S4HANA Settlement Management : Process Overview

[Haripriya_V]

Hi Everyone,

       The title of this blog might be intriguing about what new content this would bring in and I will try a bit to explain before I get to in to the actual subject. 

The white papers published for Settlement management are indeed excellent in content and very much self explanatory. This blog is a small effort sum up the process in setting up all the individual elements right from the Condition contract type to posting settlement documents and sending the corresponding values to CO-PA.

I have tried to mention the SAP standard document types that are connected to each other in the process and will be useful in making (or understanding) a simple standard Sales Rebate process in S4 HANA. 

Here is the sequence of Operations that should be rendered:

1. Creation of Condition Contract Type (0S01- Standard Sales CC)

2. Process Variant Creation : A very useful feature and plays an important role in account determination if used as a access sequence in VKOA settings. 

 3. Condition Type group for allowed Rebate conditions (Standard Sales Group is 0S01)

 4. Business Volume Profile creation (Standard provided is 0S01)

5. Settlement Document Creation for Delta Accruals (Standard Doc for DA is 0S42)  ( Standard Settlement Process type associated is 0S40)

6.  Settlement Document Creation for Settlement (Standard Doc is 0S12) (Standard Settlement Process Process type associated is 0S10)

7.  Allowed combination per Settlement Process type and Settlement Documents (Standard assignment can be checked in the Navigation provided in the white paper and config guide. You can already guess that the combination 0S12 +0S10 and 0S42+0S40  is provided).

8.  Creation of Condition types for Accrual Reversals and Accrual Totals (Standard condition types are REA2 and RED2 respectively- which can eb checked in V/06).

9. Define and Configure Condition Type Group Accrual (Standard group for Accrual is 0S01)

10.  Specify Settlement Settings for Condition Contract Type : This is a very important step which combines/assigns all the above to a Condition Contract type and makes one body which produces the results as required. 

11.  Adjusting the Pricing procedures for Accrual and Settlements (The standard Pricing Procedures provided for Sales are A10005 for settlement and A10006 for Delta Accrual posting)

12.  Pricing Procedure Determination. (There is indeed a Schema group assigned in the Settlement documents which will be used as a Parameter to determine the Settlement pricing Procedure. Standard Schema group for Sales provided is 0S)

13. G/L Account Assignment in VKOA. (Standard condition table provided is 016 and this access has got Process variant as a parameter in determining the G/L accounts. Please be informed at this point that SAP has provided a new Account determination procedure KORS00 specifically for Settlement management. We may don't have to use KOFK or KOFI procedures). 

14. COPA Assignment in KE4I (CO-PA values field assignment for All the condition types involved in the process. All means - The rebate, accrual, accrual total, accrual reversal , partial settlement, partial settlement reversals, adjustments and verified condition types)

The above presented is a simple overview on how to analyze/decode the process of Rebate/Settlement in new S4 HANA. There are very many other settings which can be used to extend the functionality and make it customized to the requirements of Business operations and some of the main elements are Transfer Manager , Split criteria of the Business Volume Profile etc. 

I hope this is useful in assessing your  very first test in S4 HANA system and to reverse engineer the logic behind the process. 

I would like to blog over the Settlement Debate process in my next blog (Yes!! you have heard it right - not a credit memo but a debit memo process that I have recently implemented successfully) however I will wait for your reaction to this blog and proceed. Let me know your thoughts. Any suggestion is welcome. 

Thank you.

Regards,

Haripriya.V

[MNliang]

Hi, Can you share Pricing Procedures for your Sales Rebates that about the contract Type 0S01(Delta accrual and Partial settlement).Thank you very much!

We used the Standard Pricing Procedures：A10005、A10006 but not work.

We hope you can help. Thanks!

[Haripriya_V]

Hi Nilang,

[Haripriya_V]

Hi Nilang, I have created new pricing procedures copying the standard ones but no major changes were made to the new ones. Trust me, the standard ones would work. What was the issue that you were facing? Were you able to resolve?