Claims & Settlement
In the Claims and Settlement process step, the customer is paid for the agreed conditional promotion investment (Pay-for-Performance).
The sales finance organization processes the pay-for-performance claims of the customer and allocates them to the corresponding promotions in order to settle them against the accruals.
The claims analyst can validate the claim, additional information is attached to the claim, such as proof of performance information.
After validating the claim, the claims analyst can resolve the claim by creating a manual settlement. The accrual will be relieved.
During settlement, the system will automatically generated a credit memo. The credit memo will be used to generate a check for payment.
The sales finance organization processes the pay-for-performance claims of the customer and allocates them to the corresponding promotions (condition contracts) in order to settle them against the accruals.
In order to understand the trade claims management business processes it is important to understand the most important objects and definitions:
- Deduction claims
allow customers to claim the amount spent implementing a trade promotion from the manufacturer. The customer does this by not paying the whole amount of a manufacturer’s invoice.
The deducted amount is detected in SAP S/4HANA as an A/R open item.
- Invoice Claims
- are created when a manufacturer receives an invoice document. The account sends an invoice to claim an amount that has been agreed on for a trade promotion
- Settlement
- Once the manual settlement of the condition contract is approved, a settlement document is created. This document generates the billing document and sends the request to create an accounting document in SAP S/4HANA.
- Billing Document
- The credit memo generated from the settlement document.