You are on page 1of 8

Subsequent Settlement

SAP Best Practices for Retail

Purpose, Benefits, and Key Process Steps

 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.

 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

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

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

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

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

Execute partial business Execute final
settlement volume settlement


© 2014 SAP SE or an SAP affiliate company. All rights reserved. 4

Subsequent Settlement: Overview

Negotiations Create/ maintain

Negotiation with
with vendors rebate arrangement

Bus. Volume of 20000 or more:

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

Business volume update Invoice

At end of Business volume Settlement Credit memo

arrangement comparison

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 5

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

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 6

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

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

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 7
© 2014 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an
SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE
(or an SAP affiliate company) in Germany and other countries. Please see for additional
trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,
and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or
SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and
services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated
companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be
changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 8