Settlement Accounting: Conditions Requiring Subsequent Settlemen (SAP Library

Settlement Accounting: Conditions Requiring Subsequent Settlement (Vendor)

Use

You use this process to perform settlement accounting for conditions requiring subsequent settlement. This involves calculating amounts due according to the conditions of rebate arrangements previously created in the system calculated and generating the associated settlement documents. The relevant sums may also be posted in the accounting system.

The volume rebate arrangements entered into with the condition granter (the vendor granting the rebate) in the course of price negotiations are recorded in the system (rebate arrangement processing). The conditions requiring subsequent (end-of-period) settlement can then later be processed automatically on the agreed due dates.
Settlement accounting encompasses both those conditions that require once-only settlement and those requiring interim settlement at the end of certain predefined periods. Prerequisites for settlement accounting are that the conditions are due for settlement and that cumulative business volume data (update data) is available for the validity periods of the due conditions.
The system can tell from the settlement date whether a partial settlement or final settlement must be carried out. You can also stipulate whether or not an interim settlement is to be effected when you invoke the settlement accounting function.
When final settlement accounting is carried out for a rebate arrangement requiring periodic settlement, the total business volume for the entire validity period of the arrangement is taken into account. This is done even if some of the business volume has already been taken into consideration in the past, in partial settlements. In this way, the system checks whether a higher scale level - and thus a higher rate of rebate - can be attained when the individual business volumes are taken together. The result of this computation represents the rebate payable by the vendor for the overall validity period of the rebate arrangement. The sum of the rebates already paid in previous partial settlements is subtracted from the final figure.
In the course of each settlement run, the system calculates the amounts owing with respect to all due conditions of a rebate arrangement. The resulting settlement list provides a detailed documentation and breakdown of the total sum payable.
The amounts shown on the successfully generated settlement list are automatically posted in Financial Accounting. You can also stipulate that the billing documents generated must be released to Financial Accounting manually.
At the time of final settlement accounting with regard to a rebate arrangement, the condition records are blocked and the cumulative business volume update process deactivated. The statistical data with the settlement data can thus not be changed and remain consistent. In addition, the status of the rebate arrangement is set to Final settlement effected for arrangement.
During partial settlement accounting for a rebate arrangement, the condition records are blocked for a new price determination process, for example, and the status of the rebate arrangement is set to Settlement effected for arrangement.
In interim settlement, the conditions remain active and are taken into account in the next partial or final settlement accounting process.

Process Flow

If a rebate arrangement that is subject to a business volume comparison/agreement process prior to final settlement has been created, you must carry out this process once the date for final settlement has been reached. Any discrepancies identified as a result must be reconciled with the condition granter (the vendor granting the rebate). (Continue with step 3.)

If an arrangement that is not subject to a business volume comparison/agreement process prior to final settlement has been created, or if partial or interim settlement accounting is to be carried out, the system computes the business volume once the settlement date is reached.

The system carries out settlement accounting with respect to the rebate arrangement.

Depending on the settlement type, the system generates a vendor billing document or a (customer) billing document.

Notes and Remarks

If the Business volume comparison indicator has been set during the creation of a volume rebate arrangement, final settlement accounting can only be performed after the results of the business volume comparison and agreement process have been recorded in the system.

Ensure that the business volume data is correct at the time of final settlement - in particular, that all invoices have been received.

For final settlement accounting, all documents relating to partial and interim settlements must have been previously released to Financial Accounting. For partial settlement accounting, all documents relating to interim settlements must have been previously released to Financial Accounting.

Settlement can only be carried out for the rebate arrangement if the status of the latter (for example, "Released for settlement") is higher than or equal to the minimum status set in Customizing for the arrangement type (for example, "Release for settlement being checked"). For further information on subsequent settlement, see the Implementation Guide (IMG) under Subsequent Settlement within Materials Management.