Clarification: Condition Contract Accruals for Sales Rebates compared to SD rebates

[TimS1]

In principal is it correct to say that in Condition Contracts the accruals are very much executed from within the contract itself rather than the billing document? In ECC the rebate price conditions and account determination are used to trigger the accrual, and so when the billing document is created, or retrospectively updated via VBOF, based on the rebate agreement the accrual will be posted through the billing document.

If I understand rightly, in Condition Contracts it is the contract itself that drives the accrual based on reading the the information in the billing documents. Is that correct?

thanks

Tim

[gvictor · Accepted solution]

Hi Tim, 

For Condition contract, accruals can be posted: 

- via billing document, but the amount can’t be changed or recalculated after posting 

- via Delta accrual, specific settlement document type to post accrual outside billing document and using cumulative approach. 

- using both billing document and delta accrual. In that case accrual will be posted most of the time via billing document but if rate, period of validity, selection criteria changes and you want to have the correct amount of accrual recalculated then you have to execute a delta accrual

Regards,

Gauthier Victor 

[TimS1 · Accepted solution]

I know there are these two methods, but the recommendation seems to be to use Delta Accruals and schedule as a periodic job. In this case, do the accruals still get updated in the billing document pricing or is it managed directly through the Condition Contract? That is my question.

[gvictor · Accepted solution]

Hi Tim,

Just saying that you have both options, there is not a recommended Best Practice, it's more about the requirements of the clients (e.g. having a report for the accrual amount per item and billing document --> easier to post accrual at the time of billing). 

Regarding your question, NO the accrual in the billing document will not be updated by the delta accrual. 
The amount posted by the delta accrual will only be visible in the contract/settlement document or report of CCM and NOT in the SD document flow or report.