Settlements Management in S_4 HANA _ SAP Blogs

8/3/2017

Settlements Management in S/4 HANA | SAP Blogs

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Settlements Management in S/4 HANA February 17, 2017

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 Abhinav Jain more by this author 

SAP S/4HAN SAP  S/4HAN A Condition Con dition contract contract | rebate agreement agreement | Set Settlements tlements Management Management

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Objective  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 PP,,

8/3/2017

Settlements Management in S/4 HANA | SAP Blogs

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.

Description 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

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

Introduction Moving into S/4 1610, New Rebate Agreements are no longer available for  creation. Yes, Yes, you heard it right! rig ht! You You can’t create a new Rebate Agreement

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Settlements Management in S/4 HANA | SAP Blogs

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 help.sap.com

 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.

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Settlements Management in S/4 HANA | SAP Blogs

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. Problems: 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.

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Settlements Management in S/4 HANA | SAP Blogs

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

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Settlements Management in S/4 HANA | SAP Blogs

3. Enter the customer and period for whi ch you want to create the condition contract.

4. Enter the Sales data on the 2 nd tab

5. Enter the business volume selection criteria. Thi s steps defines which invoices are relevant for application of this condition contract.

6. Enter the settlement Material

7. Enter the Settlement Calendar. This step defines when you would like to carry out partial/final settlements.

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Settlements Management in S/4 HANA | SAP Blogs

8. Create Rebate Accrual condition

9. Change condition Table

10. Create Rebate condition

11. Save the Condition Contract

12. One thing is of utmost import is to release the contract. Hence release the contract in WCOCO

13. 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

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Settlements Management in S/4 HANA | SAP Blogs

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 ‘Li ve Run’.

Once executed, you will get a message like shown below

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Settlements Management in S/4 HANA | SAP Blogs

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,

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Settlements Management in S/4 HANA | SAP Blogs

 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

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Settlements Management in S/4 HANA | SAP Blogs

planning to create new rebate agreements before you upgrade to SAP S/4 HANA. 2. SAP Business Suite customers can move from various rele ases 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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24 Comments You must be Logged on to comment or reply to a post.

Sahil Jain February 21, 2017 at 10:55 am

Thanks a lot Abhinav…Its nicely consolidated. I was searching for document on Settlement Management and this looks perfect

 Abhinav Jain

Post author 

February 23, 2017 at 7:44 pm

Thanks Sahil !

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Settlements Management in S/4 HANA | SAP Blogs

Jasjeet Singh Sachdeva February 23, 2017 at 3:02 am

Very well compiled and written Abhinav!! Great job.

 Abhinav Jain

Post author 

February 23, 2017 at 7:44 pm

Thanks Sir !

 Andre Drabbe March 1, 2017 at 5:18 am

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.

Twinergy OSS HORSA March 7, 2017 at 2:57 pm

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

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Settlements Management in S/4 HANA | SAP Blogs

Saurabh Sawant March 8, 2017 at 1:35 pm

Thank You so much for this ! Helped a lot. !

Huyen Tran March 13, 2017 at 9:00 am

Thanks for sharing. Very clear and well structured!

Zahid Anwar  March 15, 2017 at 9:19 am

HI ,

can you please share how Retroactive rebates will work in S4H. can you please explain the process in detail.

 Ana Fleisch March 16, 2017 at 4:05 pm

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

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Settlements Management in S/4 HANA | SAP Blogs

Francesca Milardo March 29, 2017 at 2:06 pm

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?

thanks, Francesca

Robert Forster  May 16, 2017 at 1:53 pm

Hi, in my EHP7 system no WB2R* transactions are available. Is this S4 only function?

BR

Robert Forster  May 17, 2017 at 5:10 am

Hi, i just found that my EA-GLTRADE is on 600 not 617 reason.

BR

maybe that’s the

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Settlements Management in S/4 HANA | SAP Blogs

 Abdullah Attia May 17, 2017 at 7:48 pm

Hi,

could you add link for configuration or just steps here?

 Aruna kumar Biswal May 19, 2017 at 1:44 pm

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.

Regards  Arun

Pranav Dave June 14, 2017 at 10:10 am

@ 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.

Thanks  Abhijit Aswalikar 

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Settlements Management in S/4 HANA | SAP Blogs

M CRM June 26, 2017 at 8:42 am

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

Thanks so much .

Raghu Sharma July 13, 2017 at 4:28 am

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?

Thanks Raghu

Guillaume Villain July 27, 2017 at 1:26 pm

Hi Raghu,

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Settlements Management in S/4 HANA | SAP Blogs

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

Nguyen Cong Tan July 27, 2017 at 8:51 am

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

Thanks, Binh

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Settlements Management in S/4 HANA | SAP Blogs

July 27, 2017 at 11:08 am

Hi Nguyen Cong Tan, Go to BP, in sales & dist tab, there is check box for relevant for settlement management .

Thanks  Aniket AM

Nguyen Cong Tan July 28, 2017 at 7:27 am

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 Thanks, Binh

Nguyen Cong Tan July 28, 2017 at 8:45 am

Dear Experts, I create settlement document by tcode WB2R_SC – Customer Contract Settlement .  A Credit Memo has been created but the settlement qty = 0.

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Settlements Management in S/4 HANA | SAP Blogs

Please help me check this issue Thanks, Binh

 Aniket Mohod July 28, 2017 at 11:35 am

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’

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Settlements Management in S/4 HANA | SAP Blogs

Thanks  Aniket

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