Select language:

Process documentationCondition Contract-Based Settlement

 

This variant is based on a business volume table from which all possible documents and combinations of documents can be filled. Settlement can be made on the basis of itemized information (for example, sales and distribution invoices, deliveries, invoices, point of-sale data) or is based on a sales revenue table that can be filled from an available data source, for example, Logistics Information System (LIS), SAP NetWeaver BW, customer reports, or vendor data sources. This can be any internal data source (for example internal tables, LIS or BI content) or an external data source like an excel sheet or customer report from your business partner, which is uploaded to your system. The table might contain aggregated business volumes or at least the business volume of single documents and line items. It gives you any flexibility to define your calculation basis and has to be defined during the specific implementation project.

The advantage of this form of settlement is that it has high performance for processing mass data, which is settled cumulatively and is created for one remuneration request (which is technically a single settlement request document) at a time for each vendor or customer. Additionally, all required document types can be accessed for settlement purposes if they have been entered in the sales revenue table.

Process

This graphic is explained in the accompanying text.

Compensation Process (Generic)

  1. At the beginning of a compensation process, the vendor might send you a price agreement that refers to particular products or product groups. You receive the price agreement by using B2B SOA enterprise services for TradePriceSpecificationContract (TPSC), for example. Alternatively the price agreement is created manually as condition contract in your back-end system.

  2. The condition contract stores information about types of rebates, their validity period and eligible business partners

  3. In the Customizing you define your business volume table, which should be used as calculation basis conditions refer to and are calculated by considering the condition contract.

  4. The table can be filled by any internal data sources (for example internal tables or BI content) or external data sources like excel sheets from your business partner can be uploaded. The table might contain aggregated business volumes or at least the business volume of single documents and line items. It gives you any flexibility to define your calculation basis and has to be defined during the specific implementation project. You can also define whether you want a partial of final settlement.

  5. Once the business volume table is loaded and valid condition contracts are available to be settled, a settlement program can be started to calculate the current rebates. To calculate prices, the conditions in the condition contract are referred to and are taken into account in the calculation schema of the created settlement document, a so-called remuneration request

  6. The remuneration requests created from the settlement report use pricing to calculate the amount of the rebate on the basis of the respective condition contract. Technically remuneration requests are single settlement requests, defined and used within the component Agency Business. All features of single settlement requests are available, for example accruals can be posted with each document.

  7. As a rule, remuneration requests are created with a posting block. This means that they function at first as a container and can be bundled in a collective document. In this case, posting to financial accounting takes place from the collective remuneration request you created.

  8. You can use output control for the remuneration requests to send them to the vendor (for example by B2B SOA enterprise services for CustomerInvoices) to be checked.

  9. You receive the invoice by using B2B SOA enterprise services for SupplierInvoices, for example

Result

As a result of this compensation process, you have determined a remuneration request based on your flexibly defined business volume table considering a specific condition contract. The remuneration request can be posted solely to financial accounting or can be bundled to a collective remuneration request.

Example

A retailer agrees with a vendor on a graduated discount scale on the basis of his or her sales revenues. He or she specifies the conditions in a condition contract. The retailer's point-of-sale data is used as a revenue basis. Settlements by this vendor are to be made every two weeks, and one chargeback document is created for the vendor.

  1. At the beginning of a compensation process, the vendor might send you a price agreement that refers to the sales of particular products or product groups. You receive the price agreement by using B2B SOA enterprise services for TradePriceSpecificationContract (TPSC), for example. Alternatively the price agreement is created manually in your back-end system. Upon achieving a specific sales volume, measured by cash sales (point-of-sale data), discounts are granted by the vendor, which are then presented every two weeks as chargebacks in an invoice. This data is stored in your system as a condition contract.

  2. Sales of relevant products are updated in your SAP NetWeaver BW and are aggregated periodically, for example, every two weeks.

  3. In Customizing, you define the sales revenue table in which the aggregated sales revenue or point-of-sale data is written and can be used in the settlement. This data is written in a new sales revenue table in SAP ERP and can therefore be used in the settlement in SAP ERP.

  4. In Customizing of the contract type, you define the settlement type that is valid for this vendor, for example, partial settlement or final settlement.

  5. You start the settlement report every two weeks and settle the condition contract.

  6. To calculate prices, the conditions in the condition contract are referred to and are taken into account in the calculation schema of the settlement document.

  7. The chargeback documents created from the settlement report use pricing to calculate the amount of the chargeback claim on the basis of the respective condition contract. If you want, you can post the expected vendor chargebacks as accruals.

  8. As a rule, chargeback claims are created with a posting block. This means that they function at first as a container for claims on the vendor. You can bundle claims in a new chargeback claim. In this case, posting to financial accounting takes place from the collective chargeback claim you created. Release to financial accounting then takes place, depending on the vendor's response. If he or she accepts the chargeback claim, the document is released. .

  9. You can use output control for the remuneration requests to send them to the vendor (for example by B2B SOA enterprise services for CustomerInvoices) to be checked.

  10. You receive the invoice by using B2B SOA enterprise services for SupplierInvoices, for example.

Result

As a result of this compensation process, you have determined a chargeback claim for your vendor on the basis of your aggregated point-of-sale data (cash sales). The invoice document is the basis for posting the claims to financial accounting. Itemized data for each sale is only possible if it was also updated for each document in SAP NetWeaver BW and then aggregated.

Was this page helpful to you?

Related Content

The following content is not part of SAP product documentation. For more information, see the following disclaimer Information published on SAP site .