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Configuration Steps – Settlement Management in S/4 HANA

Objective

Having worked on Rebate Management in the past with SAP Innovative Business Solutions ( Custom Development previously ) and exploring Settlements Management in SAP S/4HANA in my earlier blog, I though to proceed in the area of configuration which is more of self learning and initiative as I couldn’t locate too many experts in this domain. Hence I did some dig-down my self and thought to share my knowledge, whatever little I could gather. This blog will cover the basic Customizing steps for SAP S/4HANA 1709 Condition Contracts which is a new solution replacing Rebate management.

For detailed and standard delivered customizing you may refer to SAP note 2535889.

 

Prerequisites

  • Understanding of Rebate Management in ECC.
  • Understanding of Condition Contracts in SAP S/4HANA 1709. For details on what condition contracts are, you may please refer to my blog.
  • Understanding of basic SD terms Condition Type, Condition table, access sequence, pricing    procedure etc.

Steps

This blog will be divided into the following sections

  • Configure Pricing & Conditions
    • Condition tables
    • Access Sequence
    • Condition Types
    • Condition Contract Relevance for Condition Types
    • Condition Type Groups and assignment of Condition types
    • Pricing Procedure
    • Document Schema group for Settlement Document Types
    • Pricing procedure determination
  • Configure Condition Contract Maintenance
    • Number range
    • Condition contract types
  • Settlement Document types
  • Settlement Process
    • Condition Contract
    • Sales Order
    • Settlement

 

Steps explained

Configure Pricing & Conditions

Condition tables

The condition table maintenance can be accessed at

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Maintain Condition Tables

SAP provides condition table 4AB, 163 etc. by default.

The condition tables specifically defined for Condition Contract Management contain the condition contract number as key field. Let’s create 2 customer specific condition tables 510 and 511 which are copy of 4AB and 163 respectively to understand with an example. This can be done at above mentioned link using the ‘Create’ option. This will generate A510 and A511 tables in the backend.

 

I am doing this the custom way to explain the basic customizing steps from scratch so that we don’t scratch our heads later.

 

Access Sequence

The access sequence maintenance can be accessed at

  • Sales

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> Define Access Sequences->Maintain Access Sequences

  • Purchase

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Materials Management (MM) -> Define Access Sequences -> Maintain Access Sequences

SAP provides access sequences like COMP etc. by default.

Let’s create a customer specific access sequence ZCMP which is a copy of COMP for both Sales and purchasing.

Let’s assign our condition tables 510 and 511 to the accesses as shown below

Condition Types

The condition type maintenance can be accessed at

  • Sales

Logistics – General -> Settlement Management-> Basic Settings-> Pricing-> Sales (SD)-> Define Condition Types

SAP provides various condition types like REBA.

Let’s create a customer specific condition types ZREB which is a copy of REBA.

The access sequence ZCMP (with 510 and 511) we created earlier, will be assigned to this condition type ZREB.

 

  • Purchasing

Logistics – General-> Settlement Management-> Basic Settings-> Pricing-> Materials Management (MM)® Define Condition Types

SAP provides various condition types like REBA, REBT.

Let’s create a customer specific condition types ZRBA which is a copy of REBA and ZRBT which is a copy of REBT.

The access sequence ZCMP (with 510 and 511) we created earlier, will be assigned to this condition type ZRBA and ZRBT.

 

Condition Contract Relevance for Condition Types

  • Sales

Logistics – General-> Settlement Management -> Condition Contract Management -> Condition Contract Conditions -> Sales -> Specify CC-Relevance and Copy Control for Condition Types

Please set the checkbox for Condition Contract-Relevant

  • Purchasing

 

Condition Type Groups and assignment of Condition types

  • Sales

The condition type group maintenance can be accessed at

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Conditions -> Sales -> Define Condition Type Groups

 

You assign a condition type group to a condition contract type. Let’s create a customer condition type group ZBON which is a copy of group SBON.

Now you have to assign the condition types ZREB created earlier to this condition type group. You may access the path at

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Conditions -> Sales -> Assign Condition Types to Condition Type Groups

You may copy SBON and create ZBON with the following values

 

In condition type group, you assign condition type ZREB for maintaining a rebate condition in the condition contract. This condition will be picked from the condition contract and will be populated in the sales order pricing.

  • Purchasing

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Conditions -> Purchasing -> Define Condition Type Groups

Let’s create a customer condition type group ZBBI which is a copy of group SBBI.

In condition type group, you assign condition type ZRBT and ZRBA for maintaining a rebate condition in the condition contract.

 

Pricing Procedure

  • Sales

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> Define Pricing Procedures

Please note I have changed the standard pricing procedure RVAA01 by replacing REBA with ZREB for testing this solution. You can create your own Pricing procedures. The pricing procedure will be used in the sales order.

  • Purchasing

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Materials Management (MM) -> Define Pricing Procedures

There is a pricing procedure BSETTL available in SAP.

Let’s try to copy it into a custom pricing procedure ZBSTTL which has our rebate condition ZRBT & ZRBA

Document Schema group for Settlement Document Types

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Define Document Schema Groups for Settlement Document Types

You may copy FB to custom group ZB.

A document schema group ZB is created.

Pricing procedure determination

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

The customer pricing procedure is 1 in case of my customer

Copy type FB entry with Customer pricing procedure = 1  to ZB

 

Configure Condition Contract Maintenance

Number range

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Maintenance -> Define Number Ranges

You can define your number range here.

Condition contract types

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract Maintenance -> Define Condition Contract Types

Create a contract type ZBBI which is a copy of SBBI

Assign Sales Condition Type Group to ZBON and Purchasing Condition Type Group to ZBBI we created earlier.

Please note that number range interval is assigned to the Contract type.

Settlement document type

Logistics – General -> Settlement Management -> Settlement Documents -> Settlement Document Types -> All Document Types

Double click on Document type and assign the document schema group we created earlier.  In the Document Schema group, assign the value ZB we created earlier. Please note I am just skipping a step to a create a Z Document Type and instead assigning Document Schema Group to an existing Document Type.

Settlement Process

Condition Contract

Let’s create a condition contract in SAPGUI transaction WCOCO – Condition Contract. You can follow the blog to create condition contract.

There will be multiple options to create conditions now. Our own condition tables are now visible in the Condition table drop down.

You can add a Rebate condition value ZRBT 5% – This will be available in the Settlement document credit memo.

You can add Bonus Accrual value ZRBA 3 % – This will be available in the Settlement document credit memo.

You can add Bonus accrual value ZREB 1% – This will be available in Sales order.

Sales Order

Let’s create a Sales order in SAPGUI transaction VA01 – Create Sales Order

Pricing will show ZREB 1% as one of the conditions

This has come from the below condition we created in Condition contract.

Settlement

Run SAPGUI transaction WB2R_SC – Settle Condition Contracts.

This will create a ZRBT 5% and ZRBA 3 %– Rebate condition in the credit memo. Please ignore the reversal documents as they were created for testing.

Also the condition tables have the entries we had created.

 

There are a whole of other customizing steps mentioned in the configuration guide which can be accessed via SAP note 2535889

Hope you enjoyed the blog and found it useful.

53 Comments
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  • Another source of information on settlement management configuration is SAP Best Practice Explorer. Recently I came across a detailed configuration guide located here (S-user is required to access the content): https://rapid.sap.com/bp/#/browse/categories/sap_s%4hana/areas/on-premise/packageversions/BP_OP_ENTPR/S4HANA/1709/DE/4/EN/scopeitems/1B6 . The actual file is under building block BK6. The name is a bit confusing – Sales Rebate Processing (BK6), but it is the real deal. 🙂

     

  • Hai Jain,

    I have some case. I know business volume are generated from net value invoice (NETWR). And my invoice have some other surcharges. So, how we can make my business volume are excluded the other surcharges?

    Your advice are really appreciated.

    Thanks.

    • Hi Peter,

      Search for Define and Configure Profiles for Business Volume Determination under

      Condition Contract Settlement..

       

      Thanks

      • Hi Jain,

        I’ve searched and tested but it can’t be done. From “Define and Configure Profiles for Business Volume Determination” , i didn’t find where is condition type “PR00” have assigned to amount fields. I don’t know whether this is the standard habits from settlement management or not. Because, my business process is business volume determined by price and quantity of material. Surcharge and discount are exclude from net value of business volume.

        Can you give some advices?

        Thanks.

  • Hi Abhinav,

    thank you for the Blog. It is very helpful.

    I try to setup a prototype for SD in a ERP EHP-8 system. But I is very complicated, due to missing standard customizing settings. E.g. no standard condition type like REBA, REBT is available. Furthermore, the condition contract type SBBI inlcluding a SD condition group SBON which is not available in customizing etc.etc. So I have no template for copy.

    Do you have any idea what´s to do…?

    Thank you, regards

    • Hi Marco,

      I did this in S/4 system where the configs were available. Do you have access to such a system ? Not so sure about ERP…

      Best,

      • Hi, it seems like the content is available only in S/4 HANA 1709 system. I didn´t find it in S/4 HANA 1610 and ERP EHP-8.  Unfortunately it is very difficult to customize a prototype in an ERP system.

        Regards

  • Hi Abhinav

    one more question about CCS. In ERP rebate processing we use scale groups to distinguish between scale base and rebate base. Do you know how to setup this with CCS process?

    Regards Marco

  • 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

    Rogerio

     

  • Hi Abhinav,

    We have an intercompany scenario where shipping plant is from different company code in sales order line item. When we deliver the goods are shipped from shipping plant and when we invoice the billing document is created in sales plant. This is as per standard SAP.

     

    Now we when we come to settlement management, if we activate the option ‘Document Entry with Plant Data’ then credit memo pulls the Plant from shipping company code which is maintained in sales order line item. If we dont use this option then no plant is determined in credit memo.

    Moreover, it is expected that settlement document should also pulls the plant same as billing document which is sales company plant. Have you encounter this scenario or any suggestions will be appreciated.

  • Hi,

     

    Thank you for the document and it is very well explained.

    Can we use this process to map Commission Processing? We have an Agent(Not part of the Organisation) who is paid commission based on the value of goods dispatched for a Sales Order.

    Kindly let me know if we can use this process to configure Commission for Agents.

    Thank You

    Regards,

    Ashwin

    • Hi Ashwin,

      Not sure i understand. If he is not part of the system ( neither as customer nor as partner function ), generate an invoice ( not a credit memo ) for yourself as the customer.

      Best,

  • Very Good document and very helpful.

    One question as I do not know the process at all. In Purchasing Rebates is it possible to distribute them  to materials?

     

    BR

     

  • HI Abhinav ,

    we have EHP6 version and it does have settlement management node under SPRO (logistics general)

    Does it need higher version of EHP To have it enabled or any business function needs to activated.

     

    Regards,

    GautamS

    • Hi Gautam,

      In ECC, condition contract  functionalities are available since 606 release.

      Enterprise add-ons required:
      EA-GLTRADE
      EA-RETAIL

      Business functions required:
      ISR_GLT_VENDOR_FUND
      ISR_GLT_VENDOR_FUND_2
      ISR_RET_COMPENSATION

      ISR_RET_AGENCY
      ISR_RET_AGENCY_2
      ISR_RET_AGENCY_3
      ISR_APPL_AGENCY_4
      ISR_APPL_AGENCY_5
      ISR_APPL_AGENCY_6

       

      Best,

      Abhinav

  • Hi Abhinav,

    I tried to follow your blog to test Settlement Management. In VA02 the condition type REBA doesnt show up and when I look in Analysis Pricing I get some problems. I dont know where I can read the meanings of messages. It says, that I dont have condition records, but in wcoco I created them. What did I wrong ? Im pretty new in SAP (since 1st March 18) and I hope you can help me.

    Best Regards

  • Hi,

    Thanks for your blogs. It’s useful for me. But can you hint me to config  business volume selection criteria?

    Best Regards

  • Hi Abhinav….Nice post!

    I have a typical scenario where by I want to pay rebate to a vendor based on sales volume. Example: Vendor has supplied 100 Iphones to me, I have sold 60 Iphones from the stock to end customers. Now, I want to pay Vendor 5% rebate based on sales volume of 60 phones. How do I achieve this?

    • Hi Vishal,

      Have a rebate condition of 5% in your conditions area.

      Your business volume should point to a sales + billing table.

      Have a pricing procedure which will have Business volume condition , Rebate condition, tax condition ( if needed ).  This pricing procedure need to be assigned to a schema group which will be assigned to Settlement Document type

      Customize the BV condition in Define and Configure Profiles for Business Volume Determination.

      Best

      Abhinav

       

       

  • Hi Abhinav,

    Nice document.

    Maybe you can offer also a solution for our following scenario:

    We have a customer based Rebate. The Customer is linked to a vendor number. For one special condition contract type we will post the rebate on the vendor account. How I have to setup the condition contract type?

    Additionally: If the customer has no link to a vendor we will not post on the customer account. In this case we will post on special GL-accounts. Is this possible?

    Thanks.

    Best regards

    Frank

     

     

     

  • /
  • Good morning, I have configured the settlement documents, but I have errors in the accounting entries.

    when the settlement is generated, I reverse the provision but also the customer seats, so it cancels the sale and the provision.

    Someone have the same error?

     

    Please your help

  • Hi Abhinav,

    Thanks for the document. I have a question related to rebate condition types, why a few rebate conditions are appearing in sales order and a few are not. Is there any specific business logic for bringing them in SO? Is it just for informative purpose for the customer service person to understand there is a rebate in the SO?

    Sai

  • /
  • Hi Abhinav,

     

    Great Document and very Lucid.

    I have come across one issue over here after following the steps. The scenario is Commission amount is calculated based on Quantity. At the time of Sales Order Creation to Invoice Creation the Commission Value is calculated correctly based on the Rate (1.00 INR per KG). However, when I try to settle to Contract, the Settlement amount is that of the Condition Rate only instead of the total Sales Invoice quantity.

    Any guidance in this is highly appreciated.

     

    Best Regards

    Rahul

  • Hello,

     

    I am getting the following message but the settlement document number is not generated.

     

    Kindly help. I have also checked the number range and it is assigned correctly in settlement document.

    /
  • Dear Abhinav ,

     

    Thanks for the Settlement Management Process details screens and cycle.

    When I tried from my side , I am facing an error as below :

    The condition Records are getting available in the Table as below :

     

    ZREB Condition Record :

    Condition Contract 1000000014
    Valid On 30.01.2020

    Material       Status      Description     Processing stat Amount Unit     Valid From Valid to

    HPDINRR     Q6511A  LJ 2400 SER-6000PG   433.00 INR B    28.01.2020 13.02.2020

     

    But when I create VA01 sales order , the contract number is not coming in the ZREB Condition Record . The access is not met as the contract number is not appearing in the item condition :

    It says the

    Access details 012 ( ZREB)

    Access   Message    Description

    012          102           Access not made (initialized field)

    Field in Condition Table Field in Document Value in Document
    Condition Contract Condition Contract < No value >
    Material   Pricing Ref.  Matl  HPDINRR

     

    Though the contract number is available in Condition record ( as far above) , the contract number is not coming in the condition records in the sales order Item . ( But the material HPDINRR is coming in the item condition.

    Any config. is missing anywhere ? Can you please advice?

    Thanks much for your time.

    Regards

    Karthik

  • Dear  Abhinav,

    We have a business requirements where business wants to see rebate bonus per line item of billing documents. Like if i have done the settlement which is having 5 invoice then they wants to see bonus per material of each invoice. Do we have any report where can we see settlement number, billing document, material and bonus per material?

    Thank you in advance for your help.

    Regards,

    Vikash

  • Hi Abhinav,  Settlement management can be used for charge backs also. Can you please throw some light. Our client is in life sciences industry and looking for charge backs implementation. I could find only SAP vistex only supporting charge backs.

  • Hi Abhinav,

     

    Thank you for posting this useful content.  One question I have for you – have you created a truly custom table (not just a copy of the SAP standard), using a field like Plant or Volume Rebate Group?  If so, is there something special you need to do to get the values for these fields populated in the Settlement Document?

     

    Thanks!

    Rahul

  • Hello,

     

    In our ERP ECC system, I do not see the option Settlement Management under Logistics – General. Is it possible to configure the Settlement Management solution in ECC at all, or can it only be done in an S/4HANA system? My understanding is that it is a prerequisite for going to S/4HANA, same as CVI / BP (which we configured in our ERP ECC system).

     

    Thank you,

    RVS