SAP Settlement Management: Sales Rebate Processing Full Demo

SAP S4HANA 2020 Full demo for the Settlement Management - Sales Rebate Processing on SAP GUI using Condition Contract Management
Settlement Management, Rebate Condition Contract creation, Delta Accrual Settlement, Final Settlement
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Thank you to Gauthier Victor and Dan Magni for helping with the process and system setup 👏👏 .. Connect with them on LinkedIn and send them a nice message!
/ gauthier-victor
/ danmagni
Thank you to SAP FIORI 66 for providing the S4HANA Access!
LINKFIORI66
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Support the channel and get access to Member exclusive content:
/ @abdullahgalal
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Video Chapters:
00:00 Intro
00:39 Thank you to the contributors!
01:30 Start of Demo
01:56 Create Condition Contract (WCOCO)
07:45 Sales Order, Outbound Delivery & Billing
09:48 Rebate Accrual Settlement (WB2R_SC)
15:05 Rebate Final Settlement (WB2R_SC)
Comment, Share, Subscribe!
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[@ajjuram8784]

Even after 3 years it is very helpful video to understand the CCM. I really loved it. Especially for an SD guy like me. Now I got to know why there are 2 entries in the Final settlements. Thanks a lot.

[@AbdullahGalal]

You are very welcome !

[@sahakplt]

Thank you for the clear explanation and for giving us a real business scenario. The concept is more clear for me thanks to you.

[@AbdullahGalal]

Glad it was helpful!

[@jarueda1]

Thank you very much...As Spanish speaker I couldnt find any accurate information about Sales Rebate Process. Even in English Language, I find this really helpful. I am a new suscriber.

[@AbdullahGalal]

Welcome onboard! glad you find the videos useful

[@ruaneric2664]

Accidentally found your video. Amazing job. 👏

[@AbdullahGalal]

Welcome aboard!

[@zipovimg]

It is a great explanation. Thanks,

[@Agoranomundopopular]

Great explanation and great video. Thanks a lot.

[@AbdullahGalal]

Glad it was helpful!

[@MarceloChamon]

Hi Abdullah, thanks for the helpful DEMO. Very professional and clear. Best regards Marcelo

[@AbdullahGalal]

You are welcome Marcelo!

[@mostafaali7782]

Thank so much , your explanation really helped me on my project .

[@AbdullahGalal]

Glad it helped! Thank you

[@sapskills164]

Another valuable video from AJ, Thank you so much...

[@AbdullahGalal]

My pleasure!

[@ginobabu061]

Thanks Abdulla for the detailed explanation.one question. Is it possible to automate the settlement run for both accruals and final settlement?

[@thiagocondor]

Esse cara é bom!!!

[@nganar5108]

Another best video

[@AbdullahGalal]

Thank you Ganar!

[@chiit70]

Dear Bro, Thanks for your effort. I appreciate your hard work. All the best for your future .Good luck. God bless you my friend

[@AbdullahGalal]

Thank you so much for your kind words and support! I truly appreciate your appreciation and blessings. Wishing you all the best as well! If you have any more questions or need further assistance, feel free to let me know.

[@buntubuntu]

Hi Abdullah.. Thank you very much.. it's very helpful. 👍👍👍

[@AbdullahGalal]

Glad to hear that

[@mkm4517]

Thank you so much for the explanation. I find your videos exceptionally well made and insightful. Request you to create a video explaining MM side of the this i.e. Vendor rebate settlement.

[@AbdullahGalal]

Planned soon :)

[@mukeshkumar91]

Thanks for excellent explanation

[@AbdullahGalal]

You are welcome!

[@chandan-ci1yg]

Hi Abdullah thanks for the videos and your explanation is perfect clear and easy to understand. Can you please comment here what is the output type we can use ? Because that credit note will not update in VBRK so we will not able to see in VF03 and we can not use the same out put type which is used for G2 billing type .

[@Rohalbet]

What happens during a partial settlement run? Are we supposed to see the same entries as you showed during final settlement? Im not talking about delta accrual settlement but specifically the partial settlement.

[@naveeshkumar8650]

Really appreciated 👍🏻👍🏻👍🏻

[@AbdullahGalal]

Happy to help

[@basbusschers]

sorry, another question. With the condition REA1, the 3%. if the customer did not hit the 5000 threshold in the first order. In the settelment run would have posted the 3%. And if in the second order the threshold was excited, it would post the 5% correct? So in short the REA1 would post the expected value ever month (settlement) until the criteria for discount are met? then it will pick up the actual discount. And the RES1 is posting the actual discount, which would be nothing if the threshold is not met in the first order/ month? is this a correct summery?

[@MerichHaim]

Hello. Excellent explanation. Been watching your vlog and it’s very helpful. Been wondering if you know how to solve this error when releasing the final settlement? “ISO CODE IS INCORRECT IN VAT REGISTRATION NUMBER”. Thank you in advance.

[@33asce]

Many Thanks for excellence kindness explanation

[@AbdullahGalal]

my pleasure

[@premkumarnellore8355]

wonderful presentation Thank you

[@AbdullahGalal]

my pleasure!

[@zahraalikhani-mc1jc]

thank you so much, very useful👌

[@AbdullahGalal]

Welcome!

[@MohamedSamy-bn1in]

Thanks 4 sharing this vedio, for rebate settl. Is doable to be run on following year?

[@shivashivas7592]

I have a question here, you seems to have customer hierarchy, in such case what was your key combination for condition tables?

[@mohamedhassan-fs5en]

Dear Abdullah Thanks for your wonderful explanation Can I add the sales Rebate to the sales quantity of the material, not to the mount ?

[@purushottamkulkarni8120]

And with adding my below earlier comment, if customer doesnt purchase 10k business volume in the month of may, then he would not get 10% sales rebate but he would get 300 Eur accrual rebate at the Time of may month settlement and if the customer satisfies volume in month of june then he would get 10% sales rebate discount and the earlier accrual rebate would get settled in the month of june, right?

[@abhishekhca]

HI Abdullah, good explanation, would like know about using customer list and customer hierarchy in BVC (Business Volume Criteria), it would be helpful if you can share details on using the same. Thank you

[@minoliperera5304]

Hi Abdullah thank you for the detailed explanation. Could you please do a video on the configuration steps for rebate process please

[@bhargavchinna2304]

Hi Abdullah thanks for the videos and your explanation is perfect clear and easy to understand. If possible can you add videos related to collection and dispute management.

[@AbdullahGalal]

Thank you Bhargav, will do my best!

[@lavakumar9243]

Thank you!

[@AbdullahGalal]

You are welcome !

[@user-nt9tq2tn7l]

Can I set up 1 contract covering rebates for multiple customers? Want to post rebates to individual customers.

[@madhurichavan6372]

Do we have any BAPI to create Manual Customer claim settlement ?

[@dmitriymalinko4738]

Dear Abdullah, this is the very grate demo, I understend the CCM better with it. Thank you very much for your effort. Could you pls give a link to the business process video, which you recommend to watch first this one.

[@AbdullahGalal]

kzbin.info/www/bejne/f2PThGyBfc11mrc

[@manavgujjar2519]

Hi Abdulla, it is very good. First you are explaining business process that's really very good. Pl let me know when you post COPA both Casting based and Account based. Second could you pl include costing with scrap example, in foundry industry pl post your video

[@AbdullahGalal]

Hi Manav, I already explained scrap and the related postings, check the product costing playlist

[@jameslucasmarklew2007]

Thanks for this great explanation! How did you manage to automatically determine the tax code once you did the settlement?

[@patriciaolivera8719]

You add the tax conditions to your price procedure, look the standard procededure A10005, condition RETX

[@AnkitSingh-cb1gh]

Thank you for the explanation. But I am getting an error while doing settlement Tax code via price determination cannot be determined, check Customizing Message no. WS533. How to resolve this error. Pls help.

[@laichistudio793]

Amazing

[@AbdullahGalal]

Thanks

[@shikhakakkar2675]

Thank you for the great content, could you also share configs you maintained for this

[@nickwong6973]

Waiting a vedio for Sales commission for external representive,thank you!

[@AbdullahGalal]

Good idea, will see what I can do

[@rohitnaik5777]

W_CB E 078 Document $1 is incorrect, saving is not possible i am getting this error while saving the contract

[@charobenavides9667]

Hi Abdullah, thank you so much for the explanation. I find your videos exceptionally well made and insightful. Please, you to create a video explaining CCM Sales Commission for External Sales Agen ¿Is possible? Thank you

[@AbdullahGalal]

Hi Charo, Thank you! will do my best.

[@markusjansen3675]

Hi Abdullah, why is the amount of the accruals in May not 3% of 10.000 EUR?

[@subrat303]

I need to know the table Where the condition types and condition value stored from WCOCO.

[@mikebeen7564]

Hi, Please share guidance for 0S02 condition contract type. As per business requirement I need to create condition record for multiple customer. In Business volume selection criteria user wants to put only sales org and division. Rebate condition value should fetch based on these 2 parameter only.

[@gauthiervictor3757]

Hi Mike, If you use this maintenance, then all customers within this organization and division will have its own settlement document at the time of Settlement Run. I presume rebate will have the same calculation for all customers. Careful you have some downside using 0S02 CC. (e.g. Settlement date are for all customer, reversal of all settlement document or nothing...) Regards, Gauthier

[@laichistudio793]

Hi Abdullah, excellent explanation, I am wondering if you could do some videos for chargeback, commissions and incentives and manual settlement that would be great, if they are already done for premier members then I will subscribe

[@AbdullahGalal]

Not done yet, will see what I can do You can see a list of all member videos here kzbin.info/aero/UUMO3-XsUbadfy__sc1kM2jiaw

[@Davidspinozzi]

This is great and I really thank you for it, but I would like to see the customization process. Do you have a video? 'cause I couldn't find it.

[@AbdullahGalal]

Glad you like the video! The configuration document is available on the Google Drive that I share with the channel members (Elite or higher). You can check the details here www.youtube.com/@abdullahgalal/join

[@sohomdasgupta6800]

The video is really helpful.Thanks ! a lot. Can you please tell the difference between Sales Rebate and Sales Rebate Accruals.

[@AbdullahGalal]

Rebate is an expense, Accrual Rebate is an accrual In finance every expense must be posted in the month it happens, so in annual rebate we must post rebate expense every month but we can't give this to the customer until end of year, so instead of posting to customer account every month we post to accrual until end of rebate agreement. Read more on the meaning of accrued expense

[@raghavendraprasad3446]

HI your explanation is very good I have one doubt, can we create the sales order from condition contract?

[@AbdullahGalal]

Why? The contract picks automatically any orders that fit the criteria, no need to creat a SO from the condition contract

[@madhulikadas4738]

Can you please make one video for broker commission and the config behind it

[@basbusschers]

Nice video. Do you know when the accrual is posted? at time of invoice received or goods received?

[@AbdullahGalal]

neither, it's posted when we do the accrual run as in the video

[@agronbandicoot]

This side of SAP doesn't have much coverage on KZbin/elsewhere so huge thanks for this video and the great insights into CCM. A more technical question - how can I get a data dump of multiple condition contracts' business volume selection criteria in one shot? Any SAP table holding the criteria that I could ask my IT support to download for me?

[@AbdullahGalal]

I found WCOCOH and WCOCOF but the have the header and condition data only, couldn't find one for business volume yet, so let me know if you find it!

[@gauthiervictor3757]

Hi, If you are looking to check all the entries that you have maintained in Business volume selection criteria for each condition contract you have in your system, I would recommend you to check table WB2_D_BUSVOLBASE.

[@agronbandicoot]

Thanks. I will request a copy of your suggested table and check it out.

[@agronbandicoot]

Thanks. WCOLI is also one for header data.

[@AbdullahGalal]

@@gauthiervictor3757 I expected that to be a structure and didn't check 😀..thanks for the info

[@mikebeen7564]

The process which you have demonstrated, Will it be working for INDIA region. And I need to calculate based on quantity instead of percentage. Will it be working if I will change the calculation as quantity base.

[@AbdullahGalal]

Test it and see if it works for you!

[@sethu_the_fun5036]

Hi Abdullah, nice video. Thnx.. Quick question: can we create one settlement doc for multiple contracts?

[@gauthiervictor3757]

Hi Sethu_the_FUN, You will need to play with the 2-step process, it will create a Settlement document but not post to accounting. Then you will need to use a collective Settlement document to consolidated all the settlement document "waiting" into 1 Settlement document. FYI: The system will use some criteria to regroup the Settlement document into one (Payer, Ccode, date...)

[@AbdullahGalal]

Thank you for helping Gauthier!

[@victoravalos1288]

Hi Abdullah, in order to validate how much has been accrued for a rebate is there a tcode to validate it?

[@gauthiervictor3757]

Hi Victor, No transaction available to check the remaining of Accrual for a Contract. However you can check the table WCOCOF (entries with Status 4 are already reversed) or create your own report. Regards, Gauthier

[@alebolo19]

Hi Abdullah, I have a doubt related the pricing procedure in sales order and invoice, I use a lot the rebate functionality in ECC,where the accrual was showed into the SD invoice and posted in the invoice post or with VBOF after that. Now in S4 the invoice doesn't has the accrual related to the invoice? the accrual is always related to the condition contract? So the accrual cant be viewed into the customer accountability? Regards,

[@AbdullahGalal]

yes, customer account won't be impacted with the accrual Customers accountability shouldnt be impacted at all before they actually deserve the discount after final settlement if they reach the target

[@gauthiervictor3757]

In S/4HANA, you can still post the accrual at the time of billing document posting if required, but it always come with downside (e.g. wrong calculation when using scales or updating rates). Delta accrual is preferred and used to adjust or post the accrual based on the data in your system. Accrual doesn't not impact Customer accountability, accrual is only an "internal" amount which you know you may have to give back to the customer.

[@khames7891011]

Thanks for the good explanation When you will cover HCM integration with the finance system?

[@AbdullahGalal]

Welcome, Not sure yet I plan to move to COPA and other areas first

[@khames7891011]

@@AbdullahGalal Good also Go ahead

[@vartikaagrawal6445]

Can you give explanation of pricing procedure used in credit memo

[@RohanKumar-wj3wy]

WB2R047, indicating that no customer was assigned to the relevant condition contract--Getting this error while creating Settlement document. Which step could I have missed? Appreciate your help

[@AbdullahGalal]

Have you checked SCN and the other websites for articles on this error? there's even an SAP note explaining this! launchpad.support.sap.com/#/notes/0002627813

[@patriciaolivera8719]

have you validate in your BP that "Relevant for settlement management" is active?

[@soha8732]

👍

[@AbdullahGalal]

👍

[@GeorgePhilipBobby]

Hi Abdullah I am getting the (RED2) 3% determined alongside the (RES1)Sales rebate when i create a Sales order for USD 10000 an hit 10% in first delta accrual. It shd have inactivated the 3%. Any ideas

[@AbdullahGalal]

So when you;re doing the partial settlement, SAP is posting only 3% accrual instead if 10%?

[@nicolasbouillet4715]

@@AbdullahGalal Hi, I got the same issue if you have an idea. Thanks for the video !

[@calotanicolae]

Great content! Is it possible to create rebate based on realised profit margin and not sales volume? Thanks!

[@AbdullahGalal]

Hi Nicolae, do you have this business requirement? it sounds very strange to me! We communicate these targets to the customers to motivate them. The customer knows what target he needs to get a discount. If we communicate a Profit Margin target then the customer will know our profit margin and our cost which are always confedential and can't be leaked to the customer

[@calotanicolae]

@@AbdullahGalal I got more details on this one as may sound strange requirement. So, for the customer is communicated as sales volume rebate, and internally is calculated not only based on sales volume , but they’re looking also at the margin. Next I will have to see how they’re building up the communicated rebate on sales volume based on the margin. Thank you for the reply!

[@pavancg]

Thanks for the explanation- do we get any insight on TRM

[@AbdullahGalal]

Hi Uppada, I've some plans for Bank reconciliation and Cash Management reports, but after I'm done with COPA and Fixed Assets

[@gopinadhareddygangadasu2861]

You should have added Delta Settlement...

[@AbdullahGalal]

@@gopinadhareddygangadasu2861 I would love to add many things, but I prefer giving the keys to the process and you continue searching and learning

[@liztatianaflorez3942]

Hello, good afternoon, thanks for your video. However, I have a doubt: I must create a contract without a central customer. Only multiple customers in the same contract and whether the contract can be applied to a group of customers only. Is this possible?

[@afzarahamed256]

Hi Abdullah, How are the taxes calculated here, in India taxes also need to be captured

[@AbdullahGalal]

Try testing the process with taxes and see what happens, let me know if you get any issues

[@rohitsinha4633]

Please make one series on VISTEX module configurations as well.

[@AbdullahGalal]

Hi Rohit, sorry VISTEX is not my area at all

[@GeorgePhilipBobby]

Hi Abdullah Do you know the workflow or approval for S4 pricing.

[@AbdullahGalal]

Hi George, I've no WF videos at all, nice topic

[@julioviquezchaves7166]

Hi all, there is a way to generate a report from SAP with all Rebates Agreement with their open balance refering to accruals? For example, all rebates agreement accrual balances at 05.31.2021 Thanks!!!

[@AbdullahGalal]

Not sure! check with Gautier on LinkedIn, hope he helps you www.linkedin.com/in/gauthier-victor/

[@gauthiervictor3757]

Hi Julio, There is no report but you can check table WCOCOF (usually - if correct configuration - filtering out status 4), you will then have all the entries for all condition contracts that were not reversed. Connect with me on LinkedIn if you have more questions www.linkedin.com/in/gauthier-victor/

[@dorianlaurent570]

How to interpret the use of scales for accruals? We can see you have -3% for scale 0 If you add some scales you will have by example -3% for 5.000 EUR and -2% for 10.000EUR, because -2% > -3% (and it has to be greater if you want to save the CoCo)

[@AbdullahGalal]

The discount you increases as the target increases as explained in the business proceed video. So from 0 to 5000 you get 2% while from 5000 to 10000 you get 3% This is to motivate the customers to buy more

[@dorianlaurent570]

@@AbdullahGalal I can't enter -3% for 10.000 as -3% < -2% (but -2% for 10.000 and -3% for 5.000 you can enter) it's why I don't get how it works You didn't show an example withs scales on accrual condition

[@mohdidreez2089]

Can you make on Travel and expenses how employee get reimbursement

[@AbdullahGalal]

Hi Mohd, I never covered this part before so won't be able to help much, check this link help.sap.com/viewer/526b9006b5a2427da1d730b66181ea8d/6.05.16/de-DE/7e1e6588603711da36bb000f20dac9ef.html

[@purushottamkulkarni8120]

This is awesome bro, but I have some doubt's. Whats difference between sales rebates and rebate accrual? U gave business sales volume of 10k for 10% sales rebate but nothing for rebate accrual, still rebate accrual value got calculate in final settlement. Does rebate accrual not require any sales volume criteria?I think we can see re bat condition type I'm sales order leave. I could see rea1 condition type in my sales order. Also request you to make a full detailed video on configuration in settlement management.

[@patriciaolivera8719]

In the condiction contract the example set a accrual % of 3% (Condition REA1). In your Sales Document, you have to create in your price procedure a line with the concept of Accrual Base, with "Subtotal" formula 7 referecing the line of the procedure you want to consider for the accrual incrementation, thats the way the accrual will be + witch each invoice you create.

[@AbdullahGalal]

Thank you for helping Patricia! I'm not able to keep up with the number of comments I get 👍

[@AmazoneHotProducts]

How we can delete the Condition contract and edit it after we have run the final settlement.?

[@AbdullahGalal]

Never tried this! why would you delete a contract after the settlement? I think you can create another contract and run if even if the old one is not deleted. What's your business case?

[@tushartrehan1380]

I tried the above steps. reached till the end, but the value of net price and tax not getting updated and hence no accounting document created. Can you help!

[@AbdullahGalal]

Hi Tushar, there can be many reasons for this, requires system analysis

[@patriciaolivera8719]

Hi Tushar, check the pricing procedure A10005 as a reference.

[@sunitatiwari946]

Sir I am getting the error while processing rebate settlement , kindly help me (No condition contracts for settlement selected Message no. WB2R002) I am maintained condition record correctly

[@AbdullahGalal]

check SAP note 2685532 There can be several reasons for this error: The transaction is not relevant for the condition contract The condition contract has not been released yet No contract can be found for the combination of the provided settlement date and condition contract number The error is caused by authorization check

[@asadullahalam9579]

All master and child code of our one customer must achieve the target for rebate, but the settlement/rebate should be given to all child codes instead of only master customer code on the basis of their sales percentages. How we can achieve this? in your video scenario the settlement is been given to the master code for which contract has been created.

[@patriciaolivera8719]

Try the Condition Contract for multiple customers

[@asadullahalam9579]

@@patriciaolivera8719 thank you for your reply. could you please elaborate.

[@GeorgePhilipBobby]

Why is RES1 percentage a positive sign whereas REA1 a negative sign?

[@AbdullahGalal]

REA1 is an accrual that's why it's negative, don't worry about it, the system adds the sign automatically

[@evelinmoreno4946]

this credit memo can be printed? In Latin American are legal documents and needded be printed. Can you associed a message?

[@AbdullahGalal]

Any document in SAP can be assigned a form and printed

[@evelinmoreno4946]

@@AbdullahGalal thank you for your answer. In OS12 put 0S01 en message and so where I can print it?

[@patriciaolivera8719]

In Perú, i can´t reuse any SAP form for my legal documents :( ... For Rebates i have to create a new one.

[@evelinmoreno4946]

@@AbdullahGalal This Credit Memo can be printed by VF31F transaction? Than you

[@evelinmoreno4946]

@@AbdullahGalal I found how to associate a printed message to this document and how print it, individually and in batch

[@ym1127]

How to delete a condition contract once created ??please guide me ....

[@Mrzoli1979]

you can just set it to "inactive"

[@ym1127]

​@@Mrzoli1979 thank you

[@laichistudio793]

Another Scenario I am interested in to see : if customer accruals are 100$ but we pay only 70$

[@albertofernandez5963]

SAP Settlement Management vs Payment Terms

[@albertofernandez5963]

Hi Abdullah, so may ask you whats difference between this new functionaility and actual payment terms ? is there any duplicate functionalities?

[@AbdullahGalal]

Hi Alberto, there's no relation between the two, you can watch the video on payment terms on the channel, and watch the settlement management and you will see the difference. Settlement management is to settle rebates, which is a sales/purchases discount while payment terms is how the invoice is paid

[@architsood8309]

Please share the config if settlement process

[@AbdullahGalal]

Hi Archit, There's a configuration manual available in the Elite members library

[@sudheeshs1999]

How to get into Elite member ​@@AbdullahGalal