Configuration Steps - Settlement Management in S - 4 HANA - SAP Blogs

13/7/2019 Configuration Steps – Settlement Management in S/4 HANA | SAP Blogs
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Abhinav Jain
January 11, 2018 9 minute read
Con guration Steps – Settlement Management in S/4 HANA

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Objective
Having worked on Rebate Management in the past with SAP Innovative Business Solutions ( Custom
Development previously ) and exploring Settlements Management in SAP S/4HANA in my earlier blog, I
though to proceed in the area of con guration which is more of self learning and initiative as I couldn’t
locate too many experts in this domain. Hence I did some dig-down my self and thought to share my
knowledge, whatever little I could gather. This blog will cover the basic Customizing steps for SAP S/4HANA
1709 Condition Contracts which is a new solution replacing Rebate management.
For detailed and standard delivered customizing you may refer to SAP note 2535889.
Prerequisites
https://blogs.sap.com/2018/01/11/configuration-steps-settlement-management-in-s4-hana/comment-page-1/#comment-432657 1/30
Understanding of Rebate Management in ECC.

Understanding of Condition Contracts in SAP S/4HANA 1709. For details on what condition contracts
are, you may please refer to my blog.
Understanding of basic SD terms Condition Type, Condition table, access sequence, pricing procedure
etc.
Steps
This blog will be divided into the following sections
Con gure Pricing & Conditions

Condition tables
Access Sequence
Condition Types
Condition Contract Relevance for Condition Types
Condition Type Groups and assignment of Condition types
Pricing Procedure
Document Schema group for Settlement Document Types
Pricing procedure determination
Con gure Condition Contract Maintenance

Number range
Condition contract types
Settlement Document types

Settlement Process
Condition Contract
Sales Order
Settlement
Steps explained
Con gure 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 speci cally de ned for Condition Contract Management contain the condition contract
number as key eld. Let’s create 2 customer speci c 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.
I am doing this the custom way to explain the basic customizing steps from scratch so that we don’t scratch
our heads later.
Access Sequence
The access sequence maintenance can be accessed at
Sales
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> De ne Access
Sequences->Maintain Access Sequences
Purchase
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Materials Management
(MM) -> De ne Access Sequences -> Maintain Access Sequences
SAP provides access sequences like COMP etc. by default.
Let’s create a customer speci c 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)-> De ne Condition
Types
SAP provides various condition types like REBA.
Let’s create a customer speci c 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)®
De ne Condition Types
SAP provides various condition types like REBA, REBT.
Let’s create a customer speci c condition types ZRBA which is a copy of REBA and ZRBT which is a copy of
REBT.
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
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 -> De ne 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

Conditions -> Sales -> Assign Condition Types to Condition Type Groups
You may copy SBON and create ZBON with the following values
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

Conditions -> Purchasing -> De ne 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.
Pricing Procedure
Sales
Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> Sales (SD) -> De ne 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)
-> De ne 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
Document Schema group for Settlement Document Types

Logistics – General -> Settlement Management -> Basic Settings -> Pricing -> De ne 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
Copy type FB entry with Customer pricing procedure = 1 to ZB
Con gure Condition Contract Maintenance

Number range
Maintenance -> De ne Number Ranges
You can de ne your number range here.
Condition contract types

Maintenance -> De ne Condition Contract Types
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.
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.
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
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.
Also the condition tables have the entries we had created.
There are a whole of other customizing steps mentioned in the con guration guide which can be accessed
via SAP note 2535889
Hope you enjoyed the blog and found it useful.
Alert Moderator
Assigned tags
SAP S/4HANA | Condition contract | con guration | Rebate Management | Settlement management |
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39 Comments
Veselina Peykova
January 11, 2018 at 8:47 am

Another source of information on settlement management con guration is SAP Best Practice Explorer.
Recently I came across a detailed con guration guide located here (S-user is required to access the
content): https://rapid.sap.com/bp/#/browse/categories/sap_s%4hana/areas/on-
premise/packageversions/BP_OP_ENTPR/S4HANA/1709/DE/4/EN/scopeitems/1B6 . The actual le is
under building block BK6. The name is a bit confusing – Sales Rebate Processing (BK6), but it is the real
deal.
Like (1) Reply Alert Moderator
Abhinav Jain | Post author
January 11, 2018 at 4:39 pm

Yes Veselina, that is used as part of the SAP Activate methodology which the customers use to jump start
their adoption to S/4HANA
Jan Thiesen
July 11, 2019 at 1:29 pm

Hello together,
i´ve set up the CCM in our system and i got one problem left – if settle a contract (partial settlement) i get
two item lines for one material – one is positiv, one is negativ – but i want this in one line – is anyone having
this problem as well and has a answer?
Thx for your help
arnab sarkar
January 11, 2018 at 10:00 am

Hi Abhinav,
Really appreciated.
Keep posting some S/4 HANA simple logistic related BLOGs.
Regards,
Arnab

Thanks Arnab !
venu gopal
January 12, 2018 at 12:52 pm

Hello Jain,
Nice document

Thanks Venu !
Former Member

Hai Jain,
I have some case. I know business volume are generated from net value invoice (NETWR). And my invoice
have some other surcharges. So, how we can make my business volume are excluded the other
surcharges?
Your advice are really appreciated.
Thanks.

Hi Peter,
Search for De ne and Con gure Pro les for Business Volume Determination under
Condition Contract Settlement..
Thanks
Former Member
January 31, 2018 at 4:22 am

Hi Jain,
I’ve searched and tested but it can’t be done. From “De ne and Con gure Pro les for Business Volume
Determination” , i didn’t nd where is condition type “PR00” have assigned to amount elds. I don’t know
whether this is the standard habits from settlement management or not. Because, my business process is
business volume determined by price and quantity of material. Surcharge and discount are exclude from
net value of business volume.
Can you give some advices?
Thanks.
Joochul Kim

Hi Abhinav,
It is really informative and helpful.
Appreciated.

Marco Wagner
February 2, 2018 at 4:00 pm

Hi Abhinav,
thank you for the Blog. It is very helpful.
I try to setup a prototype for SD in a ERP EHP-8 system. But I is very complicated, due to missing standard
customizing settings. E.g. no standard condition type like REBA, REBT is available. Furthermore, the
condition contract type SBBI inlcluding a SD condition group SBON which is not available in customizing
etc.etc. So I have no template for copy.
Do you have any idea what´s to do…?
Thank you, regards

Hi Marco,
I did this in S/4 system where the con gs were available. Do you have access to such a system ? Not so
sure about ERP…
Best,
Marco Wagner

Hi, it seems like the content is available only in S/4 HANA 1709 system. I didn´t nd it in S/4 HANA 1610
and ERP EHP-8. Unfortunately it is very di cult to customize a prototype in an ERP system.
Regards
Marco Wagner

Hi Abhinav
one more question about CCS. In ERP rebate processing we use scale groups to distinguish between scale
base and rebate base. Do you know how to setup this with CCS process?
Regards Marco
rogerio de souza lima
March 14, 2018 at 5:35 pm

Hi Gurus,
I am facing a problem regarding a similar issue, when i run the transaction WB2R_SC the results is Ok
(green) but the I got a mensage ” Document $$00000001 has status C and is complete“,and when I try to
nd or open that number the document is not created.
I review the custo about the calculation,condition contract type, the number ranges for the Settlements
document and in the table WBRK can`t see the documents.
Any idea?
best regards
Rogerio
March 17, 2018 at 4:59 pm

Hi Rogerio,
Have you taken the live mode ?
Best,
Abhinav
rogerio de souza lima
March 19, 2018 at 12:06 pm

Hi Abhinav,
Yes I do and has created a document. The problem is whe i run in backgroud and to get ir linked with the
contract.
Kind regards
Rogerio
abhinay gautam
March 27, 2018 at 8:51 am

Hi Abhinav,
We have an intercompany scenario where shipping plant is from di erent company code in sales order line
item. When we deliver the goods are shipped from shipping plant and when we invoice the billing document
is created in sales plant. This is as per standard SAP.
Now we when we come to settlement management, if we activate the option ‘Document Entry with Plant
Data’ then credit memo pulls the Plant from shipping company code which is maintained in sales order line
item. If we dont use this option then no plant is determined in credit memo.
Moreover, it is expected that settlement document should also pulls the plant same as billing document
which is sales company plant. Have you encounter this scenario or any suggestions will be appreciated.
May 1, 2018 at 4:00 am

Hi Abhinay,
Let us take a step back. Could you explain how does the rebate scenario mapping into the intercompany
scenario ? Who is giving rebate to whom ?
Best,
abhinay gautam
May 15, 2018 at 1:41 pm

Hi Abhinav,
Sales Company where order was received is giving rebate to customer.
BR/Abhinay
Ashwin Chandrasekaran
April 30, 2018 at 9:38 am

Hi,
Thank you for the document and it is very well explained.
Can we use this process to map Commission Processing? We have an Agent(Not part of the Organisation)
who is paid commission based on the value of goods dispatched for a Sales Order.
Kindly let me know if we can use this process to con gure Commission for Agents.
Thank You
Regards,
Ashwin
May 1, 2018 at 3:55 am

Hi Ashwin,
Not sure i understand. If he is not part of the system ( neither as customer nor as partner function ),
generate an invoice ( not a credit memo ) for yourself as the customer.
Best,
Alexandros Ntais
May 16, 2018 at 2:51 pm

Very Good document and very helpful.
One question as I do not know the process at all. In Purchasing Rebates is it possible to distribute them to
materials?
BR
May 17, 2018 at 1:14 am

Yes Ntais.
Gautam S
June 28, 2018 at 3:51 pm

HI All
Gautam S
June 28, 2018 at 3:55 pm

HI Abhinav ,
we have EHP6 version and it does have settlement management node under SPRO (logistics general)
Does it need higher version of EHP To have it enabled or any business function needs to activated.
Regards,
GautamS
June 28, 2018 at 9:02 pm

Hi Gautam,
In ECC, condition contract functionalities are available since 606 release.
Enterprise add-ons required:

EA-GLTRADE
EA-RETAIL
Business functions required:

ISR_GLT_VENDOR_FUND
ISR_GLT_VENDOR_FUND_2
ISR_RET_COMPENSATION
ISR_RET_AGENCY
ISR_RET_AGENCY_2
ISR_RET_AGENCY_3
ISR_APPL_AGENCY_4
ISR_APPL_AGENCY_5
ISR_APPL_AGENCY_6
Best,
Abhinav
I am Marvin
July 10, 2018 at 9:59 am

Hi Abhinav,
I tried to follow your blog to test Settlement Management. In VA02 the condition type REBA doesnt show
up and when I look in Analysis Pricing I get some problems. I dont know where I can read the meanings of
messages. It says, that I dont have condition records, but in wcoco I created them. What did I wrong ? Im
pretty new in SAP (since 1st March 18) and I hope you can help me.
Best Regards
Tran Trang
July 10, 2018 at 4:53 pm

Hi,
Thanks for your blogs. It’s useful for me. But can you hint me to con g business volume selection criteria?
Best Regards
Vishal Tandon
August 2, 2018 at 2:16 pm

Hi Abhinav….Nice post!
I have a typical scenario where by I want to pay rebate to a vendor based on sales volume. Example: Vendor
has supplied 100 Iphones to me, I have sold 60 Iphones from the stock to end customers. Now, I want to
pay Vendor 5% rebate based on sales volume of 60 phones. How do I achieve this?
August 2, 2018 at 7:20 pm

Hi Vishal,
Have a rebate condition of 5% in your conditions area.
Your business volume should point to a sales + billing table.
Have a pricing procedure which will have Business volume condition , Rebate condition, tax condition ( if
needed ). This pricing procedure need to be assigned to a schema group which will be assigned to
Settlement Document type
Customize the BV condition in De ne and Con gure Pro les for Business Volume Determination.
Best
Abhinav
Frank Bork
August 10, 2018 at 1:27 pm

Hi Abhinav,
Nice document.
Maybe you can o er also a solution for our following scenario:
We have a customer based Rebate. The Customer is linked to a vendor number. For one special condition
contract type we will post the rebate on the vendor account. How I have to setup the condition contract
type?
Additionally: If the customer has no link to a vendor we will not post on the customer account. In this case
we will post on special GL-accounts. Is this possible?
Thanks.
Best regards
Frank
Neel Patel

Hello Frank, We have a similar requirement and could you please shed some light
Regards,
Vamsee
Nilesh Sukhdeo Sonawane
October 9, 2018 at 10:37 am
Hello Experts ,
I am con guring settlement management but I could not view any condition contract type in drop down list
in T code WCOCO.
Kindly suggest.
Regards,
Nilesh
Kumar Gunjan Sunit
October 14, 2018 at 11:05 am

Abhinav , it was very thoughtful of you to share this.Surely it will help many consultants to learn and
con gure rebate process in S4 HANA.
Lot of thanks…
Kripa Rangachari
December 4, 2018 at 9:08 pm

Thanks for the Step by Step information on Settlement Processing…
Cheers,
Kripa Rangachari.
Juan Carlos Godoy Q
May 8, 2019 at 12:22 pm

Good morning, I have con gured the settlement documents, but I have errors in the accounting entries.
when the settlement is generated, I reverse the provision but also the customer seats, so it cancels the sale
and the provision.
Someone have the same error?
Please your help
kesari sai krishna Sabniveesu
June 11, 2019 at 11:15 pm

Hi Abhinav,
Thanks for the document. I have a question related to rebate condition types, why a few rebate conditions
are appearing in sales order and a few are not. Is there any speci c business logic for bringing them in SO?
Is it just for informative purpose for the customer service person to understand there is a rebate in the SO?
Sai
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13/7/2019 Configuration Steps – Settlement Management in S/4 HANA | SAP Blogs

Ask a Question Write a Blog Post

Con guration Steps – Settlement Management in S/4 HANA

6 Likes 25,151 Views 39 Comments

Understanding of Rebate Management in ECC.

Con gure Pricing & Conditions

Con gure Condition Contract Maintenance

Settlement Document types

Con gure Pricing & Conditions

SAP provides condition table 4AB, 163 etc. by default.

SAP provides access sequences like COMP etc. by default.

SAP provides various condition types like REBA.

SAP provides various condition types like REBA, REBT.

Condition Contract Relevance for Condition Types

Please set the checkbox for Condition Contract-Relevant

Condition Type Groups and assignment of Condition types

The condition type group maintenance can be accessed at

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract

Logistics – General -> Settlement Management -> Condition Contract Management -> Condition Contract

There is a pricing procedure BSETTL available in SAP.

Document Schema group for Settlement Document Types

You may copy FB to custom group ZB.

A document schema group ZB is created.

Pricing procedure determination

The customer pricing procedure is 1 in case of my customer

Copy type FB entry with Customer pricing procedure = 1 to ZB

Con gure Condition Contract Maintenance

You can de ne your number range here.

Condition contract types

Create a contract type ZBBI which is a copy of SBBI

Settlement document type

Pricing will show ZREB 1% as one of the conditions

Also the condition tables have the entries we had created.

Hope you enjoyed the blog and found it useful.

Related Blog Posts

S/4 HANA Implementation

Governance, Risk and Compliance for SAP S/4HANA

Settlements Management in S/4 HANA

S/4 HANA Course material Content

January 11, 2018 at 8:47 am

Like (1) Reply Alert Moderator

Abhinav Jain | Post author

January 11, 2018 at 4:39 pm

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July 11, 2019 at 1:29 pm

Thx for your help

Like (0) Reply Alert Moderator

January 11, 2018 at 10:00 am

Keep posting some S/4 HANA simple logistic related BLOGs.

Like (1) Reply Alert Moderator

Abhinav Jain | Post author

January 11, 2018 at 4:39 pm

Like (1) Reply Alert Moderator

January 12, 2018 at 12:52 pm

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Abhinav Jain | Post author

January 12, 2018 at 8:14 pm

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January 27, 2018 at 4:14 pm

Your advice are really appreciated.

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Abhinav Jain | Post author

January 29, 2018 at 9:48 pm