How to get the settlement business volume to reflect the actual amount paid by the customer?

[former_member803556]

Hi Sales/OTC Experts -

We are implementing scope item 2TT - Sales Commissions - External Sales Representative (on S/4HANA Cloud) for my client. They have a unique requirement regarding the business volume selection logic of the contract and settlement, and I wanted to see if anyone else out there has faced a similar issue.

Here's the situation:

• We are using condition contract type "OCS3 - Commission : Billing Doc Paid".

• The standard business volume selection logic for this process uses the following criteria:
  • Considers only billing documents which have been cleared (paid by the customer)
  • Of those, selects the billing documents that match the Business Volume Selection Criteria in the Condition Contract
  • Of these selected billing documents, it sums up the full net value of each

• However, my client wants the business volume selection logic to only consider the value of the actual incoming payment received from the customer for the given invoice (via the app Post Incoming Payment), which is many times not the same as the full net value of the billing document. This occurs in the following scenarios:

• Scenario 1:
  • The customer has payment terms which allow for a cash discount (e.g. 2% 14, Net 30).
  • For example, let's say that the invoice to the customer was for $10,000, and the customer paid within 14 days, thus qualifying for the 2% cash discount. So the payment amount sent by the customer was for $10,000 - ($10,000*.02) = $9,800.
  • The customer pays the invoice within the appropriate payment terms (e.g. within 14 days), and thus qualifies for the 2% cash discount
  • So in the app Post Incoming Payments, the AR team will clear that invoice (i.e. the open accounting document of type "RV" ) via the standard process for posting payment within the terms window.
  • But, when we run the settlement process for the corresponding condition contract, it still reflects business volume of $10,000. However, we want it to reflect $9,800.

• Scenario 2:
  • The customer may be claiming a trade promotion deduction, and thus pays an amount less than the full value of the billing document. (Side note: we are not using SAP's Sales Rebate Processing functionality (scope item 1B6), but instead have built an interface to a 3rd party TPM system to handle managing trade deductions.)
  • For example, let's say that the invoice to the customer was for $10,000, but since they are claiming a deduction of $1,000, they only send payment in the amount of $9,000.
  • So in the app Post Incoming Payments, the AR team will clear that invoice (i.e. the open accounting document of type "RV" ) via the following two entries:
  • "DZ - Customer Payment" in the amount of $9,000
  • "ZC - Chargeback Credits"(custom accounting doc type created to support deductions processing and the interface to the 3rd party TPM system) in the amount of $1,000
• But, when we run the settlement process for the corresponding condition contract, it still reflects business volume of $10,000. However, we want it to reflect $9,000.

Thoughts?

And below are some of the links, documentation, and config that I've been sifting through, looking for clues. But no luck yet. It seems that the answer must be buried somewhere in one of those config steps, but I'm just unable to locate it?

• Scope Item: 2TT - External Sales Representative (S/4HANA Cloud Best Practices)
• 2535889 - CCM - Description of delivered configuration
• 2481672 - Condition Contract Management - Useful Documents
• 2815535 - FAQ: Condition Contract Management by Settlement Management in SAP S/4HANA
• Condition Contract Management - Purchasing and Sales Rebate Processing (S/4 HANA deck and config gui...
• Condition Contract Management - Sales Rebate Processing (ERP config guide)
• External Commissions Settlement - Condition Contract Process Variant (SAP Help Portal)
• Settlements Management in S/4 HANA (SAP Community Blog Article)
• All available config steps in S/4 Cloud for the area "Sales Commission Settlement":
  • 1. Define Activity Reasons
  • 2. Define Settlement Process Types
  • 3. All Document Types
  • 4. Specify Pricing Procedures for Settlement Documents / Settlement Doc Lists
  • 5. Specify Partner Functions to Identify External Sales Agents
  • 6. Configure Supplier Condition Contract Types and Settl. Settings
  • 7. Define Condition Contract Process Variants
  • 8. Define Commission Groups
  • 9. Specify Text Types for Output

Thanks,

Ryan

[Webster_Cui]

Hello Ryan,

I as Sales support engieer reviewed all the apps involved in scope item 2TT and located the reponsible teams for the customer scenario. Also I added the right tags for your question and hope the right expertise could see the question and respond as soon as possible.

S4HANA PROCUREMENT
S4HANA FINANCE CORE

Monitor External Sales Commissions - External Agents
https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F3480')/S22OP
Application Component LO-GT-CHB

Post Incoming Payment
https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F1345')/S22OP|
Application Component FI-FIO-AR

Manage Settlement Documents
https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F3254')/S22OP
Application Component LO-AB

Post Incoming Payments
https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F1345')/S22OP
Application Component FI-FIO-AR

Regards,

Webster

[OwenLiu]

Change tag to Procurement and Finance

[OwenLiu]

We helped you to accept the answer, since there were no updates after 7 days.

You can unaccept it anytime if you have further questions.

[thorsten_kraemer · Accepted solution]

Hello Ryan,

Scenario 1:

On-prem: New CDS-view to fetch the amount paid.

Cloud: As far as I can see this is not supported

Scenario 2:

On-prem: Once you capture the Chargeback credit as a settlement document it is part of your business volume.

Cloud: as above.

Regards,

Thorsten

[Javier_del-Peso]

Hi Ryan,

As a general rule, to reflect the Finance postings you mention in the Sales volumes, they need to have a sales document and not just the Finance document.

The only option I can suggest is to post those discounts and payment deductions to a B/S account and generate the Sales credit memo to clear them. While this is not common for cash discounts, but still may work, for payment deductions it should be the right best practice rather than doing a manual finance sales deduction.

Regards,

Javier del Peso