Settlement Management in SAP S/4HANA: How Subsequent Settlement Works in Purchasing
If you switch from SAP ERP (ECC) to S/4HANA, you often search in vain for the old transactions for subsequent billing (in the past, often controlled via the WN application). The new centerpiece for bonus agreements with suppliers is SAP Settlement Management. In this guide, we will show you step by step how to map the process from contract creation to message output using the practical example of a purchasing bonus (rebate).
Table of Contents
The Paradigm Shift: From Bonus to Condition Contract
In the past, bonus agreements were often rigid constructs. With Settlement Management, SAP introduces the condition contract as a central control element. This offers more flexibility and significantly better performance in building up sales volume. Here’s the default workflow for a vendor rebate.
Step 1: Create Condition Contract (WCOCO)
It all starts with defining the rules of the game. Instead of the old bonus transactions, we now use the WCOCO.
- Transaction: WCOCO
- Contract Type: Select type 0PC1 (purchase bonus: refund).
- Content: Here you enter the supplier, the validity period and, above all, the calculation basis (sales) as well as the scales.
Practical tip: Make sure that the contract status is set to “Released” so that the system can access it in the subsequent documents.
Step 2: Accruals in the Purchase Order (ME21N)
To ensure that the accounting department is not surprised at the end of the year, provisions should be created during the ongoing purchase.
- Transaction: ME21N
- Condition: In the purchase order pricing, check whether the condition type REBT (Refund Residue) is active.
By inserting this condition, the system recognizes the impending bonus entitlement for each goods receipt or invoice receipt and creates the corresponding provisions on the clearing account in the background.
Step 3: Create Billing Document (WB2R_SV)
Once the accounting period has been reached, the bonus must be formally “claimed”. In S/4HANA, we use specialized billing transactions for this purpose.
- Transaction: WB2R_SV (supplier contract settlement)
- Result: The system creates a settlement document of type 1SEB (DeliveryRemuneration: Bonus Abr., Vendors).
In contrast to the past, the WR (Billing Management) application is used here. This is an important difference from the old world, in which the WN or V application was often in the foreground.
Step 4: Communication with the supplier (message output)
In order for the supplier to be able to trace the credit note or direct debit, the receipt must be output. The message type WKAM is often used here. The output can be done directly from contract maintenance:
- Transaction: WCOCO
- Navigate to the billing document via the document flow and use the output functions to transmit the document by e-mail, EDI or print.
Result
Settlement management in SAP takes some getting used to at first, but it offers much greater transparency thanks to its integration into the core of S/4HANA. With contract type 0PC1 and document type 1SEB , you are ideally positioned to settle your purchasing conditions in an audit-proof and automated manner.
Are you looking for support with the customizing setup of your condition contracts? Contact us for a process analysis!
