition contract settlement is capable of centrally managing master and settlement-related data for all kinds of subsequent settlement-related business processes. In the context of current development, the condition contract settlement application is the single point of entry to create, edit, and settle the conditions according to the contractual terms and conditions.

Business Impact

  • SAP Business Suite customers can move from various releases to SAP S/4 HANA, on-premise edition and still process the existing rebate agreements. It is not possible to create or extend existing rebate agreements.
  • The user interface for SAP S/4HANA, on-premise edition 1511 is transaction WCOCO. The specific transaction codes to create SD Rebate Agreements, which users may be familiar with from SAP Business Suite, are not available in SAP S/4HANA.
  • Condition contract settlement offers additional functions and features that allow you to modernize the implementation of your existing business processes and define additional business process variants.

Recommended Action

  • Condition contract settlement is also available in the SAP Business Suite. Therefore we recommend that you use condition contract settlement if you are planning to create new rebate agreements before you upgrade to SAP S/4 HANA.
  • Customize the conditions contract settlement application to implement your rebate processes based on standard content.

For more details see the PPT attached to the following SAP Note:

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      Author's profile photo Devraj Bardhan
      Devraj Bardhan

      Frank, I find your series of Top Simplification list very useful. Please note that note 2267377 is not yet released

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hi Devraj,

      informed the colleagues accordingly - SAP Note 2267377 is now released.

      Kind Regards,


      Author's profile photo Former Member
      Former Member

      Hi Frank,

      Thanks for sharing your inputs.
      As per the notes - 2226380

      "In general, the functionality SD Rebate Processing is not supported in SAP S/4HANA. The successor of SD Rebate Processing is Settlement Management.
      However, there is one exception. CRM TPM customers can still use SD Rebate Processing for their business process. For those customers, this note does not apply. "

      In this case, When SAP CRM TPM is used how will S/4 reacts ?
      Can we use the SD Rebate processing and continue the process or should we still use "condition contract settlement" kindly share some lights..


      Author's profile photo Delphine PFLEGER
      Delphine PFLEGER

      Hi Franck,

      Thansk for the help. Would you have complementary information on the contract settlement for Material Management?

      I couldn't find any Best Practices for the procure to pay flow in the new settlement management.



      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Hello Dephine,

      sorry - but I do not have additional information available. Possibly somebody else in the community.

      Kind Reagrds


      Author's profile photo Nguyen Cong Tan
      Nguyen Cong Tan

      Dear Experts,

      in create settlement document by tcode WB2R_SC - Customer Contract Settlement .

      A Credit Memo has been created but the settlement qty = 0.


      Please help me check this issue