Subsequent Settlement: Amounts 

Condition Record Income

Amount resulting from the settlement of the cumulative business volume relevant to the condition record.

The income from arrangements that are to be settled once only and the income from interim settlements of arrangements that are to be settled periodically are updated under this key figure.

Final Settlement Income

Income arising from the final settlement of an arrangement that is to be settled periodically.

This income is based on the total business volume achieved over the validity period (for example, annual business volume). Income already received from previous interim settlements are cleared in the process.

Total Income from the Condition Record

The key figure "total income from the condition record" describes the total income derived from the settlements, i.e. the sum of the key figures "condition record income" and "final settlement income" (proportion of the income from the final settlement). If no final settlement is carried out, the "total income from the condition record" is equal to the "condition record income".

Settlement Documents and Arrangements

The income derived from the settlements of an arrangement is updated to information structure S015 when the settlement document is updated in Financial Accounting.

Irrespective of the date of the document, the income is allocated proportionately to all data records in the information structure that belong to the condition record for which settlement is due. The income due on the basis of the final settlements is distributed proportionately between all condition records of the various periods. In the same way, the income is divided up between all the characteristics in question (purchasing organization, purchasing group, merchandise category, plant, month).

By using two income key figures (final settlement income and condition record income) you can always determine which proportion of the income originates from interim settlements and which amount is a result of the final settlement (e.g. due to a higher scale level or a business volume comparison and arrangement ). You can use this information to create optimization strategies.

In Customizing under the arrangement type, you can determine whether final settlement accounting should be carried out or not. Note the settings that you can make in Customizing under the arrangement type:

  1. If you have determined in Customizing under the arrangement type that the settlements of the arrangement occur only once the 'valid to' date of the arrangement has been reached, no final settlement will occur. Only the key figure "Income condition record" will then be updated; the key figure "Income final settlement" will not be updated in this case.
  2. If you have specified in Customizing under the arrangement type that an arrangement should be settled periodically, then only the key figure "condition record income" is updated using the interim settlement data of the arrangement (settlement accounting of the condition records for the various periods).

Examples

Provision for Accrued Condition Income / Dissolved Provision for Accrued Condition Income

As payments always occur once the validity period of the arrangement has ended, you have the option of posting provisions for accrued condition income for condition records. You first need to ensure that the Provision indicator is marked in Customizing for the condition type.
The provision for accrued income enables you to influence price valuation on the basis of income that is expected from a later settlement. The provision for accrued income reduces the effective price, thus affecting the price valuation.

A purchase order of 10 articles with a unit price of 10 USD is activated.

The following has been determined for an end-of-period refund:

The article can only be valuated at 9 USD per piece, as a subsequent income of at least 1 USD per piece is expected.

When settlement takes place, the provision for accrued income is dissolved and updated to the information structure S015 under the key figure "dissolved provision for accrued income".

Updating of the key figure "provision for accrued income" takes place during invoice verification and data is updated to the information structure S015.

Vendor Business Volume

Sales for the condition record (arrangement) from the purchase order items.

In order for sales to be updated to a purchase order item, this purchase order item must be relevant for Subsequent Settlement. This is controlled by the corresponding indicator in the vendor master, in the purchasing info record or in the purchase order item.

In Customizing for the arrangement type, you can specify what is to be updated as vendor business volume:

or

In the standard system, the vendor business volume is updated to the document date upon invoice receipt. At the same time, the data is allocated to the respective condition record. This means that the data is available for the condition record, and can also be analyzed on a monthly basis (for arrangements settled on a quarterly basis, for example).

Note that in the case of arrangements that are settled periodically, data is determined for the respective condition record (period) that is valid on the document date of invoice verification. The condition record valid at the time of invoice verification can differ from the condition record valid during price determination (purchase order or goods receipt).