Settlement Management in SAP S/4HANA: How Subsequent Settlement Works in Purchasing
Those who switch from SAP ERP (ECC) to S/4HANA often search in vain for the old transactions for subsequent billing, because in the past they were often controlled via the WN application. Instead, the new centerpiece for bonus agreements with suppliers is now SAP Settlement Management. Therefore, in this guide, we will show you step by step using the practical example of a purchasing bonus (rebate) how to map the process both from contract creation to message output.
Table of Contents
The Paradigm Shift: From Bonus to Condition Contract
While bonus agreements used to be rigid constructs, SAP is now introducing the condition contract as a central control element with Settlement Management. This creates more flexibility and also significantly better performance in building up sales volume. In the following, we will therefore show you the standard workflow for a supplier 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. In addition, you create transparency about impending obligations at an early stage.
- Transaction: ME21N
- Condition: In the purchase order pricing, check whether the condition type REBT (Refund Residue) is active.
As soon as this condition has been inserted, the system recognizes the impending bonus entitlement every time goods are received or invoiced. It then creates the corresponding provisions on the clearing account in the background, so that your financial accounting always remains up-to-date.
Step 3: Create Billing Document (WB2R_SV)
As soon as the accounting period is reached, the bonus must be formally “claimed”. For this purpose, we therefore use specialized billing transactions in S/4HANA.
- 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 to the old world, because there the application WN or V was usually 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 for this purpose. In addition, the output can be made 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 may take 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 therefore ideally positioned to settle your purchasing conditions both audit-proof and automated.
Are you looking for support with the customizing setup of your condition contracts? Contact us for a process analysis!
