Configuration Steps – Settlement

Management in S/4 HANA

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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

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





 Alert Moderator

Assigned tags
  SAP S/4HANA
 Condition contract
 configuration
 Rebate Management
 Settlement management

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41 Comments
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Veselina Peykova

January 11, 2018 at 8:47 am

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.

o Like(1)

Abhinav Jain Post author

 January 11, 2018 at 4:39 pm

Yes Veselina, that is used as part of the SAP Activate methodology which the customers use to jump start their adoption to
S/4HANA

 Like(0)

Jan Thiesen

July 11, 2019 at 1:29 pm

Hello together,

i´ve set up the CCM in our system and i got one problem left – if settle a contract (partial settlement) i get two item lines for one
material – one is positiv, one is negativ – but i want this in one line – is anyone having this problem as well and has a answer?

Thx for your help

 Like(0)

arnab sarkar

January 11, 2018 at 10:00 am

Hi Abhinav,

Really appreciated.

Keep posting some S/4 HANA simple logistic related BLOGs.

 Regards,

Arnab

o Like(1)

Abhinav Jain Post author

January 11, 2018 at 4:39 pm

Thanks Arnab !

 Like(1)

venu gopal

January 12, 2018 at 12:52 pm

Hello Jain,

Nice document

o Like(1)

Abhinav Jain Post author

January 12, 2018 at 8:14 pm

Thanks Venu !

 Like(0)

Former Member
 January 27, 2018 at 4:14 pm

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.

o Like(0)

Abhinav Jain Post author

January 29, 2018 at 9:48 pm

Hi Peter,

Search for Define and Configure Profiles for Business Volume Determination under

Condition Contract Settlement..

Thanks

 Like(0)

Former Member

January 31, 2018 at 4:22 am

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.

 Like(0)


Joochul Kim

January 28, 2018 at 1:20 pm

Hi Abhinav,

It is really informative and helpful.

Appreciated.

o Like(1)

Marco Wagner

February 2, 2018 at 4:00 pm

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

o Like(0)

Abhinav Jain Post author

February 4, 2018 at 6:13 pm

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,
  Like(0)

Marco Wagner

February 8, 2018 at 7:23 pm

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

 Like(0)

Marco Wagner

February 19, 2018 at 3:02 pm

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

o Like(0)

rogerio de souza lima

March 14, 2018 at 5:35 pm

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

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Abhinav Jain Post author

March 17, 2018 at 4:59 pm

Hi Rogerio,

Have you taken the live mode ?

Best,

Abhinav

 Like(0)

rogerio de souza lima

March 19, 2018 at 12:06 pm

Hi Abhinav,

Yes I do and has created a document. The problem is whe i run in backgroud and to get ir linked with the contract.

Kind regards

Rogerio

 Like(0)

abhinay gautam

March 27, 2018 at 8:51 am

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.

o Like(0)

Abhinav Jain Post author

May 1, 2018 at 4:00 am

Hi Abhinay,

Let us take a step back. Could you explain how does the rebate scenario mapping into the intercompany scenario ? Who is giving
rebate to whom ?

Best,

 Like(0)

abhinay gautam

May 15, 2018 at 1:41 pm

Hi Abhinav,

Sales Company where order was received is giving rebate to customer.

BR/Abhinay

 Like(0)


Ashwin Chandrasekaran

April 30, 2018 at 9:38 am

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

o Like(0)

Abhinav Jain Post author

May 1, 2018 at 3:55 am

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,

 Like(0)

Alexandros Ntais

May 16, 2018 at 2:51 pm

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

o Like(0)

Abhinav Jain Post author

May 17, 2018 at 1:14 am

Yes Ntais.

 Like(0)

Gautam S

June 28, 2018 at 3:51 pm

HI All

o Like(0)

Gautam S

June 28, 2018 at 3:55 pm

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
 o Like(0)

Abhinav Jain Post author

June 28, 2018 at 9:02 pm

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

 Like(0)

I am Marvin

July 10, 2018 at 9:59 am

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

o Like(0)


Tran Trang

July 10, 2018 at 4:53 pm

Hi,

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

Best Regards

o Like(0)

Vishal Tandon

August 2, 2018 at 2:16 pm

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?

o Like(0)

Abhinav Jain Post author

August 2, 2018 at 7:20 pm

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

 Like(0)

Frank Bork

August 10, 2018 at 1:27 pm

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

o Like(0)

Neel Patel

February 28, 2019 at 2:47 pm

Hello Frank, We have a similar requirement and could you please shed some light
 Regards,

Vamsee

 Like(0)

Nilesh Sukhdeo Sonawane

October 9, 2018 at 10:37 am

Hello Experts ,

I am configuring settlement management but I could not view any condition contract type in drop down list in T code WCOCO.

Kindly suggest.

Regards,

Nilesh
 o Like(0)

Kumar Gunjan Sunit

October 14, 2018 at 11:05 am

Abhinav , it was very thoughtful of you to share this.Surely it will help many consultants to learn and configure rebate process in S4 HANA.

Lot of thanks…

o Like(0)

Kripa Rangachari

December 4, 2018 at 9:08 pm

Thanks for the Step by Step information on Settlement Processing…

Cheers,

Kripa Rangachari.

o Like(0)

Juan Carlos Godoy Q

May 8, 2019 at 12:22 pm

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

o Like(0)


kesari sai krishna Sabniveesu

June 11, 2019 at 11:15 pm

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

o Like(0)

Ricardo Van der Westhuizen

August 11, 2019 at 1:11 pm

Hello All ,

Would like a support on this issue , i am at final step of settlement management and getting the below error ,

Thanks

o Like(0)


Functional Autotech-Sirmax India Private

September 6, 2019 at 6:22 am

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

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