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Subsequent Settlement

SAP Best Practices for Retail


Purpose, Benefits, and Key Process Steps

Purpose
 Subsequent settlement allows you to perform one-time or periodic settlement for conditions that
are due later. If, for example, you agree with your vendor that certain conditions are not settled
with the invoice, but only if you achieve an agreed volume at the end of a certain period, you can
store such conditions in the system in the form of a rebate arrangement.

Benefits
 Price negotiations are conducted at least once a year
 A part of the conditions agreed with the vendor is applied retroactively instead of directly with the
merchandise invoice.

Key Process Steps


 Create rebate arrangement
 Create purchase order
 Execute goods receipt
 Invoice verification
 Check update of business volume
 Perform partial (or interim) settlement
 Execute business volume comparison
 Perform final settlement

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Required SAP Applications and Company Roles

Required SAP Applications


 SAP Enhancement Package 7 for SAP ERP 6.0

Company Roles
 Retail Buyer Subsequent Settlement
 Retail Non-Seasonal Purchaser

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Process Flow Diagram
Subsequent Settlement

Display Create Execute goods Execute Check update


arrangement arrangement receipt invoice Enter invoice of business
status verification0 volume
Retail Non-Seasonal Retail Buyer Subsequent Settlement

Generate Generate
business Interim business Display
volume with settlement volume with detailed
ECATT (partial (optional) ECATT statement
settlement) (interim
settement)

Execute
Execute partial business Execute final
settlement volume settlement
comparison
Purchaser

Create
purchase
order

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Subsequent Settlement: Overview

Negotiations Create/ maintain


Negotiation with
with vendors rebate arrangement
vendor

Bus. Volume of 20000 or more:


1 % rebate
Period 01/01 to
Goods receipt
Purch. order or 12/31 or Invoice

Provision
?
Business volume update Invoice

At end of Business volume Settlement Credit memo


arrangement comparison

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Structure of an Arrangement€

Arrangement 1 Arrangement 2
- One-time settlement - - Periodic settlement -

Condition 1 Condition 2 Main condition 3


Article PCS-01-ART413 Subrange: Recorder
Whole assortment
Per 100 pc 1 Over €100.000 1%
Over € 1.500.000 5%
Over € 200.000 2%
Over € 300.000 3%
Over € 400.000 4% Periods Conditions
01/01 - 01/31 over € 100.000 3%
02/01 - 02/28 over € 100.000 4%
03/01 - 03/31... over € 100.000 6%...

Single condition Scaled condition Period conditions

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Subsequent Settlement: Example

Arrangement 42

Condition granter Vendor


Validity period 01/01 – 12/31
Conditions Period
A001 Rebate conditions
Agreement levels 1.8. - 31.8. 2%
Vendor: PCS-V411 4% (08/01 – 10/31) 1.9. - 30.9. 4%
1.10. - 31.10. 3%

08/01–08/31 09/01-09/30 10/01-10/31


Total
Bus. vol. (in €) 50.000 80.000 60.000 190.000
Interim settlement 1.000 3.200 1.800 6.000

Final settlement: 190.000 4% = 7.600 - 6.000 = 1.600


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