Subsequent Settlement

Vendors may agree to immediate or retrospective reductions in the purchase price on condition that a certain quantity or value of goods is bought, that payment is effected promptly, or that promotional activities are carried out, for example. Conditions of purchase involving retrospective vendor payments may also be designed to cater for situations in which the vendor bears all or part of certain costs initially incurred by you (e.g. costs of disposal of used packaging).

Conditions can be divided into two groups: those having immediate effect based on individual invoice dates, and those requiring "subsequent" settlement (retrospective settlement at the end of a certain period).

These are taken into account immediately in or at the time of processing individual vendor invoices.

Settlement accounting for these conditions is effected at the end of an agreed period.

For further information on how the system supports the updating of cumulative business volume, and settlement accounting, please see ISR – SAP Retail: Subsequent (End-of-Period Rebate) Settlement. Please note that the documentation for SAP Retail is geared towards retailing terminology (see Retail Terminology).