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Settlements Management in S/4 HANA


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.
  7. Configuration steps


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  • 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.

    • Hi Catherine,


      I know I am very late. You can find the config guide in the note 2535889. You are getting this error probably because Pricing procedure determination has failed. Check of the Document schema group has the procedure assigned at

      Logistics - General -> Settlement Management -> Basic Settings -> Pricing -> Pricing Procedure Determination

    • Hi Catherine,

      I know I am very late. You can find the config guide in the note 2535889. You are getting this error probably because Pricing procedure determination has failed. Check of the Document schema group has the procedure assigned at

      Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Pricing Procedure Determination




  • 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


    • Hi Zahid, The retroactive rebate should work similar to ECC but without VBOF application. For example, a condition contract is created on the 1st Feb 2018 with validity dates 1st Jan to 31st Dec, 2018. Whenever the next settlement is run it would pick up all the billing documents lying in the validity period. Hope it helps...


  • 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

  • Hi,


    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?




  • 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.




  • @ 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


    • 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.


  • 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?




    • 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

    • 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?



  • 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





    • 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



  • 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



  • 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'







    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





    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


  • 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?




    • 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?

  • Thanks Former Member


    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!!



  • 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..






    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

  • Hello Expert,

    I need your advice to create estimate accruals for customer settlement.

    Scenario: -

    customer contract for 1 year{Jan to Dec], Target $10,000 of sales, rebate 10% of sales upon the target is reached. The requirement is to calculate 10% and book accruals only[no settlement] on monthly base to know the liability. At year end the customer final settlement needs to be performed in case  target is met or else all accruals posted from Jan to Nov needs to reversed.

    How to implement this scenario in settlement management. Which settlement document types should be used is there a two set process for customer settlement[one accruals & another settlement] ?








  • Hi Abhinav,

    I have a question below and hope you can assist:

    Condition Contract validity: 1 July 2017 till 31 Dec 2017
    Invoice created from 1 July onwards till end of year 2017 will have the rebate accruals automatically posted.

    How about invoices created before 1 July 2017 ? Since the rebate is granted retroactively, how the rebate accruals can be accounted for as there is no more VBOF in S/4 HANA 1709 ?

  • Hi Gurus,

    I am facing a problem regarding a similar issue, when i run the transaction WB2R_SC  the results is Ok (green) but the I got a mensage  ” Document $$00000001 has status C and is complete“,and when I try to find or open that number the document is not created.

    I review the custo about the calculation,condition contract type, the number ranges for the  Settlements  document  and in the table WBRK can`t see the documents.

    Any idea?

    best regards



  • Hi,

    As far as I know, SAP was not able to accrue / pay the rebate based on different VAT rates. If I create a rebate agreement for a customer (for example a rebate of 1% for all products belonging to material group “X”), the dummy material for settlement, linked to the material group, would provide important data as account assignment or tax determination. From a tax point of view, the different products in material group X could have different tax code, and SAP would pick the tax classification up only from the settlement material. Hence, we could not have splits by tax codes. Is this as I have explained? Is there any solution for S4 HANA?



  • Hello Abhinav,


    Thanks for your blog.

    May I ask a question about con.con.type C001, C002, C003.

    C001 /C002 are descripted as "condition contract for eligible customer list",  and C003 is for standard conditions.

    do you have any further detail share about them?



  • Hi, I have a question related to transfer manager. Once a settlement document is created the division from the condition contract flows into to FI and copa. We have a business requirement where we want to pass the material master division to fi and copa during the settlement process. Somehow not able to find the transfer group related to material division. Can anyone direct me to he right direction.


  • Hi Abhinav,

    Thanks for your shared information. I am trying to configure the process in SAP ERP 6.0 EHP8. I am wondering if it is possible to use the fiori apps in this version, or whether that will only work from S/4 hana?


    Br Camilla




  • Hello Experts ,

    I am mapping Rebate process into settlement managment -

    1.Exchange Rate - I

    f billing date (FKDAT)  and settlement date (Partial / Final) is different then exchange rate for currency will different how we can fix this issue.

    2.Business volume determination -

    If we remove "rebate" relevance flag for billing document (TVFK) system doesn't consider it while calculation of business volume (Table - VWB2_VBRKVBRP_1) but in the same way it doesn't work for customer master "Rebate " flag.


    Thanks in advance.




  • Good Morning, I have configured the settlement documents but I have error in the accounting entries.

    When the settlement is generated I reverse de provision but also the custumers seats, so it cancels the sale and provision.

    someone could help me?

    I have pictures of errors if someone have the solution.





  • Hi Abhinav,


    While running settlement Program, i am receiving an error message.

    Pricing Procedure could not be determined "WS220"

    i checked pricing procedure, as per SAP standard 0S,0T,0U,0V are assigned to PP. anything else to be checked.

  • Hello Experts ,

    We are working on the migration of rebate agreements  in ECC to contracts of conditions in S/4.

    Most of rebates agreements in ECC are available from 1st day of the Year to the end of the Year.

    The migration is planned in the middle of a year.


    And I’m facing to 2 problems :

    How did you migrate Business Volume for ECC to S/4 ? dis you use a Z table in  “profiles for Business Volume Determination”?

    How did you integrate the amount of partial settlement to reduce the final settlement ?


    Thanks in advance




  • Thanks a lot Abhinav…Its nicely explains the concept.

    One doubt regarding the settlement process, I want to do the partial settlement every month. How i can configure so that every month the partial settlement will create for the business volume for that month.

    Appreciate your help.

    Thanks and Regards,



  • Nice wiki!


    Did some one got a solution to the dupliate key error? We have this as well and are stuck on this ...





  • Hi guys,

    I am looking to add custom fields to the table VWB2_VBRKVBRP_1 for Business volume. We have to build some custom logic based on the custom fields. Is this possible?

    Basically we have to look at last year sales history and give rebates based on sales growth from last year.

    Any suggestions are greatly appreciated.



  • Hello


    I am facing the error "

    The pricing for line item 000001 of document $$00000001 could not determine an Output Tax code. This means that the line item is not created properly." while trying to do the settlement. Can anyone please help. anybody encountered same issue?



    Subhasis Dutta

  • Hi Guys,

    i have configured the condition contract management as described here. I have done a partial settlement for a periode 1 for example and a credit memo has been created. In periode 2 i am creating a second partial settlement with a credit memo but the already settled invoices in periode 1 are also taken in account in periode 2.

    Can somebody help to understand why ?

    Best regards


  • Hello Folks,

    I'm trying to settle a contract without taxes for US scenario (due to the company activity sales taxes are not needed) and I get errors when I execute t-code WB2R_SC when trying to do the partial settlement.

    I have changed the US standard pricing schema removing all taxes condition types because they are not needed (see screens attached) also I removed the tax flag "Calculate tax amount" under "Define Settlement Process Types" for ZS10 Sales Rebate Credit option and I'm still getting errors, the system is asking me for the taxes.

    Anyone has any idea on how to avoid taxes determination in partial/final settlement for US?


    Thanks in advanced.