A settlement type can be defined for each rebate arrangement type. The settlement type determines the way in which settlement data is posted. There are two basic settlement types: debit-side and credit-side.

In credit-side settlement, vendor billing documents are created and in debit-side settlement, customer billing documents are created, as the settlement documents. Credit-side settlement is suitable for vendor rebate arrangements, debit-side settlement for customer rebate arrangements.

You can specify whether the posting of the settlement accounting data is to take place at purchasing organization or site level. If you post settlement accounting data at site level, you have to assign the purchasing organization defined for the arrangement a company code in which Subsequent Settlement is allowed.

If settlement is effected at site level, the rebate income is automatically apportioned among the individual sites in the accounting system. It is possible to apportion income across company codes. If settlement is effected at site level, several settlement documents are created. The exact number of settlement documents created depends on the organizational data, such as the number of company codes.

If settlement accounting is performed at purchasing organization level, the system posts the entry for the company code of the purchasing organization to which the rebate arrangement relates (one settlement document per settlement run for the rebate arrangement).

In settlement accounting, the valid condition basis and the settlement amount (possibly apportioned among sites) for each condition requiring settlement is passed on for billing. If business volumes exist for several tax codes, the rebate incomes are distributed among the tax codes in proportion to the business volumes. A separate billing document item is created for each tax code. The level of tax depends on the settings in the calculation schema. You have the following options, for example:

• The invoice documents contained 16% input tax. During settlement accounting, 16% input tax is set off.
• The rebate incomes are granted as rebates for a service. As a result, 16% output tax is to be calculated. The tax code of the invoice is of no importance.
• No tax. The rebate incomes are posted without tax.

If these billing documents have not yet been released for posting, they must be released manually. The statistical updating in the Information System and the distribution (apportionment) of income only take place at the time of such clearance. In the case of settlement at purchasing organization level, the income is not apportioned by share in business volume at site level until this time.