SAP Community - Settlement Management

Settlement Management - Condition Contracts

2020-10-19T10:54:28+02:00

Introduction:

Calculating Rebates - Traditional vs S/4HANA way

In ECC system, it was necessary to set up accruals while setting up rebates as they are retroactive discounts. Conventional rebate system does not provide the flexibility to use same configuration and T-Codes for both the supplier and the customer side. It was essential for the system to keep track of all relevant documents including invoices, cancellations, credit, and debit memos, etc. In the ERP system, table VBOX stored all the relevant invoices. This table contained a huge number of rebate entries and any change in a customer’s scenario required the entire table to be rebuilt. During which, all rebate data would get locked throughout the organization, resulting in major blockages and preventing critical tasks.

SAP S/4HANA has an innovative functionality called ‘Settlement Management’, which offers an intelligent solution for the above scenario irrespective of volumes. It handles the settlement of customer and supplier rebates seamlessly and provides a centralized and standard solution for managing supplier and customer conditions. Settlement Management in S/4HANA has various key advantages over traditional ERP rebate solution. It provides a real-time insight into the data related to actual business volume and accruals from sales order and sales invoice’s header and item tables. It comes with the feature of defining supplier and customer contracts by a single T-code and entry screen. This entry screen also provides options for inclusion/exclusion of conditions based on various organisational and master data aspects like customer, material, sales organization, material group, customer hierarchy and so on.

Condition Contract

This is a very important part of Settlement Management. Condition Contract allows to store all information related to an agreement, such as parent customer, eligible partner and contract conditions. It also contains important information, such as prices and the validity of the agreement. There is an exhaustive list of Condition Contract types that can be selected from various options to suit your business needs. Condition Contract consists of four main sections, mainly Condition Contract header, customer/vendor data, relevant conditions and settlement information. Multiple standard reports are available around Condition Contract for business use.

Key Process Flow:

Prerequisite:

Basic understanding of Rebate Management Process is required.

Understanding of SD pricing condition technique that includes Condition table, Access sequence, Condition Type, Pricing procedure etc.

Understanding of Rebate Settlement.

Activation of Scope-Dependent Application Job Catalog Entries (S/4HANA)

Check the following entries:

Getting Started

Customizing – Sales & Distribution:

The configuration of Condition Contract Management comprises of three main steps:

Configure Pricing including Condition Contract Conditions

In this step, you define pricing conditions that are relevant for the calculation of the settlement amount during the condition contract settlement. In particular, you make specific settings for the so-called condition contract conditions which you enter in the condition contract maintenance in the Conditions screen area. Contract conditions usually comprise the rebate and accrual conditions.

Configure Condition Contract Maintenance

In this step, you first define and configure parameters for condition contract types and then the condition contract types themselves.

Configure Condition Contract Settlement

In this step, you first define and configure parameters for condition contract settlement. Then you enhance existing condition contract types with these parameters

Other Configuration Settings:

Business Process:

Create Condition Contract – Business Volume Selection Criteria

Create Condition Contract - Conditions

Condition Contract - Settlement

Conclusion and Key Takeaways:

Condition contract management provides central, standardised solution for the administration of supplier and customer conditions.

Condition contracts support single or multiple customers/suppliers.

Condition contract supports different types of settlement defined o the settlement calendar.

Settlement and Accrual conditions are created independently on the condition contract.

Accruals can be posted during invoicing or as a single document on delta accrual.

References and Further Reading:

2497386 - Required business functions for Settlement management

2481672 - Condition Contract Management - Useful Documents

2815535 - FAQ: Condition Contract Management by Settlement Management in SAP S/4HANA

Workflow configuration for Condition Contracts & Settlement Documents

2020-11-16T20:38:40+01:00

Introduction

SAP S/4HANA has an innovative functionality called ‘Settlement Management’, which has been completely transformed when compared to classic rebate management. It handles the settlement of customer and supplier rebates seamlessly and provides a centralized and standard solution for managing supplier and customer conditions. Settlement management in SAP S/4HANA is tightly integrated with order to-cash processes along with the relevant finance (FI) and controlling (CO) modules. Condition Contract allows to store all information related to an agreement, such as parent customer, eligible partner and contract conditions. It also contains important information, such as prices and the validity of the agreement.

System can be configured to manage workflows for sales rebate processing such as the approval processes for condition contracts and settlement documents and the release of condition contracts for settlement.

In this blog post I will explain how to configure the workflow for the Condition Contracts in simple steps. I will also explain the additional setting that is required for the Settlement documents workflow. The steps mentioned in this blog post contains some technical settings. If you are a functional consultant, I recommend you to work alongside technical consultants or workflow administrators to complete these steps.

Prerequisite:

Understanding of Rebate Management Process in S4 HANA is required.

Understanding of Condition Contracts and Settlement documents is required.

Some knowledge of SAP workflow will be an advantage.

List of workflows and possible steps for Sales Rebate processing:

Getting Started

The workflow functionality for Condition contracts can be achieved with few configuration steps.

Steps to configure and test the workflow:

Step 1: Identify SAP standard business objects and workflows

Step 2: Activate linkage

Step 3: Assign users to the Standard Task

Step 4: Assign users to the Workflow step

Step 5: Testing
a. Create a Condition Contract and request approval
b. Display Business Workplace
c. Execute the task

Step 1: Identify the SAP standard business objects and workflows

List of some of the relevant business objects and workflow templates:

Condition Contracts:

BUS2235 – Business object for Condition contracts

WS03100006 – Workflow template to Release Condition contract
WS03100007 – Workflow template to Release Condition contract for settlement

Settlement Documents:

BUS2100          - General Settlement document
BUS2100001    - Supplier Settlement List
BUS2100002    - Settlement document

WS20000691 - Release Settlement document
WS20000692   - Change Settlement document
WS20000694   - Correct Settlement document

Step 2: Activate Workflow

Goto tcode SWE2 and create a new entry as below:

Object category : BO BOR Object Type
Object type : BUS2235
Event : TOBEAPPROVED
Receiver Type. : WS03100006
Receiver call : Function Module
Receiver FM : SWW_WI_CREATE_VIA_EVENT_IBF
Linkage activate : Checked

This step can also be performed using the transactions PFTC/SWDD/SWUD.

Settlement documents:

For settlement documents, in addition to the above setting I need to make additional configuration change as shown below.

Tcode: WLFA

In the Settlement document type definition, I need to activate the 'Control of Event call-up' in the Special processes section. Only then the relevant events will be triggered.

Step 3: Assign users to the Standard Task

Tcode: SWDD

Open the Workflow: WS03100006

Click on ‘Agent assignment’ button for workflow step 000004 Release Condition contract

Maintain Agent assignment screen is displayed.

Click on Attributes button for the selected line. In the pop-up screen, select the option ‘General Task’ (this is for testing purpose only). In the real times scenarios other options are mostly used.

Click on Transfer button.

Now click on ‘Update Index’ button.

Press F3 to go back to SWDD Workflow builder initial screen.

Step 4: Assign users to the Workflow step

In the workflow builder screen, select the workflow step and click on the Change button as shown below

Select the Agent as Workflow initiator. This will enable the approval request will go to the person who initiated the request which will enable the testing easy. In the real-time scenarios, other options like role/rule are popularly used.

Before I exist this screen, I make sure the workflow step has the following settings

Binding exists
Agents were assigned (‘Workflow Initiator’ in this scenario)
Agent assignment is Green (I have activated this in previous step)

Click okay and go back to the previous screen.

Save

That’s it, I have successfully configured the workflow to release the Condition contracts.
Let’s test it now.

Step 5: Testing:

I will test the release Condition contract workflow setup now.

1. Create a Condition Contract and click on request approval. (Do not release it yet)

Tcode: WCOCO

In the status tab, I can find the status ‘Approval requested’ as active

Save the Condition contract. Workflow will be started automatically in the background.

For testing purpose, I do not need to create new Condition contracts every time. I can use the transaction SWUE and trigger the event as many times as I need. This will enable the workflow to start in the background.

Tcode: SWUE
Enter the Condition contract number in the Object key
Click on Show Event Receiver button which displays the active Workflows
Now click on 'Create Event' button

After the event is created, I expect a message ‘at least one receiver found’

Now workflow is started and a workflow task must be available in my business workplace.

2. Display Business Workplace

Goto tcode: SBWP

List of workflow tasks assigned to me are available in this screen. I can see that the Workflow task to release the condition contract 2000000049 is available in the inbox.

3. Execute the task

When I execute the task, the Condition contract screen will be displayed.

Click on change Condition contract button.

Goto Edit and select either Reject approval/Release document option.

I select the 'Reject Approval' option in this test.

Save and exit. With this step the workflow is completed.
Now let me check the status of the condition contract.

Tcode: WCOCO
In the status tab, I can see the status 'Approval Rejected' as active.

I can repeat the ‘Request approval’ step and can test the workflow again.

Conclusion:

SAP Business workflow can be used for approval processes for condition contracts and settlement documents and the release of condition contracts for settlement.

Users can reject, approve or edit a Condition contract using workflow

SAP Business Objects can be enhanced to create bespoke events, methods, parameters etc.,

Hope this blog post helps you in understanding how to setup workflow for Settlement management.

Thank you and wish you good luck..!!

References and Further Reading:

SAP Help - Workflows for Sales Rebate Processing

SAP Help - SAP Business Workflow

Introducing Rebate and Settlement Management with SAP S/4HANA

2481672 - Condition Contract Management - Useful Documents

Bonusvereinbarungen transparent gestalten mit SAP CCM/CCS

2022-01-05T12:32:35+01:00

Bonusvereinbarungen können schnell komplex und unübersichtlich werden, gerade wenn die Verträge zu Bonuszahlungen noch auf Papier erfasst werden. Das führt nich selten zu falsch ausgezahlten Boni, redundanten Nebenrechnungen oder zum Chaos in Excel-Tabellen. Oftmals geht es hier nicht um kleine Summen, sondern um Beträge in Millionenhöhe.

In diesem Blogbeitrag möchte ich auf die digitale Lösung zu Bonusvereinbarungen von SAP eingehen, mit der sich solche Probleme vermeiden lassen.

SAP TOOL CCS/CCM

Durch die Umstellung auf S/4 HANA wird ***removed by moderator***, welches als Bonuslösung für den Einkauf entstanden ist, zu Condition Contract Management (CCM). Damit möchte SAP verdeutlichen, dass CCM nicht nur für die einfache Abrechnung (Settlement) von Konditionskontrakten verwendet werden kann.

CCM gehört zum Settlement Management. Die Funktionen von CCS und CCM unterscheiden sich jedoch nicht. Sie können ihre CCS-Installation einfach nach S/4HANA übernehmen.

In unserem Beitrag ***removed by moderator*** erfahren Sie mehr zu dieser Umstellung.

Bonusabrechnungen mit SAP CCM/CCS

Der Umstieg auf ein digitales System hilft dabei, die Probleme zu Bonusabrechnungen zu vermeiden. Mit SAP CCM/CCS können Sie Ihre Bonuszahlungen und die nachträglichen Vergütungen digital abbilden. Alle Vereinbarungen können an einem Ort abgelegt und eingesehen werden. Mit nur wenigen Klicks können Sie feststellen, welche Zahlungen bereits getätigt wurden und welche noch ausstehen. Dadurch können Sie Ihre Bonusprozesse auch in Ihren ***removed by moderator***-Prozess integrieren und die Nachvollziehbarkeit erhöhen.

Das sehr flexible Customizing in SAP CCM/CCS erlaubt eine einfache Integration in Ihr SAP-System. Unsere Erfahrung zeigt, dass Sie bei Abweichungen von Lieferzeiten, die im System erfasst wurden, über SAP CCM/CCS Lieferpönale abrechnen können.

Ihre Vorteile

Durch die digitale Abbildung verringert sich der Arbeitsaufwand deutlich, sodass Kosten eingespart werden können.

Ein weiterer Vorteil ist die Möglichkeit zur besseren Verkaufspreis-Kalkulation Ihrer Produkte. Wenn Sie beispielsweise eine bestimmte Menge von einem Produkt kaufen, weil Sie dadruch einen Bonus vom Lieferanten erhalten, können Sie das Produkt selbst günstiger anbieten und erhalten somit einen Wettbewerbsvorteil.

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Ihr Nutzen

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Anhand einer Live-Demo zeigen wir Ihnen, wie das Tool in der Praxis arbeitet

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Weitere Informationen

Als IT-Beratungsunternehmen haben wir ein umfangreiches Fachwissen über SAP-Anwendungen und IT-Trends. Im Folgenden habe ich Ihnen weitere spannende Beiträge zum Thema zusammengestellt:

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Transfer Manager functionality in Settlement Management

2022-01-20T05:17:12+01:00

As we move forward switching from the ECC world to S/4HANA, our paths will be cutting off with settlement management more and more. In this article, I'll give a quick snapshot of Transfer Manager functionality in Settlement Management from a condition contract management (the replacement functionality for Rebate Management in ECC and more) perspective.

Transfer Manager is a convenient functionality where you can update data in certain fields of the settlement document from available fields without the need for coding in a BADI. Transfer Rules copy the data from the source structure field to the target structure field you would like to modify instead of coding this inside the settlement management BADI's. You can think of it like the copy control between SD documents, but instead of the routines in the copy control, we have already defined events, data structures and their fields that can be used to transfer data from one structure field to another.

Transfer Manager can be found in:

SPRO > Logistics General > Settlement Management > Settlement Documents > Specify Settings for Transfer Manager

If you look at the IMG activity documentation, you'll find a detailed list of events being called during different phases of the settlement document posting. It also gives the BADI you can use alternatively instead of using the Transfer Manager.

When you execute this menu item, system will pop-up a window with three different options.

Define Transfer Groups is where the configuration is mostly done. The second and third items are used for linking the Transfer Group to the Settlement Document Type (either via Settlement Doc Type or via Event). Here is what the first item looks like when you double click on it:

There is no configuration where you can define any Transfer Events, they are hardcoded.

Under every event, you can define Transfer Groups. These Transfer Groups are assigned to the Settlement Document type and form the link between the document type and transfer rule. If you need your transfer rule to work for some settlement document types and not all, this is where you make that differentiation.

As an example, let’s take a look at event 78 – Accounting Accruals Line Billing Doc. This event has four Transfer Groups, 0C01, 0P01, 0R01 and 0S01.

If you select 0S01 and check the rules under it, here is how it looks like:

Also, you can select the line and go into its details as below

The transfer rule is assigning the condition contract number in the source structure (WCB_CC_KEY-NUM) to the Assignment number in the accounting document of the settlement document (ACCIT-ZUONR) for all settlement documents with 0S01 transfer group assigned to it .

Settlement Management – Transfer Manager and Split Criteria for Settlement

2022-03-07T18:16:01+01:00

1. Overview & Business Case
2. System Used
3. Perquisites
4. Configuration
4.1. Pricing
4.2. Transfer Manager
4.3. Split Criteria for Settlement Document
5. Demo Video
6. Conclusion

1. Overview & Business Case

I recently encountered a business case in settlement management, and I would like to share it with you.

Our client had a Sales Rebate Scenario, where there is a main customer and there are several sub-customers underneath him, these sub-customers can reach up to 100 customers. The main customer gets a rebate for his business volume and another rebate for each of the sub-customers’ business volume when they buy materials that belong to a certain material group. These discounts vary from one sub-customer to another, the below example can be used for more clarification.

Payer	Rebate Amount	Business Volume to be considered	Rebate Recipient
Main Customer	(500) $ Per 1 Piece (for Material Group A)	Main Customer	Main Customer
Sub-Customer1	(350) $ Per 1 Piece (for Material Group B)	Sub-Customer1	Main Customer
Sub-Customer2	(150) $ Per 1 Piece (for Material Group B)	Sub-Customer2	Main Customer

2. System Used

S/4 Hana on Premise Demo Server, Release 2021.

3. Perquisites

Understanding of how S4Hana Sales Rebate Management works and its required set up, as this blog focuses more on the workaround used to achieve the business requirement.
If you want to know more about the delivered configuration and process description, you can check the below SAP Notes which provide an excellent guide.

2815535 - FAQ: Condition Contract Management by Settlement Management in SAP S/4HANA.

2535889 - CCM - Description of delivered configuration.

2481672 - Condition Contract Management - Useful Documents.

2564353 - Condition Contract Management: Product Overview Documents.

4. Configuration

4.1 Pricing

Create a new condition table

Note that the customer used is Customer Hierarchy (HEINR).

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management > Basic Settings > Pricing > Sales (SD) > Define Condition Tables > Create Condition Tables

Condition Table

Create a new access sequence

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management > Basic Settings > Pricing > Sales (SD) > Define Access Sequences

Access Sequence

Access Sequence - Field Catalogue

Create a new condition type
Note that (ZRE1) is a copy of standard Condition type (RES1)

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

Condition Type

Assign the condition type to the pricing procedure used for Rebate and Rebate Accrual, and follow the rest of the standard set up to complete the configuration.

4.2 Transfer Manager

We want to copy the data from the source Field (CUSTOMER) in the source structure table (KOMLFP) to the target field (HIENR04) in the structure table (KOMK). This will make sure that the condition record maintained in the condition contract and the customers with which the sales were achieved will be transferred properly to the settlement document and the header pricing.

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management > Settlement Documents > Specify Settings for Transfer Manager > Define Transfer Groups.

Choose Transfer Event (21-Fill Pricing Header Customer) and create transfer group (0S01-Sales Rebate) and enter the below entries as indicated in the screenshot.

Transfer Event

Transfer Group

Assign Transfer Group to settlement document type.

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management > Settlement Documents > Specify Settings for Transfer Manager > Define Transfer Groups > Assign Transfer Groups to Settlement Document Type (via Event)

Transfer Group Assignment

For more information on transfer manager check this blog created by Serkan Ozel

https://blogs.sap.com/2022/01/20/transfer-manager-functionality-in-settlement-management/

4.3 Split Criteria for Settlement Document

I wanted to create a separate settlement item for each customer (Main and Sub-Customer) to track their business volume and the specific discount applied, all of these settlement items will be included in one settlement document (Credit Memo) and for one contract recipient (Main Customer).

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management >Condition Contract Management > Condition Contract Settlement > Define and Configure Profiles for Business Volume Determination.

Profile for Business Volume

Transaction	SPRO
Path	SPRO > Logistics – General > Settlement Management >Condition Contract Management > Condition Contract Settlement > Specify Settlement Settings for Condition Contract Types

Assign Business Volume Profile to Condition Contract

5. Demo Video

Watch the following short video for the Condition Contract's creation and settlement on Fiori for the above-mentioned business scenario.

6. Conclusion

This is how I tried to meet the customer requirement by utilizing Transfer Manager and Split Criteria for Settlement, I would be happy to read your thoughts and comments, and if there are better ways to fulfill the requirement, please leave it in the comment section below.

Many Thanks!

Condition Contract Management - Sales Commission for External Sales Agent

2022-06-12T15:03:56+02:00

Table of Contents

1. Overview & Business Case

2. System Used

3. Perquisites

4. Configuration
4.1 Condition Contract Pricing
4.2 Condition Contract Maintenance
4.3 Condition Contract Settlement

5. Additional Master Data Related Configuration

6. Master Data

7. Demo Video

8. Conclusion

1. Overview & Business Case

I encountered several business scenarios regarding sales commission where the client used a fully customized solution without utilizing SAP Standard Sales Commission using Condition Contract Management, and its extended functionalities. I would like to share one of the business scenarios and how it can be actualized in the system.

The Commission Policy goes as follows:

Business volume selection criteria can be based on (Country of origin, Commission Group, Material, Material Type, Material Group, Country)

The commission is based on the Billing Documents that have been paid (cleared).

Example of commission policy: If country of origin is (Spain), Commission Group is (Red) and the Selling Price of the Product after discount is between (100:150) $, then commission rate is (2$).

Commission Rate can be Value (Commission=Rate * Quantity) or Percentage (Commission= Rate % * Net value of Billing Documents excluding taxes).

There is a minimum limit for each employee.

The settlement is done quarterly (The sales employee takes only a 75% of his/her deserved commission) and yearly (If the sales employee achieves his/her yearly target then they take the remaining percentage (25%) of their deserved commission)

2. System Used

S/4 Hana on Premise Demo Server, Release 2021.

3. Perquisites

Understanding of how S4Hana Settlement Management works and its required set up is a plus, as SAP Sales Commission Configuration Steps are quite similar to Sales Rebate.

If you want to know more about the delivered configuration and process description, you can check the below SAP Note which provides an excellent guide.

2535889 - CCM - Description of delivered configuration

4. Configuration

4.1. Condition Contract Pricing

4.1.1 Change Field Catalog

Transaction	SPRO
Path	Logistics – General>Settlement Management >Basic Settings>Pricing >Sales (SD) >Define Condition Tables > Change Field Catalog

Since the field (HERKL, Country of Origin) is not available in the list, we need to add it to the field catalog first before using it in the condition table.

4.1.2 Create Condition Tables

Condition Table(971) has a combination of Condition Contract Number, Country of Origin for the material and Commission Group.

Condition Table(973) has a combination of Condition Contract and Volume Rebate Group( this field will be used to represent Settlement Dates, e.g., Partial Settlement Date).

Transaction	SPRO
Path	Logistics – General>Settlement Management >Basic Settings>Pricing >Sales (SD) >Define Condition Tables > Create Condition Tables

Create Condition Table 971

Create Condition Table 973

4.1.3 Create Access Sequence

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

Create Access Sequence

4.1.4 Create Condition Type

Transaction	SPRO
Path	Logistics – General>Settlement Management >Basic Settings>Pricing >Sales (SD) >Define Conditions Type> Set Pricing Condition Types

Condition Type( ZRC1) is a copy of standard condition type( RCS1) but the group condition field is deselected and group condition routine is removed, the reason for doing this is that one of the requirements is to calculate the selling price after discount for each material, please bear in mind that this selling price might differ in every billing document considered relevant for the condition contract, this means that every item in these billing documents needs to be considered separately and not as a group.

In addition to that, we need to use a custom scale routine( 901), the routine calculates the selling price of the material.Selling Price of the Material = Net Value(Condition Value of ZCBV) / Quantity of the line item.

Condition Type: ZRC1- Commission

Cont. Condition Type: ZRC1-Commission

Condition Type( ZCJ1) is a copy of standard condition type( RCJ1) but a Scale Routine is assigned to it, to make the scale base value read the amount stored in( Subtotal 7, KOMP-BONB), this Routine is a copy of Standard SAP Routine ( 2, CCS Total BusVolume) with just replacing KZWI5 with BONB.

This condition type represents the 25% discount that will be deducted from the deserved commission that the sales employee should receive quarterly until the final settlement is done.

Condition Type: ZCJ1- Commission Weight

Cont. Condition Type: ZCJ1- Commission Weight

Condition Type( ZCJ0) is a copy of condition type( ZCJ1).
This condition type represents the minimum limit that the sales employee should achieve, otherwise he will not receive any commission.

Condition Types( ZCBV, ZRC2) are copies of standard condition types( RCBV, RCS2) respectively, there are no changes done to these standard condition types.

4.1.5 Specify CC-Relevance for Condition Types

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

Since we have taken copies from Standard Condition Types, the the CC relevance is already maintained.

4.1.6 Define Pricing Procedures

Transaction	SPRO
Path	Logistics – General>Settlement Management >Basic Settings>Pricing >Sales (SD) >Define Pricing Procedures

Pricing Procedure(ZA1012) is copy of standard Pricing Procedure(A10012) with replacing the standard condition types with their respective copy.

Note that we need to assign "Subtotal 7" to the Condition Type( ZCBV) in the commission pricing procedure.

Pricing Procedure

Cont. Pricing Procedure

4.1.7 Define Condition Type Groups

Transaction	SPRO
Path	Logistics - General - Settlement Management - Condition Contract Management - Condition Contract Conditions - Sales - Define Condition Type Groups

Condition Type Group: ZC01

4.1.8 Assign Condition Type Groups

Transaction	SPRO
Path	Logistics - General - Settlement Management - Condition Contract Management - Condition Contract Conditions - Sales - Assign Condition Type Groups

Assign the condition types to the desired maintenance levels (Condition Tables).

You can assign different colors to the maintenance levels, this makes it easier to distinguish between the various conditions used by the end user.

Condition Type Group Assignment

Cont. Condition Type Group Assignment

4.1.9 Specify Settings for Transfer Manger

Transaction	SPRO
Path	Logistics - General - Settlement Management - Settlement Documents - Specify Settings for Transfer Manager

In Transfer Event (22), we create a new Transfer Rule (3) to transfer the value in the field Settlement Date Type( KOMLFK - SETTL_DATE_TYPE) to the field Volume Rebate Group( KOMP-BONUS).

This will guarantee that the condition record maintained for Condition Type(ZCJ1) and Condition Table (973) is picked up correctly.

We are doing this to make sure that the 25% discount will always be applicable in case of partial settlement.

Transfer Event: 22 - Fill Pricing Item Supplier

4.2.1 Define Condition Contract Type

Transaction	SPRO
Path	Logistics - General - Settlement Management - Condition Contract Management - Condition Contract Maintenance - Define Condition Contract Types

Since the commission is based on the billing documents that have been cleared, we will use a copy of standard condition contract type( 0CS4- Commission External: Bill Doc Paid,2step).

The contract type is two steps as we want to Park the settlement documents first and then do a collective run into a single document and release it to accounting.

Assign your newly created Condition Type Group to the Condition Contract Type.

Condition Contract Type: ZCS4

4.2.2 Define and Configure Sets of Field Combinations

Transaction	SPRO
Path	Logistics – General - Settlement Management - Condition Contract Management - Condition Contract Settlement - Define and Configure Sets of Field Combinations

Create Field Combination (ZCNO) and assign the field HERKL to it.

4.2.3 Define and Configure Field Combinations for Business
Volume Selection

Transaction	SPRO
Path	Logistics – General - Settlement Management - Condition Contract Management - Condition Contract Settlement - Define and Configure Field Combinations for Business Volume Selection

ZC01 is a copy of (0C01 Commission Settlement - External).

Assign Field Combination (ZCNO Country of Origin) to the set of field combination.

Set of Field Combination Assignment

4.2.4 Define and Configure Profiles for Business Volume
Determination

Transaction	SPRO
Path	Logistics – General - Settlement Management - Condition Contract Management - Condition Contract Settlement - Define and Configure Profiles for Business Volume Determination

ZCS2 (Commission External: Billing Document Paid) is a copy of standard Profile (0CS2).

Under Amount Fields: Assign the business volume condition type ( ZCBV) to the amount fields from business volume data.

Under Split Criteria for Settlement: Make sure that the Usage Control for the following fields( LFTYPV - Document Category of Source Document, VBELN - Billing Document, POSNR - Billing Item) is Always Used - Not Set Via Process Variant.

This way we will have a settlement split at the item level for every Billing Document and its Line Items, this makes it possible to calculate the Selling Price for every item, using the special scale routine assigned to pricing condition type( ZRC1- Commission).

Under Additional Business Volume Tables: With the help of an ABAP consultant, create a copy of the standard CDS View(VWB2_VBRKVBRP_9), add an Inner Join with MARC-HERKLE to add the country of origin to this view.

Since we added country of origin field which is not originally supported in the condition contract, we also need to follow the instructions in this SAP Note:2366128.

4.3 Condition Contract Settlement

4.3.1 Define Document Schema Groups for Settlement
Document Types

Transaction	SPRO
Path	Logistics - General - Settlement Management - Basic Settings - Pricing - Define Document Schema Groups for Settlement Document Types

Document Schema Group

4.3.2 Specify Pricing Procedure Determination

Transaction	SPRO
Path	Logistics - General - Settlement Management - Basic Settings - Pricing - Specify Pricing Procedure Determination

Pricing Procedure Determination

4.3.3 Define Settlement Document Types

Transaction	SPRO
Path	Logistics - General - Settlement Management - Settlement Documents - Settlement Document Types - All Document Types

These are copies of standard Settlement Document Types in this respective order(0C21,0C23,0C91,0C93).

Maintain the Document Schema Group and the Reversal Document Types.

Settlement Document Type - ZC21

4.3.4 Allowed Combinations Settlement Process Type /
Settlement Document Type

Transaction	SPRO
Path	Logistics - General - Settlement Management - Settlement Process - Allowed Combinations Settlement Process Type / Settlement Document Type

4.3.5 Specify Copy Control

Transaction	SPRO
Path	Logistics - General - Settlement Management - Basic Settings - Specify Copy Control

Maintain Copy Control between the Commission Settlement Collection Type with both Commission Parked and reversal.

Copy Control Between Settlement Documents

4.3.6 Specify Settlement Settings for Condition Contract
Types

Transaction	SPRO
Path	Logistics - General - Settlement Management - Condition Contract Management - Condition Contract Settlement - Specify Settlement Settings for Condition Contract Types

Make sure the fields highlighted are maintained accordingly.

The Partial settlement Type is " Separate" in order to settle every partial settlement independently without taking the previous partial settlement into consideration.

Settlement Settings for Condition Contract

4.3.7 Assign G/L Accounts

Transaction	SPRO
Path	Logistics - General - Settlement Management - Basic Settings - Account Determination - Revenue Account Determination (SD) - Assign G/L Accounts

Account Determination

5. Additional Master Data Related Configuration

Volume Rebate Groups to represent Settlement Date Types.

Transaction	SPRO
Path	Sales and Distribution - Billing- Rebate Processing - Rebate Agreements - Define Material Rebate Groups

Settlement Dates

Commission Groups

Transaction	SPRO
Path	Logistics-General - Material Master - Settings For Key Fields - Data Relevant to Sales and Distribution - Define Commission Groups

Commission Groups

6. Master Data

Material Master

Material Master-Commission Group

Material Master-Country of Origin

The sales employee needs to be created as a vendor as well, and assigned as a Partner Function(ES - External Sales) in the sales order and the subsequent billing documents.
7. Demo Video

8. Conclusion

This is the standard configuration of Sales Commission using Condition Contract Management with some extended features, I truly hope this blog can be useful for some of you. I would be happy to read your thoughts and comments, and if there are better ways to fulfill the requirement, please leave it in the comment section below.

TM Transportation Management (Raw Material PO with capitalizable cost + Integration with Material Ledger CCS) - ML Custo

2022-07-20T19:48:15+02:00

Hi Friends!

This is the continuation of a blog I wrote some time ago related to Transportation Management and its integration with Material Ledger - Cost component split.

There is the link to the original blog: Tm-raw-material-material-ledger-ccs

If you noticed, this is my new SDN account 😃

In resume, this old blog show:

a purchasing flow of a raw material.

Transportation costs added with TM module

In what way this could be reflected in the cost component split CCS in the material ledger.

The previous blog covered the end to end process, that includes: the creation of a freight unit, then the freight order, post the Service entry Sheet SES to the accountancy and finally update the material cost and reflect in the cost component split of the material.

A lot of people asked me questions here and there about this topic, in particular "How to map a CCS element in Material ledger posting from TM?"

The short response is: mostly in the same way as you do in MM or LE-TRA. Here in this blog i'll put the details to keep in mind when you build this scenario in your system. Let's start!

1: You must first identify the condition that will be used on Settlement Management to post the freight cost!. I use the standard condition WTF1 in TM to post the Invoice on my example. Important to consider, we are talking about the Settlement Management condition, not the service entry sheet condition.

>>> The next screen is a new example i just build, here you see the condition WF01, and the value of 90k COP. You can use transaction WLFLTM2 - Overview Freight Cost Distribution to find the settlement document.

In the Pricing Elements, you can see the condition.

2: Then, you need to assign this condition to an Origin Group. As you know, originh groups are the link to a CCS element in product costing and material ledger. This is the KEY to the configuracion! Here is an example of the assignment of Origin group FR01 to TM condition WTF1, you do it for specific company codes. In the next example, i include our example CO01 company code, and PE01.By the way, I'm preparing a scenario of TM on intercompany sales that will consider this 2 company codes!!

3. In order to allocate to an element in the CCS, you need to know the GBB-VBR account of the material you are purchasing. The easiest way to do this is on table T030 that is the heart of the OBYC configuration.

4. In the CCS definition on OKTZ, insert the combination of the account and the origin group you assigned to the condition. In this example, CCS is R2, the chart of account is INT that comes in the best practices, the account, origin group, and the cost component element id.

That's is! Simple, short and direct.

The result is the following: When you post additive cost from TM, this cost will be reflected on the ML Kardex, in a specific element: in my Example, "Transportation". See the next screen.

Here you see the GR of the purchase order is under the category "Purchase Order", and the TM Settlement document is under the category Procurement, in the Colum "Transportation".

Wish this help you in your projects. Have you ever worked with TM? Please don't forget to comment if you like this post .

Arturo.

PS. Im preparing more HOW-TO guides related to the integration between Material Ledger and other modules.

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@ The images and the model be created by me, Arturo Senosain on a demo client. Material ZROH, CCS R2 (Ar-Two), and account &71xx where created by me to show the flow!

Flexible Workflows in Condition Contract Management

2022-09-12T19:12:07+02:00

In this blog post I will explain how to configure the Flexible workflows for the Condition Contracts and Settlement documents. The Pre-requisites for understanding this topic are that the SAP Consultants must have basic knowledge of Condition Contracts and Settlement documents in S4HANA.

You can configure and manage workflows for sales rebate processing such as the approval processes for condition contracts and settlement documents and the release of condition contracts for settlement.

Depending on the workflow you want to manage, you open the Manage Workflows for Condition Contracts app or the Manage Workflows for Settlement Documents app.

To create a new workflow, on the Manage Workflows screen, you make sure that the workflow you want to define is selected and then choose Add. You can then define the workflow steps, start conditions, and exception handling.

Manage Workflows for Condition Contracts

With this app, you can manage workflows related to condition contracts, such as condition contract release and condition contract release for settlement.

Manage Workflows for Settlement Documents

With this app, you can manage workflows related to settlement management documents, such as settlement document release.

Manage Workflows for Condition Contract -> Release Condition Contract

Manage Workflows for Condition Contract -> Settlement Release of Condition Contract

Manage Workflows for Settlement Documents -> Release of Settlement Document

In order to automate processes in Settlement Management with workflows, you first have to make settings in the Manage Teams and Responsibilities app.

Check the transaction SWE2 in SAP GUI if Workflow Linkage is setup

Create Contract Process Variants and assign to Contract Type

Before you can manage workflows for Settlement Management, you need to define condition contract process variants to which you assign contract types.

SPRO->Logistics General -> Settlement Management -> Condition Contract Management -> Condition Contract Maintenance -> Define Condition Contract Process Variants.

Activate Condition Contract Approval Process

SPRO->Logistics General -> Settlement Management -> Condition Contract Management -> Condition Contract Maintenance -> Define Condition Contract types

Disable Automatic Accounting document generation of Settlement document

SPRO->Logistics General -> Settlement Management -> Settlement Documents -> Document Types

Enable Condition contract Event Management

Define Status Groups

SPRO->Logistics General -> Settlement Management -> Settlement Process -> Define Status Groups with Application Statuses

Define Settlement Process Types

SPRO->Logistics General -> Settlement Management -> Settlement Process -> Define Settlement Process Types

Authorizations in Settlement Management

You can implement an authorization check that precedes the creation of accounting (FI) documents to ensure that only designated employees can release settlement management documents to Financial Accounting. This function allows you to meet security and legal requirements.

SPRO -> Logistics - General -> Settlement Management -> Basic Settings -> Specify Extended Scope of Settlement Management.

Authorisation Objects W_WBRK_ORG , W_WBRK_FKA & W_WBRK_STS check for Authorization of users during processing of Settlement Documents created out of Condition Contracts. The access for Release to Accounting and Reversal of Settlement document can be managed with these objects.

Authorisation Objects W_COCO & W_COCO_ORG check for Authorization of users during processing of Settlement Condition Contracts. The access to Release condition Contracts can be managed with these objects.

Once above mentioned setup is in place, you can now proceed to test the end to end workflow process as below.

Open the Condition Contract in change mode and Click on Request Approval and save document.

Release Condition contract from the Workflow approval box.

The condition Contract will now be seen as active.

Open the Condition Contract again in change mode, and Lock Settlement and save document.

Open the Condition Contract again in change mode, and request Settlement Approval and save document.

Release Condition contract for Settlement from the Workflow approval box.

Settle the condition Contract for Delta OR Partial or Final Scenario.

Request for settlement document release via workflow. Go to status and click on "Workflow release required", assign the status and save document.

Approve Settlement document from the Workflow approval box.

Release the settlement document to accounting.

Conclusion:

Flexible workflows can be used for approval processes for condition contracts and settlement documents.

Hope this blog post helps you in understanding how to setup Flexible workflow for Settlement management.

Thank you .

References and Further Reading:

SAP Help – Workflows for Sales Rebate Processing

2481672 – Condition Contract Management – Useful Documents

Authorisations in Settlement Management

Commission Settlement based on Incoming Payment Amounts

2022-10-20T18:48:39+02:00

Hi there, my name is Thiago Rigo (or just Rigo), I'm SAP S/4HANA OTC & Logistics Solution Architect and I want to share my experience about a requriement related to Commissions setltlement.

The main objective of this post is to share my findings and how I solved the requirement.

First of all, a little bit about commission process and SAP S/4HANA:

Commissioning is the process of paying a portion of the sold amount to the sales representative. The company agrees with the sales representative the rules for comission as well as the commission percentage and/or commission method.

In SAP S/4AHANA the solution for commissions is delivered in best practices trough scope item 2TT - Sales Commissions - External Sales Representative which uses Condition Contract Management (CCM) as solution.

If you are not familiar with the solution I recommend you check the scope item process before going foward this post.

Basically, there are two ways to calculate commission amount:

Based on billed amount.

Based on fully paid billed amount.

Here is about what I was challenged:

In the customer where I'm working for, the business explained that depending on the agreements with the external sales representative, the commission amount must be paid over partial payments, in this case Installment payments.

For example, a SD billing of 300 USD is created on Oct 10, with payment terms of 3 instalments of 100 USD as following:

100 USD on Oct 10;

100 USD on Nov 10;

100,USD on Dec 10.

According to example above and the standard option of commission based on fully paid billed amount, the commission amount would be relevant only after last payment on December.

Figure 1: Standard Process

The requirement is: once any payment is done, the respective paid amount (eg. 100 USD) should be relevant to be commissioned to external sales representative.

Figure 2: Business Requirement

How to achieve that?

The condition contract management solution has several configurations, in my investigation and researches, I learned that base amount relevant for commision payment is called “Business Volume” and basically there is a CDS View assigned to commission contract which is responsible for searching data which is base for the business volume.

The business volume profile is assigned to the condition contract type in in the following path:

IMG > Logistics – General > Settlement Management > Condition Contract Management > Condition Contract Settlement > Specify Settlement Settings for Condition Contract Types

Figure 3: Business Volume Profile assignment to Condition Contract Type

And the assignment of the business profile with the CDS View is available on the following SPRO path:

IMG > Logistics – General > Settlement Management > Condition Contract Management > Condition Contract Settlement > Define and Configure Profiles for Business Volume Determination

Figure 4: CDS View assignment to BV

Now checking the CDS view VWB2_VBRKVBRP_7 in tcode SE11 we found its respective data definition:

Figure 5: CDS View Data Definition

Here is the trick:

It’s possible to create your own CDS View selecting from V_WB2_VBRK_VBRP_5 and enhance selection with relevant fields to filter only incoming payment amounts by joining fields from CDS View I_OperationalAcctgDocItem or any other CDS view which has incoming payment data.

In this case I joined fields of Clearing Document and Clearing Date + Posting Key = '15' to find the correponding incoming payment amount.

Ask to your ABAP Developer for developing the CDS View according to business needs.

Figure 6: Creating custom CDS View

Once the new CDS view is done you can assign it to the business volume profile (as mentioned before).

From now, the company will be able settle commissions based on incoming payment amounts which could be partial or fully payments.

Considerations:

This solution may works for any other requirement which are not covered by the standard, the CDS View assignment can be changed to another one which solves the issue only by configuration or you may do a small development of new CDS View instead of developing a huge custom report or Fiori app to do the same commission amount calculation done by the standard apps.

Related topics:

External Commissions Settlement

2TT - Sales Commissions - External Sales Representative

I hope you enjoyed this topic and it could be opened your mind for different solutions keeping the SAP standard process.

Please let me know your feedback/questions in a comment.

Follow thiago_rigo for future posts.

Thanks!

S/4 HANA OUTPUT MANAGEMENT USING BRF+ For Settlement Document in 2022 On-Premises editions

2023-02-02T22:49:00+01:00

In this blog I am going to explain you configuration steps for new output management BRF+ settings for Condition contract settlement document.

S/4HANA delivers massive simplifications (customer adoption, data model, user experience, decision making, business processes, and models) and innovations. One of the areas of simplification is within the area of output management. The new output management encompasses the output across applications and is therefore found in the Cross Application section in the IMG. It is designed to be the successor for all frameworks (such as SD, FI Correspondence, CRM post processing).

With SAP S/4HANA a new Output Management approach is in place. By design, the new output management includes cloud qualities such as extensibility enablement, multi tenancy enablement and modification free configuration. Therefore, the complete configuration differs from the configuration that is used when output management is based on NACE.

The configuration is based on BRF+ which is accessible for Customers. In SAP S/4HANA, the target architecture is based on Adobe Document Server and Adobe Forms only. For the form determination rules (along with other output parameters) BRF+ functionality is used (in this sense in combination with the message determination).

Output Management is used to generate output for settlement management documents. When a settlement management document is generated, a request is made of Output Management to issue output for the document. The type of output to be issued for a settlement management document and the dispatch time are determined according to a set of customizable business rules.

For settlement management documents, the set of business rules is represented by application object types and output types. The settlement management document category of a settlement management document determines the application object type. One or more output types are defined for each category of a settlement management document requiring output. When the business rules are applied by Output Management, attributes obtained from the document are used to determine the type of output, the receiver of output, the channel used to issue the output, the printer settings (only applicable for output channel PRINT) and the form template used to generate a PDF document

Prerequisites:

Background RFC configuration has to be set up by the basis team. Refer Note - 2292571 (SAP S/4HANA output control - technical setup).

Adobe Document Server is available – ADS needs to be implemented to allow SAP to fetch PDF properties for rendering output form.

Transaction code KPRO has to be maintained with the help of Basis – KPRO allows to store PDF attachments on physical location.

bgRFC (Background Remote Functional Call)

Step 1): Start transaction SBGRFCCONF.

Step 2): Go to tab Define Supervisor Dest.

Choose

Choose

In the dialog box Create RFC Destination for Supervisor, enter a Destination

Mark the checkbox Create

Enter a Username and a

Save your

Check with help of SAP Note 1616303 if bgRFC is

Configuration steps:

Define Output types:

SPRO → Cross Application Components → Output Control → Define Output Types.

Assign Output Channels:

SPRO → Cross Application Components → Output Control → Assign Output Channels.

In this activity assign output channels to output type.

Output Parameter Determination in BRF+ (Transaction OPD)

During document output, the master form template is determined by comparing each defined rule with the current data provided by the application. If a parameter is not defined (no value entered), this parameter is considered as a match, and else, system determines the rule where all parameters match. Master form template is used corresponding to this rule.

1:Maintain the Output type

2:Maintain the Receiver

3:Maintain Printer Settings

4:Maintain Form template

5:Maintain Output Relevance

Output Processing:

Output determination is performed in document based on determination rules defined for Output type, receiver role, channel, form template and printer setting with status as ‘To be Output”. Default data can be changed in the document.

Settlement Document output is processed in Fiori App Change Settlement Document.

Output is successfully processed for the desired output channels.

Furthermore, there is a job scheduling app available: 'Schedule Job for Document Output - Settlement Management'. This tile is part of business catalog 'Sales - Settlement Management Document Output Scheduling'.

If the status of the output document remains in To-Be output not changing to completed/ Successful, Implement SAP not: 3075079 - Output Type has dispatch "Immediately" but it not processed.

Conclusion:

This functionality very useful where customer has access to the Output Management configuration based on BRF+.

Solution is applied in Output Management using BRF+ in new Green field S/4 HANA Implementation and also in Expert Level Mock Implementation in S/4 HANA Simple Logistics Trainings.

With SAP S/4HANA a new Output Management approach is in place. By design, the new output management includes cloud qualities such as extensibility enablement, multi tenancy enablement and modification free configuration. Therefore, the complete configuration differs from the configuration that is used when output management is based on NACE.

I would very much appreciate your comments and suggestions.

Thank you

Satwik Joshi

Freight Settlement Document posting to profitability segment

2023-09-29T01:19:08+02:00

Across industries, inbound freight costs get absorbed into Inventory and drive profitability decisions upon sales to external customers. While using the SAP TM module, freight settlement documents (as it's called by its acronym “FSD”) drive most of the accounting postings. A common requirement from all clients is to post the settlement to the SAP profitability analysis or margin analysis module. In S4, account-based profitability analysis (A-COPA) or margin analysis is one such profitability analysis tool. This blog will focus on the S4 margin analysis scenario only.

In the S4 embedded TM module, the freight settlement document will collect the charges from the freight order and create the service PO to post the carrier freight charges. Along with the service PO, the freight settlement will also post the confirmation of the service entry sheet (acronym “SES”) for the same service PO. There are various accounting treatments that can be adopted for this service entry sheet posting. I will be discussing a common approach for the service entry sheet posting in this blog. I will also be showing while pursuing this approach how we can make the system settings post to Account-based COPA or margin analysis.

High--level Process Flow for Inbound Freight has been using the Figure 1 diagram

Figure 1 High-level process flow

The above depicts a scenario for the transportation managed by a purchasing organization for external purchase. Based on this process flow, the purchase order (or this can easily be customizable in the TM (transportation management) module to use Inbound Delivery), creates the freight unit for material getting purchased. This freight unit will be converted to a freight order. In the freight order, the carrier will be assigned and all transportation charges will be calculated. The freight order will be settled to financial accounting and general ledger using the freight settlement document (acronym “FSD”).

This blog will focus on the system settings that would be necessary to make the freight settlement document post to account-based profitability analysis (acronym “A-COPA” or margin analysis in S4 HANA).

By S4 HANA embedded TM design, the freight settlement document that creates the service entry sheet can be posted to a profit and loss account using a cost center. However, based on the accounting method described in this blog, the business requires that the profitability segment be used instead and used in the subsequent document.

The accounting method proposed in the blog uses a “clearing account” in the service entry sheet posting.

Freight Settlement Document creates two documents, a service purchase order and a service entry sheet to confirm the service. The details of this mapping are part of the Transportation management setup. This blog will focus on accounting postings and the activation of margin analysis assignments.

Example: Purchase order from an external supplier will have a freight carrier, that would directly bill the purchasing organization. Let’s say the freight agreed is $100. As soon as the purchase order is dispatched, the freight unit will be generated. Upon confirmation from the freight carrier about the inbound shipment, a freight order will be created. Figure 2 and Figure 3 show proposed accounting postings that involve two balance sheet GL accounts but when the freight order is settled via the freight settlement document, the system will look for a cost object. This can be posted to a profitability segment. The profitability segment will later be used to post to the “cost distribution” document.

Figure 2: Debit Side posting to Freight Clearing (B/S) GL during Freight Settlement

Figure 3: Credit Side posting to GR/IR (B/S) GL

Following configuration changes will be required to achieve this posting. Under the settlement Transportation management à Settlement à Freight Settlement à Integration for Settlement Posting à Assign Purchasing Information Posting, assign a material group.

Follow the Purchasing à Material Master à Entry Aids for Items Without a Material Master to enter a default valuation class for the material group

Next using Materials Management à Valuation and Account Assignment à Account Determination without Wizard à Configure Automatic Postings, the Freight Clearing GL account can be mapped under GBB/VBR account key. This mapping will need to be updated for the valuation class mapped under the Purchasing setting mentioned above.

The offset of this Service Entry Sheet accounting will be the WRX Account Key.

Next, to handle the profitability Segment posting for the Freight Settlement Document will be made possible using a BADI.

/SCMTMS/SFIR_SES_ACC_ASSIGN

This BADI (Figure 4) has sample code delivered by standard SAP. Within this code, the Internal table “lt_sfir_charge_item’ would contain the charge elements that have been copied over from the Freight order. For each of these charge elements, the profitability segment can be activated using a simple profit center mapping. One way to derive this profit center would be to read the material plant view profit center using the MARC table.

BADI to activate the Margin Analysis profitability segment

TM Freight Actual Invoice Posting to price variance GL

2023-10-06T13:32:06+02:00

In S4 HANA embedded TM (Transportation Management), Freight and other related charges are accrued through the freight settlement Document (FSD). FSD will create and post a freight service PO (purchase order) and its corresponding service entry sheet confirmation (goods receipt). The freight charges can be accrued via this service entry sheet confirmation and later can be distributed to the product-level margin analysis module using the “cost distribution” posting. Once the actual freight invoice is received, the actual charges can be different than the amount estimated or planned for. In the standard TM module, this variance still stays under the GL account that is used for the service entry sheet. In any organization, the purchasing department would like to split and apply this variance to the products that are part of the original order. This blog will show a simple enhancement to purchase price variance accounting. for these actual freight invoices.

The following figures will show a proposal of the accounting entries accompanying the actual carrier freight Invoice. Let’s say the freight charges have been planned as $100 and upon receiving the actual freight invoice from the carrier, it was found to be $50 higher. Figure 1 shows that the $50 will be charged to a freight clearing GL account if this is the account that the freight settlement document uses. The offset of this posting will be to the Carrier payables (accounts payable sub-ledger GL).

Figure 1: Debit Side posting to Freight Clearing GL during cost distribution

Figure 2 shows the offset for the actual freight invoice variance

The next two figures show the debit (Figure 3) and credit side (Figure 4) of the cost distribution document that will be created while posting the Carrier Invoice. In the standard S4 system, the cost distributions by default are not activated for the “actual” carrier invoices. To solve this gap, a BADI (ERPTMS_IV_AT_POST_BADI) shown in Figure 5, should be activated. Once the enhancement is active in the system, during posting the Carrier AP Invoice, the system will call the cost distribution posting program again and will create a new additional cost distribution document. This document can be normally handled like any other cost distribution document using transaction code WLFLTM2 - Overview Freight Cost Distribution.

Figure 3: Debit Side posting to Expense (P/L) GL during cost distribution

Figure 4: Credit Side posting to Freight Clearing (B/S) GL during cost distribution

Figure 5: BADI to activate the cost distribution on the Freight Invoice

In conclusion, I would like to mention that once this BADI is activated, the incoming Invoice from the carrier will create an additional cost distribution document. While implementing this BADI, one can simply adopt the suggested code supplied by the system. By doing so, the price variance requirement around carrier invoices can be easily mapped to the other robust cost distribution functionality of the TM module. For additional requirements, this BADI or other cost distribution BADIs can be leveraged.

Comprehensive issues related to transactions WB2R_SV and WB2R_SC

2023-11-30T13:32:25+01:00

In the world of business, efficiency is key. But what happens when the tools you rely on become sources of frustration? That's where we step in. In this blog, we're diving into the nitty-gritty of two essential transactions, WB2R_SV and WB2R_SC. These may sound like a bunch of letters and numbers, but they play a crucial role in Supplier / Customer Contract Settlement. We won't bore you with complicated business jargon, but instead, we'll tackle the common issues and problems users face when working with these transactions.

List of Issues Aimed to Solve with this Blog

- Shortdump: DBSQL_DUPLICATE_KEY_ERROR
- Shortdump: EXPORT_TOO_MUCH_DATA
- Shortdump: CONVT_NO_NUMBER
- Shortdump: SAPSQL_PARSE_ERROR
- Shortdump: DBSQL_STMNT_TOO_LARGE
- Shortdump: TSV_TNEW_PAGE_ALLOC_FAILED
- Performance
- Error FF765 - Transaction key does not exist
- Error WAB205 - Cannot save; diff. attribute in &1 and altern. &2
- Error WAB208 - No reference information for reference document category &1 passed.
- Error WB2R111 - Internal error: Not all partial settlements could be distributed
- Error WS118 - Document &1 has status &2 and is complete.
- Field POSNR is wrong in tables WBRP and/or WB2_D_BVDETAIL

DBSQL_DUPLICATE_KEY_ERROR

Program SAPLWB2_REBATES_POST

Please review the content of article number 3394884.

EXPORT_TOO_MUCH_DATA

Please review the content of article number 3394978.

CONVT_NO_NUMBER

Make sure you have implemented the provided notes:

3051332

SAPSQL_PARSE_ERROR

Program CL_WB2_REBATE_SETTLEMENT

Please review the content of article number 3394962.

Program SAPLV61Z

Please review the content of article number 2682781.

DBSQL_STMNT_TOO_LARGE

Program CL_WB2_REBATE_SETTLEMENT======CP

Please review the content of article number 3403729.

TSV_TNEW_PAGE_ALLOC_FAILED

Please review the content of article number 3403770.

Performance

Please review the content of article number 3405529.

Error FF765

In the pricing schema used, check what is the tax condition type. Then review if an accounting key was maintained. If not maintained, the system cannot pass the data to accounting.

Also, read the article 2535889.

Error WAB205

The error is usually caused by missing "Document Schema Group" in table TMKV.

To fix it, follow the instructions described in article 2893326.

Error WB2R111

Please review the content of article number 3405475.

Error WS118

You received this error message because you executed the report in a check run. In this case, the system couldn't give a number for the settlement. Please execute the report in the live run to avoid this error message.

Field POSNR

Please review the content of article number 3405508.

Customizing Transfer Manager in Freight Cost Allocation in SAP TM.

2023-12-11T17:15:51+01:00

In some projects, FI colleagues required to have some values from the Sales Order, Purchaser Order, Deliveries to be available in the Settlement Document (ABD) and based on that will explain in this blog How To make it available.

As I mentioned early in the other Blog Freight Cost Allocation in SAP TM Integration with Financial area of SAP. | SAP Blogs, this part from TM use the solution “Settlement Management | SAP Help Portal”.

In the part of Settlement Management | SAP Help Portal exist one functionality called “Transfer Manager” tool is used in Settlement Management to manipulate the data of settlement management documents when certain business (transfer) events occur during the creation of new documents orthe change of existing documents.

To make an example, you need to have the “Customer Reference”, from the Sales Order in the Settlement Document (ABD)in the “Reference Document Number”.

Sales Order:

Settlement Document (ABD):

Customizing need:

Logistics General -- Settlement Documents -- Specify Settings for Transfer Manager - Define Transfer Groups

Create a Transfer Group and Transfer Rules:

As you can see above, we map the field from the Sales Order table VBAK-BSTNK into the Settlement table WZRE_S_HEADER_FIELDS – XBLNR

After created your transfer rule assigned it to the Assign Transfer Groups to Settlement Document Type (via Settle. Doc. Type)

The Standard Doc type for TM is 1600 - Cost Distribution – TM

With this setup you will transfer data from Sales Order, Purchase Order, (Delivery - Inbound and Outbound).

PO tables.

Delivery tables.

Also available using BRF+ Working with BRFplus Within Transfer Manager | SAP Help Portal

Download and upload it :

2809114 - Composite SAP Note: BRFPlus for Transfer Events - SAP for Me

3410593 - Use of BRFplus functions in the transfer manager - valid for S4CORE 108 - SAP for Me

You can use the following events to change data for the creation of settlement documents for freight costs from transportation management.

T1 Change data for creation from purchase order
T2 Change data for creation from sales order
T3 Change data for creation from delivery
Prerequisites

You have implemented the classes for source value determination and classes for copy requirements that you want to use in transfer rules.
In requirement and source value classes you sometimes have additional data available as source or target data. For example the internal table with all condition records as structure T_KOMV in event 6E (Change before update). Which additional data you have available you can check in the coding where the event is called. You can find this using the where-used-list for the relevant event in the constant structure GCS_EVENT in class CL_WLF_TRANSFER_MANAGER.
You have implemented BRFplus functions that you want to use in transfer rules.
Activities

1. Select the transfer event for which you want to define a transfer group with transfer rules.
2. Create a transfer group for the transfer event.
3. Create the transfer rules for the transfer group.
4. Assign the transfer group to the relevant settlement document types for the transfer event.
Standard Settings

Refer:

Settlement Management | SAP Help Portal

Transfer Manager | SAP Help Portal

2135627 - FAQ: Settings for Agency Business Document with reference to TM Freight Settlement Document - SAP for Me

2487531 - Posting Agency Business/Settlement Mangement documents to COPA scenarios - SAP for Me

2642502 - Settlement Document Posting - Error F5 727 (The maximum number of items for an FI document ('999') has been exceeded) - SAP for Me

2040354 - Error Occurs when Reversal or Cancelling of FSD in SAP ERP - SAP for Me

Hope this help you!

Regards

Rogerio Lima.

How to add a new field to Business Volume Selection Criteria?

2024-02-27T18:34:04.825000+01:00

When creating a condition contract, we select the sales criteria of that condition contract with the Business Volume Selection Criteria.

The standard Business Volume Selection Criteria in the system may not match the customer's needs.

In this case, we can create this need by adding new fields to the Business Volume Selection Criteria

SAP IMG (SPRO)

Logıstıcs- General> Settlement Management> Condition Contract Management> Condition Contract Settlement > Define and Configure Field Combinations for Business Volume Selection

In the meantime, we need to get a good customer analysis. Does the user need to add a new Business Volume Selection Criteria or add a new field to the existing Business Volume Selection Criteria?

We can add either way

If they want a new Business Volume Selection Criteria, we select new entries. If they want to add a new field to the existing Business Volume Selection Criteria, we create it by copying it from the existing one.

Suppose in our scenario we want to give the following options together

a field that is not in the billing type standard Business Volume Selection Criteria

there are others but not under one choice

Sales organization- Customer- Billing Type-Material Group

We can copy the sales organization or customer by selecting the line with the customer

We write the field names in the description by giving the appropriate number from the number sequence

Than press enter and click oke

It was created. Select the line and click the Field Assignment

Fields and click enter, you will get the following error

even if the billing type is a standard field, it gives an error because it has not been added before

If you want to add a Z* field, you can follow the same steps

Copy WB2_S_BVB_FIELDCAT and go to SE11 paste data type and click change

Find append structure

Double click ZZAPPEND and add FKART field and press enter-activated

Go back and we can see our field on chart

We came back to the customization field and when we said enter, it took the field and did not give an error and data was saved.

And Define and Configure Sets of Field Combinations

SAP IMG

Logıstıcs- General> Settlement Management> Condition Contract Management> Condition Contract Settlement > Define and Configure Sets of Field Combinations

Click new entries

Write Field comb. Number press enter and save

Go to transaction WCOCO for create a new Condition Contract and we can see new entries at Business Volume Selection Criteria

And we can give selection criteria

I would be happy to read your thoughts and comments and if there are better ways to fulfil the requirement, please leave them in the comment section below.

Thanks so much!

LSP Scenario in Transportation: Freight Settlement / Forwarding Settlement Document Posting errors

2024-04-03T10:47:20.608000+02:00

Some of the errors found during the setup & respective solutions:

1. Cannot apply distribution level; cannot distribute costs

Forwarding order is completely independent and does not refer to an order-based transportation requirement (OTR) or delivery-based transportation requirement (DTR). hen you calculate charges, the system cannot distribute costs because there are no order or delivery items in the freight order.

Uncheck the “enable cost determination” in the FSD type(see image below).

Change the “distribution level” setting to “Forwarding Order” in the SPRO>Define Cost Distribution profiles

2. Agreement not found for organizational unit TM_SORG1 and party 17186002

Make sure Soldto/Shipto Party is extended to the TM SalesArea in the BP transaction.

3. Accruals posting failed as posting period is closed

Check & close posting periods using MMPV & MMRV

4. Unable to determine tax country for the billing document in SAP TM

Maintain the country in the shipto/soldto address.

5. Sales area is not defined error

Maintain the default distribution channel & division in the SPRO> “Define General Settings for TM “

6. ‘Billing document creation failed’ during FWSD posting.

Under VOFM, use the appropriate copy routines in the copying requirements.

Finally, posted both the FSD & FWSD to the S4 core system.

I hope this is helpful to the TM consultants & I would like to receive any feedback or comment from you.

Thanks for reading.

_Amar_

SD (Sales and Distribution) MM (Materials Management) SAP S/4HANA Finance FIN Controlling

SAP Transportation Management SAP S/4HANA SAP Supply Chain Management SD Billing SAP Invoice and Goods Receipt Reconciliation MM Invoice Verification MM Purchasing LE (Logistics Execution)

Vendor Rebates - SAP S4HANA

2024-07-19T14:54:06.403000+02:00

A vendor rebate is a financial incentive, vendors offer to encourage buyers to purchase larger quantities or meet specific purchasing targets. The rebate process defines, monitor, and modifies purchasing rebate agreements flexibly based on supplier, product, and volume-based purchasing commitments.

The Purchasing Rebate Processing scope item in SAP concerns the subsequent settlement of rebate conditions agreed upon with a supplier. Here’s a breakdown of the process and key components involved:

Condition Contracts Management

- Rebate Agreements: Condition contracts are used to enter rebate agreements with suppliers. These contracts contain details about the agreed rebate conditions. In a condition contract, you specify organizational and process control parameters, business volume selection criteria, rebate conditions, and a settlement calendar.

Settlement Calendar

- The calendar includes dates for delta accrual, partial settlements, and final settlements. Delta Accruals is a procedure where accruals are not posted with transactional documents but are posted subsequently in a specific settlement run. During partial and final settlements, the rebate calculation is performed based on the business volume and rebate conditions specified in the contract. Settlement documents are created to claim the rebate payments from the supplier.

Data Sources for Business Volume Determination

- Supplier Invoices are generally used for amount-based rebate calculations. Material Documents are used for Goods receipt postings, usually applied for quantity or weight/volume-based rebate calculations.

In this article, we explore the two primary methods for settling condition contracts in the vendor rebate process within SAP S/4HANA, depending on the nature of the rebate agreement. When rebates are considered a cost reduction or gain from procurement activities, you perform a goods-related settlement as accounts payable, creating a credit memo with the supplier as the payer. This approach ensures that taxation is consistent with the taxation in the procurement process. Conversely, if the rebate agreement reflects a service rendered for the supplier, the settlement is performed as accounts receivable, generating an invoice for the supplier. Here, the taxation for the rebate amount is carried out in accordance with the service provided.

Additionally, there is a variant process concerning the transfer of settlement documents to accounting. Typically, settlement documents are created and immediately released to accounting. However, you can also employ a two-step condition contract to collect and post settlement documents from different condition contracts in a single journal entry to accounting. In this scenario, the reversal of accruals and customer revenues is not posted until the collective settlement document is created.

The Business Process diagram for Vendor Rebates is as below

Explain this with a real-world example let’s take the below retail business scenario

BestBuy Mart, a leading retail chain, negotiates a volume-based vendor rebate agreement with Crunchy Delights, a prominent snack food supplier. The agreement stipulates that if BestBuy Mart purchases over 50,000 units of a specific snack product within six months, they will receive a 5% rebate on the total purchase value exceeding 50,000 units.’

BestBuy Mart enters the rebate agreement details into SAP S/4HANA, specifying the product, time frame, and rebate percentage. Throughout the six months, BestBuy Mart places multiple purchase orders for the snack product, with SAP S/4HANA tracking all purchases linked to the rebate agreement. By the end of the six months, BestBuy Mart has purchased 60,000 units.

SAP S/4HANA calculates the rebate amount based on the 10,000 units exceeding the threshold, applying the 5% rebate rate to the total purchase value of these units. Subsequently, SAP S/4HANA generates a rebate credit memo for the calculated amount and processes the payment request to Crunchy Delights. BestBuy Mart utilizes SAP S/4HANA’s reporting tools to review rebate earnings and settlement details, ensuring transparency and accuracy in financial reporting.

In this article, we will discuss the Fiori applications used in the vendor rebate process in SAP S/4HANA.

Fiori app – “Monitor Supplier Condition Contracts”

Using this app we can Create new condition contracts, release condition contracts, and lock condition contracts for settlement. Also, users can monitor the life cycle of condition contracts and analyze relevant contract data from different perspectives.

Fiori App – "Display business volume – Condition Contracts"

In this application, using the Customer, Condition Contract, or Settlement Date can view the business volume data for the condition contracts

Fiori Application - "Settle Condition Contracts"

Using this app we can poste accruals according to the pricing conditions specified in the condition contract. Also to create Supplier credit memo (settlement document) and reverse the existing accruals we are using this application.

Fiori Application – "Collect Settlement Documents"

This application is use for Create Collective Documents from Final Settlement of the vendor rebates.

Using these applications you can precede the vendor rebates process in sap S4HANA starting from Condition contract creation, Release Supplier Condition Contract for Settlement, Check Business Volume, create partial and final settlements and approval and finally create the collect settlement documents.

This article aims to give a high-level understanding of vendor rebates and settlement in SAP S4HANA using Fiori applications. There are many pre-configurations and master data creation before this rebate process and in form next article I hope to discuss those with a complete overview. Please do share your comments. It will be very supportive of the next articles.

Rebates (Condition Contracts) Partial Settlements with individual business volume

2025-01-07T18:09:06.630000+01:00

Partial Settlement refers to the process of making a partial payment or credit settlement against a rebate agreement. This typically occurs when a customer or business partner earns a rebate, but the full amount due under the agreement isn't paid in one go. Instead, a portion of the rebate is settled, leaving the remainder for future settlement. As an example, an annual rebate agreement with partial settlement every quarter.

Let us under how the partial settlement of rebate condition contract works in S4 with an example:

There is an agreement with the customer stipulating that they will receive a 5% rebate on their business volume, provided they make purchases totaling $100,000.

	Quarterly Sales	Rebate amount
Q1	$50,000	0
Q2	$75,000	$6,250
Q3	$100,000	$5,000
Q4	$75,000	$3,750

Let’s walk through how the rebate amount is calculated each quarter. In Q1, the total sales amount is $50,000, which does not meet the required business volume of $100,000. Therefore, the rebate for Q1 is zero. By the end of Q2, the cumulative business volume reaches $125,000 (Q1: $50,000 + Q2: $75,000). The rebate is calculated on the total of $125,000, resulting in a rebate of $6,250. By the end of Q3, the total business volume increases to $225,000. A 5% rebate on this amount equals $11,250. However, since $6,250 has already been settled in Q2, this amount is deducted from the $11,250, leaving a Q3 settlement amount of $5,000.

This process follows the standard functionality in the CCM rebate agreements.

Individual Partial Settlement:

Let's examine how individual partial settlements operate. Business volumes are not cumulative; instead, each quarter's business volume is assessed independently. According to the annual agreement, the customer must purchase products worth $100,000 within a quarter to qualify for the rebate for that specific quarter

	Quarterly Sales	Rebate amount
Q1	$50,000	0
Q2	$75,000	0
Q3	$100,000	$5,000
Q4	$75,000	0

Configuration required:

Menu path: WLFA -> Condition Contract Management -> Condition Contract Settlement -> Specify Settlement Settings for Condition Contract Types

In the “Settlement Dates” section, for Partial settlement type select 2-Separate.

Master Royalties and Commissions Settlements with SAP Cloud ERP & SAP Subscription Billing

2025-08-12T14:46:34.443000+02:00

Managing and charging services effectively in a subscription-based business model is crucial for sustained revenue and customer satisfaction. SAP Subscription Billing supports you in handling these aspects by offering intuitive solutions to manage your subscription business efficiently. When integrated with SAP S/4HANA Cloud Public Edition, it empowers organizations to streamline their financial processes. This integration also facilitates efficient and transparent management of complex subsequent settlement processes, such as royalties, internal, and external commissions in an automated manner. Understanding this synergy can transform how your business handles subscription services and the associated settlements, leading to optimized operations and improved financial outcomes.

Exploring Different Settlement Options
1. Intercompany Royalties:
This settlement option is designed to manage royalties between different entities within the same corporate structure. When one company in a corporate group uses a product or service owned by another entity, intercompany royalties compensate the owning entity. This process ensures precise and compliant revenue distribution within corporate groups, enhancing financial accuracy and facilitating intercompany reconciliation.
2. External Royalties:
Businesses often need to settle royalties with external entities or licensors who own certain intellectual properties or products that are included in the businesses' own offerings to their customers. These royalties are crucial for fulfilling legal obligations to licensors and securing continuous usage rights for commercially lucrative intellectual properties.
3. Internal Commissions:
Motivating sales teams through well-structured commission plans can directly impact the success of any business. Internal commissions are calculated based on sales performance and are pivotal in driving sales personnel to achieve their targets. This settlement process ensures that commissions are distributed fairly, based on clear conditions set within the agreement.
4. External Commissions:
Similar to internal commissions but involving external partners, such as sales agents that help drive sales from outside the company. This commission model must ensure that these external partners are rewarded appropriately for their contributions to driving the company’s revenue, thereby fostering a healthy and profitable external partnership.

Unlocking Robust Settlement Management Capabilities
The integration of SAP Subscription Billing with SAP S/4HANA Cloud Public Edition enables organizations to unlock advanced tools for managing settlements efficiently. Through the integration scenario Subscription Management with Sales Billing (scope item 57Z), your business can access essential subsequent processes such as:

Royalties Settlement for Sales (55I): This scope item facilitates the comprehensive management of intercompany and external royalty settlements. Learn more about Royalties Settlement for Sales.
Sales Commissions - External Sales Representative (2TT): Seamlessly handles the settlements of external sales commissions . This scope item supports the management agreements with external sales agents, ensuring accurate and timely settlements aligned with business goals. Explore Sales Commissions for External Representatives.
Internal Commissions Settlement for Sales (3TD): Supports internal settlements of sales commissions, enabling businesses to manage employee incentives effectively and promote a performance-driven sales environment. More on Internal Commissions Settlement for Sales.

Condition contract, a central object in Settlement Management, manages all necessary conditions required for settlement, fostering an efficient and transparent process. By leveraging the above mentioned scope items, companies can ensure that their settlement processes are not only comprehensive but are also finely tuned to their specific business requirements. To accommodate variations from the default settlement process, each scope item comes with process variants. See the respective test scripts for details via the links above.

Conclusion
Integrating SAP Subscription Billing with SAP S/4HANA Cloud Public Edition amplifies your operational efficiency. It streamlines the settlement aspect of your business. With robust features and seamless integration, the solution ensures your financial settlement processes are automated, making your operations effortlessly smooth and efficient.

Related Information
Explore deeper into each specific settlement process:

Co-Author: @shweta_kesarwani.

Condition Contract: Process Customer Rebate payment to an alternate Customer or Vendor

2025-12-26T23:20:51.050000+01:00

Business Requirement:

Multiple customers are tagged to a Buying group. Rebate Condition Contract should allow to make the rebate payment buying group or any of the individual customers or to an external vendor. Buying group customer will inform the client to which customer or the vendor to make the rebate amount.

System set-up needed:

Assign settlement process type “0S35 - Sales Rebate Manual from Customer AccPay” and settlement document type “0S31 – Sales Rebate AccPay Manual” to the Condition Contract type 0S01 – Sales Rebate in "Specify settlement settings for Condition Contract type".

Process Rebate Payment:

Tcode: WB2R_DOC_ENTRY

Enter the Condition Contract number, Settlement date, Settlement date type as “1 Partial Settlement” and then click on “Create”

A pop-up will come to select the Settlement Process Type

Select the settlement process type as ZS30 to make rebate payment to customer. To make payment to vendor, select the settlement process type as ZS35.

When you select Settlement process type as ZS30, below pop-up appears.

Rebate recipient from the condition contract defaults into the Bill-to party field. This can be changed to desired customer to whom the rebate must be paid.

To make the Rebate payment to the vendor, select the Settlement process as ZS35.

Enter the vendor number to whom the customer rebate amount has be paid.

This way we can process rebate amount to an alternate customer or a vendor.