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As we move from the world of ERP Business suit to the world of S/4 HANA, there are many things which are changing in various modules like FI, SD, PP, Output management etc. and the question always arises how is my business going to be impacted, what is the way forward and am I getting into a totally unknown territory? The first thing which anybody would do is to search for topics on SCN blogs, Google, JAM pages which actually a good starting point. However sometimes ( or most of the times ) one finds it a bit difficult to run a hands-on end to end scenario for the new features which is going to be part of S/4 HANA. I faced similar problems while trying to understand “Condition Contract Management” within Settlements Management which is the replacement for traditional “Rebates Management” and hence I thought it would be nice to share my experiences.



The blog will cover the following topics

  1. Pre-requisites
  2. Introduction
  3. Traditional Rebate Processing
  4. Comparison : Old Vs New
  5. General Process
  6. Step to create condition contract
  7. Sales Flow
  8. Actual Settlement
  9. Credit Memo Display
  10. Business Volume Display
  11. Important Transactions
  12. Useful Tips & Links



Knowledge of SD Rebate Processing ( to be able to understand the advantages of the new solution )



Moving into S/4 1610, New Rebate Agreements are no longer available for creation. Yes, you heard it right! You can’t create a new Rebate Agreement neither can you extend existing ones. Subsequent logical question which any sane person would ask now is “How do I provide rebates to my customers then?”

The answer is via Settlements Management.

Next logical question which would be asked is “Alright, but why Rebates Management has been done away with in S/4?”

The answer lies in the difference between the architectures of S/4HANA and traditional ERP business suite. So, before we move into Settlements Management, let’s touch upon how the traditional Rebate processing works to be able to appreciate the advantage Settlements Management offers.


Traditional Rebate Processing

As a reference from


A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer’s sales volume over a specified time period. You define the details of the rebate in a rebate agreement. In the agreement you specify, for example

  • who receives the rebate payment
  • on what criteria the rebate is based (customer, customer and material, and so on).how long the rebate agreement is valid
  • Within the rebate agreement you create separate condition records for each product the customer buys. These records specify the rebate amount or percentage for each product. You can also specify a pricing scale so that the customer can earn a better rebate by ordering more. Because rebates are always paid retroactively, the system keeps track of all billing documents (invoices, credit and debit memos) that are relevant for rebate processing. The system can, if you wish, automatically post accruals so that the accumulated value of a rebate is recorded for accounting purposes.
  • A rebate agreement is finally settled when you issue a credit memo to the customer for the accumulated rebate total.


Comparison : Old Vs New

Let’s focus on the line in bold in the above section.

Question. How does the system keep track of the invoices which relevant for rebate processing?

Answer. Table VBOX stores all rebate relevant invoices. The customer runs transaction VBOF to apply the rebate conditions in the invoices.


  1. Size: This Rebate index table could contain hundreds of thousands to millions to billions of entries in the system In fact for one of the customers we noticed 1 TB of data being occupied in total DB size of 5 TB. It won’t not take long for our BASIS, DB & ABAP colleagues to understand the repercussions of such a situation.
  2. Locks: If changes in one customers’ conditions occur the table needs to rebuild; while this rebuild is going on, all rebate data is locked throughout the organization

The solution to these issues lie in the Settlements Management

  1. The table VBOX itself has been done away with in S/4 HANA because the rebate conditions are applied instantly due to power of HANA. Hence Rebate Index need not be rebuild when new customers become eligible for rebates and previous business can be retroactively considered.
  2. This significantly reduces data footprint and memory.
  3. Sales document no longer reduce operations impairment in sales processes

Have a look at a side by side architecture of Rebate Management in Traditional ERP Vs Settlements Management in S/4.


General Process

The general process in the CCM differs from the standard Rebate processing in the sense that there are no rebate Agreements at the first step. There are Condition contracts which need to be created and released. The steps for the same are explained in Step 8.


Steps to create Condition Contract

  1. Execute transaction WCOCO ( W ko-ko ) and click on ‘Create’.

2. Select the type of contract you would want to create


  1. Enter the customer and period for which you want to create the condition contract.    
  1. Enter the Sales data on the 2nd tab                        
  2. Enter the business volume selection criteria. This steps defines which invoices are relevant for application of this condition contract.
  3. Enter the settlement Material
  4. Enter the Settlement Calendar. This step defines when you would like to carry out partial/final settlements.
  1. Create Rebate Accrual condition
  2. Change condition Table
  3. Create Rebate condition
  4. Save the Condition Contract
  5. One thing is of utmost import is to release the contract. Hence release the contract in WCOCO
  6. Once done the light will become ‘Green’. Save it.


Sales Flow

I won’t be explaining how to create a Sales document, Delivery, PGI, Invoice etc but what needs to be mentioned is that either these documents can be created before the condition contract creation or after the condition contract creation. In case Sales document is created after the contract creation, REBA accrual condition would be available in the conditions tab.

Don’t worry about the 7 % as opposed to 10 % I created earlier as this is from a different example.

In case the Sales document is already created before the contract creation, the rebate would be provided as part of the settlement process and rebate condition would be visible in Credit memo which will book the correct accrual amount to the respective accounts. So there is no need to adopt the Sales order anymore.


Actual Settlement

Run transaction WB2R_SC and enter relevant values. Please note that Run Type ‘Check Run’ does not post any data. For actual settlement use ‘Live Run’.


Once executed, you will get a message like shown below


Credit Memo

In WCOCO, you can see a credit memo created with relavent values

In the Header conditions, you will find the Rebate condition we had created as part of the condition contract.


Business Volume

Run transaction WB2R_BUSVOL,

As you can see below, business volume 1.5 is updated against the condition contract


Important Transactions

There is a whole list of important transactions for the new Settlement management solution.


Useful tips and Links

  1. Condition contract settlement is also available in the SAP Business Suite. Therefore you use condition contract settlement if you are planning to create new rebate agreements before you upgrade to SAP S/4 HANA.
  2. 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 the existing type rebate agreements.
  3. Help SAP – Condition Contract LINK
  4. Help SAP – Condition Contract Based Settlement LINK
  5. S/4HANA OP1610 simplification list LINK
  6. Settlements management is also available on FIORI apart from SAP GUI.


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  1. Catherine Motrata

    Thanks so much for this Abhinav. Will you be able to share the configuration for this? I am now having an error ” No calculation schema assigned in Customizing. Check Customizing” when executing the settlement in WB2R_SC.

    Hope you can help me on this. Thanks so much.

  2. Twinergy OSS HORSA

    Thanks for explanation.

    Which is the standard configuration of MM pricing procedure and conditions REBA, REBT and BUVO. I’m working in a system where all of them are missing.

    Thanks a lot


  3. Ana Fleisch

    Thank you Abhinav. Finally I have some answers

    I have some others questions, do you know how the extended rebate settlement for indirect sales will work in S4H?

    How can we update Indirect sales to the system and use this conditions contracts?

    The structure S469 can still be used?

    Thanks, BR

  4. Francesca Milardo



    Thanks a lot for your amazing explanation!


    Do have any idea how to manage the lump sum at fixed value with condition contract management?

    I saw that still exist the condition BO06, can be useful?




  5. Aruna kumar Biswal

    Hi Abhinav,

    During creation of invoice you accumulated REBA amount as provision and

    As per my accounting knowledge it should reverse during settlement would tell me how to do it.




  6. Pranav Dave

    @ Andre Drabbe –

    Did you manage to solve the error related to calculation schema, I am also getting the same error “No calculation schema assigned in Customising. Check Customising” This error is appearing while executing T Code WB2R_SC.

    @ Abhinav –

    Can you please throw some light onto this one please.



    Abhijit Aswalikar


    1. Andre Drabbe

      Hi Pranav,

      I have managed to resolved this issue. There is a missing standard config from SAP in the Pricing Procedure Determination for Settlement Document.

      Please refer to:

      2471299 – Error WS220 during condition contract settlement in S/4 HANA

      Hope this helps.


  7. M CRM

    This looks GREAT, I was looking for something similar last year as I was unsure of which document types to use.


    Thanks so much .

  8. Raghu Sharma

    Hi Abhinav,


    Thank you so much for the detailed document. I have one question.. In you demo you used SBBI Contract type. In S/4 Hana 1610 these is a contract type 0S12 – Sales Rebate which I have used for Sales Rebate.  I have done end to end testing and till now this looks fine. Do you see any difference in using SBBI and 0S12. This is just to ensure that I am not doing anything wrong here.


    Also i wanted to know if I want to add a field combination for business volume. For example I only wanted to offer rebates on sales document number. How can i add that in Field Combination for Business Volume.

    Can i assign the existing output types to Credit Memo created for Settlement documents?




    1. Guillaume Villain

      Hi Raghu,

      To add a field combination for business volume, got to SPRO Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Settlement ->
      Define and Configure Field Combinations for Business Volume Selection

      You can create your own field combination.

      If you need other field for assignment, then you can extend table WB2_S_BVB_FIELDCAT
      You can check note 2481934 – Extending the field catalog for bus.vol.sel. field combinations

      Once you have created your field combination, then you should set it to the condition contract settlement settings:
      Settlement Management -> Condition Contract Management -> Condition Contract Settlement -> Specify Settlement Settings for Condition Contract Types

    2. Varun N.R

      Hi Raghu,

      Could you please let me know what tables you used to determine the business volume. As I am using the same document types I am unable to save credit memo and facing short dumps on update because of duplicate entries on tables. Could you please share the configuration you maintained for Settlement document type, process and business volume?



  9. Nguyen Cong Tan

    Dear Experts,


    When i run tcode WB2R_SC – Customer Contract Settlement , there is an error with ”

    Bill-to party 10100007 is not intended for Settlement Management

    Message no. WS538″

    I don’t know how to check this issue

    Please help me check this issue





    1. Nguyen Cong Tan

      Hi Aniket Mohod and Experts,

      Thanks for your support. I fixed this issue as you show

      After fixing this issue, there is issue “A balance of EUR 1,270,748.64- exists in document 0000000001”

      Pleas help me check this issue



  10. Nguyen Cong Tan

    Dear Experts,

    I 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



  11. Aniket Mohod

    Hi Guys,

    Can anyone please tell me what settings need to be done in pricing procedure or in schema as I am facing these issues

    1. Condition type REBA is reflecting twice, in one attempt it is pulling condition value and in other it is pulling PR00 value.
    2. PR00 is not appearing in condition tab of credit memo whereas it is there in invoice.
    3. Net value is still showing ‘0’






  12. Divya Agnihotri


    Dear Experts,

    I am trying create settlement document by tcode WB2R_SC – Customer Contract Settlement .

    condition contract type SBBI

    I am getting below error

    No invoicing party passed on

    Message no. WS206


    Can anyone help on this




  13. Prien Jobalia


    Your Condition Contract Settlement Type has a setting , that says, Contract Partner as Vendor – so it expects an invoicing party. Set it to none and try again.



    Prien Jobalia


  14. Shenali Candappa

    Hi Guys,


    Does anyone have a configuration guide? my rebate condition isn’t getting picked up in my sales order, however it allows me to manually add it. would anyone know what the reason is?




    1. Sergio Luiz Bobadilha

      Hi Shenali.

      HAve you created a new condition to insert on your sales pricing procedure?

      Are u using an access sequence with the Condition Contract number on it? Like the REA1 AccSeq?

  15. Divya Agnihotri

    Thanks Prien


    Dear Experts.


    the business vol. condition type BUVO is not getting determined in my condition contract settlement


    secondly while doing settlement for condition contract ZS01 which is a copy of 0S01 I am getting following error


    Error in calculation schema ZSSD, no net value can be set for item 000001

    Message no. WS099

    Please Help!!



  16. Varun N.R

    Hi all,

    I am using 0S12- Sales Rebate Credit as Settlement Document Type and 0S10 as Settlement Process Type. The process I am intending to run is to rebate Customers. I have maintained KUNNR field for Business Volume Determination and it is getting determined on Condition Contract. 

    I am facing issue while executing WB2R_SC T.code with “LIVE RUN”. Here the system is throwing express dump and technical team is suggesting that the issue is with table “WB2_D_BVDETAIL” which is getting duplicate values. Credit Memo is getting created but not saved as it is update termination. I feel the issue is with the DATABASE VIEW Table used for Business Volume Determination: WCB_VBRK_VBRP_BV. Please let me know if I am using the right Database View tables and suggest any alternative tables can be used.

    Here the Credit memo is created but posting with values have failed because of update termination.


    Please give your suggestions to resolve this..





  17. tom cruiser


    Hi Abhinav,


    Is there any Fiori App available for contract creation and settlement. Or this can be done only in the backend. My client is asking for Fiori apps for new Settlement process


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