Settlement Management in S/4 HANA
What is settlement Management process:-
Settlement Management is a comprehensive and flexible SAP S/4HANA solution that supports
the settlement of rebates and external commissions, the processing of employee commissions
and incentives as well as the settlement of royalties.
Prerequisites
• Understanding of Rebate Management in ECC.
• Understanding of Condition Contracts in SAP S/4HANA.
• Understanding of basic SD terms Condition Type, Condition table, access sequence,
pricing procedure etc.
Steps
This blog will be divided into the following sections
• Configure Pricing & Conditions
o Condition tables
o Access Sequence
o Condition Types
o Condition Contract Relevance for Condition Types
o Condition Type Groups and assignment of Condition types
o Pricing Procedure
o Document Schema group for Settlement Document Types
o Pricing procedure determination
• Configure Condition Contract Maintenance
o Number range
o Condition contract types
• Settlement Document types
• Settlement Process
o Condition Contract
o Sales Order
o Settlement
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Steps explained
Configure Pricing & Conditions
Condition tables
The condition table maintenance can be accessed at
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Maintain Condition Tables
SAP provides condition table 4AB, 163 etc. by default.
The condition tables specifically defined for Condition Contract Management contain the condition
contract number as key field. Let’s create 2 customer specific condition tables 510 and 511 which are
copy of 4AB and 163 respectively to understand with an example. This can be done at above mentioned
link using the ‘Create’ option. This will generate A510 and A511 tables in the backend.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
I am doing this the custom way to explain the basic customizing steps from scratch so that we don’t
scratch our heads later.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Access Sequence
The access sequence maintenance can be accessed at
• Sales
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> Define Access
Sequences->Maintain Access Sequences
• Purchase
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Materials Management
(MM) -> Define Access Sequences -> Maintain Access Sequences
SAP provides access sequences like COMP etc. by default.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Let’s create a customer specific access sequence ZCMP which is a copy of COMP for both Sales and
purchasing.
Let’s assign our condition tables 510 and 511 to the accesses as shown below
Condition Types
The condition type maintenance can be accessed at
• Sales
Logistics – General -> Settlement Management-> Basic Settings-> Pricing-> Sales (SD)-> Define
Condition Types
SAP provides various condition types like REBA.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Let’s create a customer specific condition types ZREB which is a copy of REBA.
The access sequence ZCMP (with 510 and 511) we created earlier, will be assigned to this condition type
ZREB.
• Purchasing
Logistics – General-> Settlement Management-> Basic Settings-> Pricing-> Materials Management
(MM)® Define Condition Types
SAP provides various condition types like REBA, REBT.
Let’s create a customer specific condition types ZRBA which is a copy of REBA and ZRBT which is a copy
of REBT.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
The access sequence ZCMP (with 510 and 511) we created earlier, will be assigned to this condition type
ZRBA and ZRBT.
Condition Contract Relevance for Condition Types
• Sales
Logistics – General-> Settlement Management -> Condition Contract Management -> Condition Contract
Conditions -> Sales -> Specify CC-Relevance and Copy Control for Condition Types
Please set the checkbox for Condition Contract-Relevant
• Purchasing
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Condition Type Groups and assignment of Condition types
• Sales
The condition type group maintenance can be accessed at
Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract
Conditions -> Sales -> Define Condition Type Groups
You assign a condition type group to a condition contract type. Let’s create a customer condition type
group ZBON which is a copy of group SBON.
Now you have to assign the condition types ZREB created earlier to this condition type group. You may
access the path at
Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract
Conditions -> Sales -> Assign Condition Types to Condition Type Groups
You may copy SBON and create ZBON with the following values
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
In condition type group, you assign condition type ZREB for maintaining a rebate condition in the
condition contract. This condition will be picked from the condition contract and will be populated in
the sales order pricing.
• Purchasing
Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract
Conditions -> Purchasing -> Define Condition Type Groups
Let’s create a customer condition type group ZBBI which is a copy of group SBBI.
In condition type group, you assign condition type ZRBT and ZRBA for maintaining a rebate condition in
the condition contract.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Pricing Procedure
• Sales
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> Define Pricing
Procedures
Please note I have changed the standard pricing procedure RVAA01 by replacing REBA with ZREB for
testing this solution. You can create your own Pricing procedures. The pricing procedure will be used in
the sales order.
• Purchasing
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Materials Management
(MM) -> Define Pricing Procedures
There is a pricing procedure BSETTL available in SAP.
Let’s try to copy it into a custom pricing procedure ZBSTTL which has our rebate condition ZRBT &
ZRBA
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Document Schema group for Settlement Document Types
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Define Document Schema
Groups for Settlement Document Types
You may copy FB to custom group ZB.
A document schema group ZB is created.
Pricing procedure determination
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Pricing Procedure
Determination
The customer pricing procedure is 1 in case of my customer
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Copy type FB entry with Customer pricing procedure = 1 to ZB
Configure Condition Contract Maintenance
Number range
Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract
Maintenance -> Define Number Ranges
You can define your number range here.
Condition contract types
Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract
Maintenance -> Define Condition Contract Types
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Create a contract type ZBBI which is a copy of SBBI
Assign Sales Condition Type Group to ZBON and Purchasing Condition Type Group to ZBBI we created
earlier.
Please note that number range interval is assigned to the Contract type.
Settlement document type
Logistics – General -> Settlement Management -> Settlement Documents -> Settlement Document
Types -> All Document Types
Double click on Document type and assign the document schema group we created earlier. In the
Document Schema group, assign the value ZB we created earlier. Please note I am just skipping a step to
a create a Z Document Type and instead assigning Document Schema Group to an existing Document
Type.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Settlement Process
Condition Contract
Let’s create a condition contract in SAPGUI transaction WCOCO – Condition Contract. You can follow
the blog to create condition contract.
There will be multiple options to create conditions now. Our own condition tables are now visible in the
Condition table drop down.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
You can add a Rebate condition value ZRBT 5% – This will be available in the Settlement document
credit memo.
You can add Bonus Accrual value ZRBA 3 % – This will be available in the Settlement document credit
memo.
You can add Bonus accrual value ZREB 1% – This will be available in Sales order.
Sales Order
Let’s create a Sales order in SAPGUI transaction VA01 – Create Sales Order
Pricing will show ZREB 1% as one of the conditions
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
This has come from the below condition we created in Condition contract.
Settlement
Run SAPGUI transaction WB2R_SC – Settle Condition Contracts.
This will create a ZRBT 5% and ZRBA 3 %– Rebate condition in the credit memo. Please ignore the
reversal documents as they were created for testing.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
Settlement Management in S/4 HANA
Also the condition tables have the entries we had created.
There are a whole of other customizing steps mentioned in the configuration guide which can be
accessed via SAP note 2535889
Hope you enjoyed the blog and found it useful.
Prepared by
Himanshu Arya
SAP SD Public Cloud (Rise with SAP) / S/4 HANA / Ecc 6.0 Consultant
