Name: Settlement of Sales Rebate Agreements - SAP S/4HANA Cloud for Sales, Public Edition
Uploaded: 2023-2-27
Duration: 623 s

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<div><div>In this microlearning, you will learn about sales rebate processing using the functionality of condition contracts and the corresponding settlement. <br><br>The video will be divided into two main sections: First, we will have a look at a typical business process scenario and explain, based on real project implementation experience, how sales rebates are used and what kind of special requirements can occur. After the context has been given, the second part will show you directly in the system how to create the sales rebate agreement, highlight important price relevant information and finally triggers a settlement for a completed period. <br></div></div>

Settlement of Sales Rebate Agreements - SAP S/4HANA Cloud for Sales, Public Edition

Hi everyone and welcome to microlearnings. With this microlearning we will cover sales rebate processing using the functionality of condition contracts and the corresponding settlement. My name is Jonas Klemm. I am an SAP S/4HANA Cloud business processes consultant with a focus on the sales line of business. The structure of this training will be divided into two main areas. First, we will have a look at a typical business process scenario and explain, based on real project implementation experience, how sales rebates are used and what kind of special requirements can occur. After the context has been given, the second part of the microlearning will show you directly in the system how to create the sales rebate agreement, highlight important price relevant information and finally triggers a settlement for a completed period. Many companies today agree with our customers that based on a given volume that occurs between both partners, a certain amount is reimbursed at the end of a period. This is called bonus agreement. The example discussed in this video is about a company that has defined a bonus agreement with a customer crediting 1% of the volume across all sold products at the end of the defined period. Further, it was agreed between both companies that the freight costs that have been incurred in the calculation should not be included in the volume taken into account. As both parties agreed on these conditions, the customer orders different products from the supplier over the specified period and bonus relevant revenue is updated in the system based on the generated billing documents. At the end of the period, the supplier checks the relevant sales via provided standard reports and can initiate the settlement run so that the customer receives the credit memo. In the following demo, the shown steps are now performed to show the condition contract capabilities of the S/4HANA public cloud. First, a sales rebate agreement is created in the system. Here, information relevant to the processes is entered such as the customer, the corresponding sales area, business volume selection criteria and the corresponding conditions. Further, the challenge is to realize the requirement that the valuation basis must be determined without including the freight costs. After the agreement has been approved and released, the bonus relevant sales can be checked. For this, of course, invoice documents must already exist that are taken into account by the condition contract. Subsequently, the condition contract is settled and the credit memo is generated. Please note that in order to not expand the scope of this microlearning, but to focus on the basics and the additional function of allocating relevant price subtotals, this training does not cover bonus accruals or pricing scales. As the business context was explained, let's go into the system and have a look how this scenario can be set up. I am here logged in my S/4HANA public cloud system and have my sales rebates launchpad available. First of all, I will go inside the app Manage Condition Contract Sales Rebates and I will click on Create. For this demo, we will use the first contract type and by selecting that, the UI of the condition contract will be opened. Now we first of all enter the relevant customer and we also define directly the validation period of our contract. In that example we say that this contract is valid for two months, so I will enter the 1st of January 2023 until the end of February 2023. Next, I have to enter the relevant sales area. So here it will be 1010, 10, 00. The next important part would be the business volume selection criteria. As the requirement in our process was to include all sold products to that customer, we have to enter the customer as the relevant criteria. For that I can click on the plus button which opens all possible elements and here I will select the customer and maintain the value. Then we will navigate to the settlement calendar and for this example we will say that we only do one final settlement at the end of the period, so we credit the customer at the end of February 2023. For that, I can add the final settlement by clicking on the plus button, specifying the date and the corresponding settlement type. As we specified the header of the contract, we now have to enter of course the relevant conditions. In our process description, 1% was agreed with the customer without any scales. So we will add the condition type by clicking on the plus button and using the condition type RES1. Afterwards we can click enter and maintain the percentage as this is the default calculation rule. If relevant, this can also be adjusted to a quantity or to an absolute value. You can also see that the standard validity is directly used from the header. Now all of the relevant information was entered to release and save the condition contract. Now there is only one requirement left we did not cover while setting up the condition contract which is about the relevant calculation basis excluding the freight costs. In order to explain that, we first have to look at the pricing procedure set up. For that, we will go inside the configuration of the system, using in that example the app Manage Your Solution. Depending on your system it could be the case that you would have to enter it via the CBC, the central business configuration. In the application area sales and then in the price management section there is the SSCUI set pricing procedures which I will select now. We will have a look at the standard pricing procedure for normal sales orders in a German company code in standard this one starting with Y. As we mark it and go to the control data, we can see that there are two net values, net value 1 and net value 2. Also we see that freight costs are not included in net value 1, so the value of this subtotal can be used for the relevant basis in our scenario. So the question now is how do we set up the condition contract to use exactly this entry and for that we can see the column Subtotal where a 2 is maintained. If we go back to the condition contract and navigate to the sheet Settlement Date, which we skipped while creating it at the beginning, we can select exactly this subtotal, too. And now the condition contract is exactly linked to that subtotal using it as a relevant calculation basis. As you can define your own pricing procedures and assign the subtotals based on your requirements, this can become a very powerful and flexible tool for your settlement logic. Now let's assume the company did a lot of business with the customer and as the period end is reached we want to settle the contract. it would be interesting to see the basis for the bonus settlement. We can use a standard report to check the business volume. Here we can for example enter directly the condition contract number or we can also filter for the customer. As I know the number of the contract, I will enter it directly. Here you have either the possibility to check the aggregated volume for all created billing documents or you can also have a separate view seeing the relevant amounts based on billing document level. For now let's have a look at the cumulative volume. You can see that the condition contract recognizes some values, which will be used during the settlement run. If we go back and select a separate view and single record, we receive further information based on the billing document level. In that example there are three billing documents and by navigating to the right we can see the different subtotals of the pricing procedure. As you can see the sum of the net value consists of subtotal 2 and subtotal 4 which includes the value of the freight costs. As all relevant documents are recognized by the contract the rebate agreement will be settled. In order to initiate the settlement run I will open the app Settle Condition contracts Customer Contracts. In that selection I first enter the settlement date which was entered in the condition contract and was end of February 2023. Then I open the drop down menu of the settlement date type and the final settlement is selected by leaving the field blank. Finally I will enter directly my condition contract in the selection and switch the run type from check run to live run. After the contract was settled, I can navigate to the created settlement document and have a look at the included products with their corresponding values. As we reach the end of the demo, let's conclude the content and topics of this microlearning. First, we considered a possible scenario between a supplier and a customer which provided the framework for our test case. Then a condition contract was created in the system with all the data relevant for billing. Standard reports were used to check and display the business volume incurred so that the document was settled at the end. Furthermore a deep dive was made into the pricing configuration to show the link between subtotals and the condition contract. Now thank you for watching this microlearning. For further learning, be free to check out the openSAP courses.