This process description explains the complete business cycle of Subsequent Settlement.

The following graphic illustrates the individual phases of Subsequent Settlement. All the functions except Business volume comparison and Final settlement occur repeatedly during the validity periods of the conditions.

You generally negotiate prices with your business partners at least once a year. You can set the prices for individual articles directly, or discuss end-of-period rebates for one or more articles. You settle end-of-period rebates with the arrangement partner (vendor or prior vendor, for example) on the basis of the business volume, sales, points, etc. achieved.

You enter rebate arrangements (together with the conditions for subsequent settlement) in the system so that automatic settlement accounting can take place on the agreed dates.

Within the validity period of each rebate arrangement, the system continually updates the business volumes (expressed as values, quantities, weights, physical volumes, and points) for the relevant areas of application for each condition. The updated cumulative business volume data serves as the basis for settlement accounting.

The business volume data can be updated on the basis of data from Pos, goods receipts, or verified invoices. The conditions determined during price determination in the purchase order are valid here. These conditions are evaluated at goods receipt or during invoice verification, and trigger the updating of cumulative business volume.

Business volumes from vendor billing documents and settlement requests are updated when the documents are released to Accounting.

If you have agreed with your business partner to compare and reconcile your respective cumulative business volume data, you carry out this process prior to final settlement. If the values you and your business partner determine are different, you negotiate a value acceptable to both. This agreed business volume figure then serves as the basis for final settlement.

At the end of the validity period of a rebate arrangement, or at the time of partial settlement accounting for a period-specific arrangement, the system calculates the rebates payable with regard to conditions that are currently due for settlement and creates a settlement list. In this process, system takes the cumulative business volume data not included in previous settlement accounting into consideration. The amounts payable thus determined are automatically posted in Financial Accounting according to the settlement type.

You can carry out interim settlement accounting at any time for rebate arrangement conditions for which settlement accounting has not yet been effected. Rebate income that is settled as a result is then offset against the amounts calculated as being due at the time of partial or final settlement accounting.

Rebate arrangements and all associated documents can be archived. You can store all the relevant data in an archive, and access this again as and when needed. To ensure data consistency and traceability, all index files are archived together. A deletion program is also available.