Settlement Management functionality supports all types of settlement processes, including core business processes that need to be fully integrated in the order-to-cash cycle or within in a procure-to-pay scenario, such as condition contract settlement (rebate settlement), as well as standalone processes, whereby you provide special financial settlement services for your business partners

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1. Introduction ➔ Settlement Management ➔ Condition contract ➔ Sales Rebates
Settlement Management is the key solution within S/4 HANA to handle subsequent settlement of
Customer and Vendor rebates. Condition Contract Management provides a central, standardized
solution for administration of supplier and customer conditions. Accruals can be calculated and posted
as a statistical condition in an Extension Ledger in FI. Pricing conditions can be mapped to value fields
in Combined COPA to provide detailed Gross-to-Net Revenue analysis.
Prerequisites
Understanding of Rebate Management in ECC.
Understanding of Condition Contracts in SAP S/4HANA 1709. For details on what condition
contracts are, you may please refer to my blog.
Understanding of basic SD terms Condition Type, Condition table, access sequence, pricing
procedure etc.
Some of the key pain points of ERP rebates were:
Lack of flexibility in defining the business criteria for rebates. This was pretty much restricted to billing
data for sales.
From a Sales side, data was redundantly duplicated into giant tables (VBOX, S030, S136).
Change in rebate conditions required regeneration that locked down tables.
Separate processes (area of configuration, transaction codes) for both supplier and customer
Condition contract types as per business scenarios
Basic scenario with a condition contract for one customer (0S01)
Condition contract for multiple customers (0S02)
Condition contract for one customer with a two-step settlement (0S03)
Condition contract for multiple customers with a two-step settlement (0S04)
Condition contract for one customer with goods-related rebate taxation (0SG1)
Condition contract for multiple customer and goods-related rebate taxation (0SG2)
Condition contract for one customer, goods-related taxation, 2Step settlement (0SG3)
Condition contract for multiple customer, goods-related taxation, 2Step settlement (0SG4)
Condition contract for TPM integration, one customers (0ST1)
Condition contract for TPM integration, multiple customers (0ST2)
Condition contract for TPM integration with claims, one customers (0ST3)
Condition contract for TPM integration with claims, multiple customers (0ST4)

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2. Configuration ➔ Condition contract ➔ Sales Rebates
i) 1. Configure Pricing including Condition Contract Conditions
In this step, you define pricing conditions that are relevant for the calculation of the
settlement amount during the condition contract settlement.
In particular, we make specific settings for the so-called condition contract conditions
which you enter in the condition contract maintenance in the Conditions screen area.
Contract conditions usually comprise the rebate and accrual conditions.
ii) 2. Configure Condition Contract Maintenance
In this step, you first define and configure parameters for condition contract types and
then the condition contract types themselves.
iii) 3. Configure Condition Contract Settlement
In this step, you first define and configure parameters for condition contract settlement.
Then you enhance existing condition contract types with these parameters
2.1. Configure Pricing & Conditions
2.1.1. The Following settings are mandatory in rebate processing:
A. Activate Rebate processing in the Sales Organization
IMG Path
Enterprise structure ➔ Definition ➔ Sales and distribution ➔ Define Copy,
Delete, Check Sales Org.
Transaction code OVX5
Select your sales org. click on detail button and then Tick the Rebate Processing active check
box.

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B. Activate Rebate processing in Billing Document type
IMG Path
Sales and distribution ➔ Billing-Billing documents ➔ Billing type
Transaction code VOFA
Select the billing type go to details (T-code- VOFA) and then Tick the checkbox- relevant for rebate
processing
C. Activate Rebate in Payer Master Record
Open the Business Partner master record -T-Code: BP ➔ Business Partner

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go to Sales and Distribution tab ➔ Order tab ➔ check relevant for settlement management
Go to billing tab and then check Rebate tick ( )
Save it.
2.1.2. Condition Tables Creation
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing
➔Sales (SD) ➔ Define Condition Tables Display Condition Tables
Transaction code V/03
We have created new condition table as 501 & 502 ➔ Condition contract and COCO- Material ➔
COCO_NUM

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2.1.3. Access Sequences Creation
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing
➔Sales (SD) ➔ Define Access Sequences
Transaction code V/07
SAP has given standard access sequence COMP
Here we have created our own access sequence ZOMP instead of COMP
We have assigned two tables ➔ 501 & 502
2.1.4. Condition types Creation and Assignment of access sequence to Condition types
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing
➔Sales (SD) ➔ Define Condition types
Transaction code V/06
We have standard condition types but we are created own condition types as per business scenarios
as below

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Condition type Description Access seq Description
ZAST SF: Already Settled N/A
ZBSO SF: Business Volume N/A
ZRA1 Rebate Accruals_REA1 ZOMP Condition Contract & CC/Mat.
ZRBA Bonus Accrual ZOMP Condition Contract & CC/Mat.
ZRBD Rebate BusVol_REBD ZOMP Condition Contract & CC/Mat.
ZRBT Rebate ZOMP Condition Contract & CC/Mat.
ZREB Bonus Accrual ZOMP Condition Contract & CC/Mat.
ZRJ1 Rebate AdjusT_REJ1 ZOMP Condition Contract & CC/Mat.
ZRS1 Rebate_RES1 ZOMP Condition Contract & CC/Mat.
ZRSA Rebate AccrualsSettl N/A
ZRU1 Rebate Unlike_REU1 ZOMP Condition Contract & CC/Mat.
ZRV1 Rebate Verified_REV1 ZOMP Condition Contract & CC/Mat.
Same condition types created in SD side, MM side and we have assigned access sequence to required
condition types
2.1.5. Maintaining Pricing procedure
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing
➔Sales (SD) ➔ Define Pricing procedures
Transaction code V/08
We have created two pricing procedures for below business scenarios
Sales Rebate Condition contract ➔ A10005 ➔ Z10005 (Only SD)
Settle Bonus (MM & SD) ➔ BSETTL ➔ ZBSTTL
OTC procedure ➔ RVAA01➔ ZSDPRO (Maint Req condition types)
Sales Rebates Pricing procedures ➔ Z10005
Note: - Need to maintain gross amount step and Maintain subtotal as 9 then only rebates values
posted into accounting document including tax

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Assigned required condition types and This procedure will be determine while generating credit memo
after executing Contracts settlement ➔ WB2R_SC
Order to cash Pricing procedure ➔ ZSDPRO (Factory sales)
We have assigned required rebate condition type ZRS1 in OTC procedure
When we create sales order the rebate condition values copied from sales rebate contract (ZS12) to
sales order
2.1.6. Specify CC-Relevance for Condition Types
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Condition
Contract Management ➔Condition Contract conditions ➔ Sales ➔Specify
CC Determination Relevance and Copy Control for Condition Types
Transaction code VM17
We need to activate the condition types are relevant for Condition contract or not
Check the Relevant for Condition Contract Determination in Pricing indicator and the Usage parameter
for the following condition types

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2.1.7. Define Condition type group
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Condition
Contract Management ➔Condition Contract conditions ➔ Sales ➔Define
Condition type group
Transaction code VM12
We have created our own condition group ZS01 instead of 0S01
2.1.8. Assign condition type to Condition type group
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Condition
Contract Management ➔Condition Contract conditions ➔ Sales ➔Assign
Condition Types to Condition Type Groups
Transaction code VM13
Here we are assigning our rebate condition types to Condition type group ➔ ZS01
Select entry ZS01 and then double click Condition Types for Group as below

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Here we must assign our required rebate condition types and tables
2.1.9. Define Account Keys for rebate conditions
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Account
Determination ➔ Revenue Account Determination (SD) ➔ Define and Assign
Account Keys
Transaction code VOK11
We are standard account key for rebate condition type
Assigning account keys to sales rebate condition types
This setup will help to post rebate credit memo to accounting document

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2.1.10. Assign GL accounts ➔ OS1, ERB, ERU
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Account
Determination ➔ Revenue Account Determination (SD) ➔ Define and Assign
Account Keys
Transaction code SPRO
Select entry Account key table and assign g/l Account for sales rebate
This setup will help determine G/L accounts to post accounting documents
2.1.11. Define Document Schema Groups for Settlement Document Types
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing ➔
Sales ➔ Define Document Schema Groups for Settlement Document Types
Transaction code SPRO
We have created two document schema groups ZS instead of OS for sales rebate process and
Bonus settlement process ZB instead of FB

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2.1.12. Pricing Procedure Determination
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Pricing ➔
Sales ➔ Specify Pricing Procedure Determination
Transaction code SPRO
This setup will help to determine sales rebates pricing procedure while creating credit memo after
rebate actual settlement WB2R_SC
This setup like our SD pricing procedure determination
2.2.Configure Condition Contract Maintenance
2.2.1. Define Number Ranges
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Maintenance ➔ Define Number Ranges
Transaction code SPRO
We have maintained separate number range for our own contract type
We have created CH for sales rebate contract and SD for Sales bonus process

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2.2.2. Define condition category (Optional)
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Maintenance ➔ Define Condition
Contract Categories
Transaction code SPRO
This setup behaves like sales document category
2.2.3. Define and Configure Field Status Groups for Header Fields (Optional)
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Maintenance ➔ Define and Configure
Field Status Groups for Header Fields
Transaction code SPRO
This setup will help to control the fields in condition contract type
Its similarly looks like BP role field control

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2.2.4. Define Condition Contract Types
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Maintenance ➔ Define Condition
contract types
Transaction code SPRO
We have created ZS01 contract type instead of 0S01 for sales rebate condition contract type as below
Here we have changed some fields like as below
Number ranges ➔ 01 to CH
Condition type group ➔ 0S01 to ZS01
Note: - This setup like sales document controls and if you create any new value need to assign here
and then this contract type behaves as our own contract type.

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2.2.5. Activate Additional Functions
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Maintenance ➔ Additional checks ➔
Activate Additional Functions
Transaction code SPRO
The additional features for the maintenance of conditions in a condition contract are active in the
Cloud delivery.

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2.3. Configuration for Settlement document process
2.3.1. Maintaining settlement document types
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Settlement
Documents ➔Settlement Document Types
Transaction code SPRO
We have standard settlement document type 0S12 and we have created ZS12 copied from 0S12
Here we have changed some values
Document schema group ➔ ZS instead of 0S
Account determination procedure ➔ KOFI00
Here document schema group as like document pricing procedure in sales document type controls
and We need to GL account against account key “0S1” for rebate credit memo account documents.

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2.3.2. Maintaining settlement document types
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Settlement
Documents ➔Settlement process type
Transaction code SPRO
Here we have assigned our settlement document ZS12 ➔ZS10

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2.3.3. Allowed Combinations Settlement Process Type / Settlement Document Type
Here we are assigning settlement document type to settlement process type
IMG Path
Logistics General ➔ Settlement Management ➔ Basic Settings ➔ Settlement
Documents ➔Allowed Combinations Settlement Process Type / Settlement
Document Type
Transaction code SPRO
This setup will help to maintaining link between Settlement document type to settlement process type
Note :- When we create settlement documents, it will the entry whether the settlement document type is
allowed for the settlement process type or not and these fields will help to display our customized settlement
doc and process types while creating condition contract.

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2.3.4. Specify Settlement Settings for Condition Contract Types
IMG Path
Logistics General ➔ Settlement Management ➔ Condition Contract
Management ➔ Condition Contract Settlement ➔ Specify Settlement
Settings for Condition Contract Types
Transaction code SPRO
Select our condition contract type ZS01
click to open detail mode as below
Here we need to assign our
Settlement Proc. Type (Accounts Receiv) ➔ ZS10
Settlement Doc. Type (Accounts Receiv) ➔ ZS12

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3. Order to cash Process with condition contract settlement
The general process in the CCM differs from the standard Rebate processing in the sense that
there is no rebate Agreements at the first step. There are Condition contracts which need to be
created and released.
3.1.Steps to create Condition Contract
Now we are creating condition contract for sales rebate and release the contract then our rebate
value will be determining while creating sales order
3.1.1. Execute transaction WCOCO and click on ‘Create’
Select the type of contract you would want to create like ZS01 which is created as our own contract
type
Note: - We have SAP standard contract type 0S01 and we have created our own contract type as ZS01
because of we should not disturb SAP standard document types.
Enter the customer, validity period and our sales area for which you want to create the condition
contract

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Enter the business volume selection criteria. This step defines which invoices are relevant for
application of this condition contract
We have multiple combination of business volume selection criteria. Click this option to add
business volume selection criteria line and here We have selected “0001” customer and need add
details as below screenshot
Now Go to settlement data tab and add material number

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Go to settlement calendar
Enter the Settlement Calendar. This step denes when you would like to carry out partial/final
settlements
Here we have different options to maintain for settlement calendars and settlement date types and we
have added manually this entry.
Create rebate condition as below screen shot

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Earlier we have created two combinations of condition tables those will be appear as dropdown list as
above screen shot
Here we need to select any one combination to create rebate condition while creating condition contract
This step defines as we are creating new condition record in condition contract level and save it .
If we enter any incorrect data, then system will throw the below error pop up

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Click button then system will show the incorrect data screen as below
Now we need correct the data and save the contract then system will allow to save the contract as below
pop up
Condition contract number generated “3000000004”
Go to change mode ➔ WCOCO ➔ 3000000004

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Click and then contract will open as below screen shot
Click to release the contract for further process and One thing is of utmost import is to release the
contract. Hence release the contract in WCOCO

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Once sales rebate condition contract is released the we need to start O2C process as below
I won’t be explaining how to create a Delivery, PGI, Invoice etc but what needs to be mentioned is that
either these documents can be created before the condition contract creation or after the condition
contract creation. In case Sales document is created after the contract creation, ZRS1 rebate condition
would be available in the conditions tab automatically
Sales process flow
Creating sales order ➔ VA01
Double click the line item and go to condition tab

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See here the rebate condition is determined from contract to sales order as above screen shot
Note: - In case the Sales document is already created before the contract creation, the rebate would be
provided as part of the settlement process and rebate condition would be visible in Credit memo which will
book the correct accrual amount to the respective accounts. So there is no need to adopt the Sales order
anymore. .
Creating delivery document ➔ VL01N
Delivery document is created with reference to sales order “19”
.
Creating billing document ➔ VF01
Billing document is created with reference to delivery document as below
See the below pricing conditions along with rebate amount

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and accounting document has been created automatically.
Go to change mode of billing document ➔ VF02
Click account document

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Now we need to do customer payment for this invoice.
Receipt of money- Customer Payment ➔ F-28
Enter required input data and then click enter button

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➔ Payment is completed.
We have successfully completed Order to cash process.

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Condition contract Actual settlement
Run SAPGUI transaction WB2R_SC – Settle Condition Contracts
Click system will give pop up as below

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Settlement Results as below screen shot
Credit memo “8” has been created with reference to sales rebate condition contract 3000000004
Credit Memo
In WCOCO, you can see a credit memo created with relevant values as below

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After settlement running the ZRS1 ➔ 15% Rebate condition in the credit memo
In the Header conditions, you will find the Rebate condition we had created as part of the condition
contract as below
Accounting document “1600000001” posted with reference to credit memo “0000000008”
Accounting document is posted

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Business Volume ➔ WB2R_BUSVOL
As you can see below, business volume 1.379.999,38 is updated against the condition contract
I have done rebate settlement for SD module side and I have prepared config document for our
reference and update to all my team members.
If I missed any step please revert me anytime.

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Important transactions for Settlement Management

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Settlement Management Report
WB2R_BVDETAIL ➔ Detailed Statement for CC Settlement
Important Transactions - Settlement Management
WCOCO Contract settlement Creation WB2R_SV_CORR
Correct Supplier Contract
Settlement
WB2R_BUSVOL Business Volume for Contracts WB2R_UAC
Update Accruals Customer
Settlement
WB2R_BVDETAIL
Detailed Statement for CC
Settlement WB2R_UAV
Update Accruals Supplier
Settlement
WB2R_BVDETAIL_IDA
Detailed Statement CC
Settlement IDA WB2SEL_AB
Settle. Mgmt. Doc Selection
(seltool)
WB2R_CANCEL_DOCS Cancel documents for contracts WB2SEL_AB_LST
Settlement Management
Selection tool
WB2R_DOC_ENTRY
Contract Settlement: Manual
Entry WB2SEL_AC Accounting Document Selection
WB2R_EXTENSION Condition Contract Extension WB2SEL_IV Inbound Invoice Selection
WB2R_IMG Customizing Contract Settlement WB2SEL_MD Material Doc. Selection (seltool)
WB2R_RAC
Reverse Accruals Customer
Settlement WB2SEL_OD Delivery Selection (for seltool)
WB2R_RAV
Reverse Accruals Supplier
Settlement WB2SEL_PO Purchasing Document Selection
WB2R_SC Customer Contract Settlement WB2SEL_SHD Shadow Selection (for seltool)
WB2R_SC_CORR
Correct Customer Contract
Settlement WB2SEL_SI
Customer Billing Document
Selection
WB2R_SETTL_CAL Settlement Calendar List WB2SEL_SI_LST
Customer Billing Doc. List
Selection
WB2R_SETTL_VAL_IDA
Settlement Amounts CC
Settlements WB2SEL_SO Sales Order Selection (for seltool)
WB2R_SV Supplier Contract Settlement WB2SEL_TC
Tr. Contract Selection (for
seltool)
WB2R_AB_DOCS
Settlement Mgmt. Docs for
Contracts WB2SEL_Z1 Selection for Add-On z1
WB2SEL_Z2 Selection for Add-On z2 WB2TEW_FULL
Dummy for ALV Variants
(Fullscreen)
WB2SEL_Z3 Selection for Add-On z3 WB2V Messages for Supplier
WB2TEW_HEAD Dummy for ALV Variants Header WB2TEW_ITEM Dummy for ALV Variants Item

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Enter credit Memo number “8” and execute it
Report output
WB2R_BVDETAIL_IDA ➔ Detailed Statement CC Settlement IDA

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Report Output

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WB2R_CANCEL_DOCS ➔ Cancel documents for contracts
Report Output
Example purpose

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WB2R_DOC_ENTRY Contract Settlement: Manual Entry
Click create
This is manual entry for contract settlement document

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WB2R_EXTENSION ➔ Condition Contract Extension
Click execution button then your contract will be extended as below output

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Our Condition Contract 3000000004 extended: Contract 3000000005 with validity 24.02.2020 to
31.12.2020
Contract is created as below
WB2R_IMG ➔Customizing Contract Settlement

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Entire config in single screen
WB2R_RAC ➔ Reverse Accruals Customer Settlement

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Report output
Output

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WB2R_RAV ➔ Reverse Accruals Supplier Settlement
Input screen
There is no output results for this report
WB2R_SC_CORR ➔ Correct Customer Contract Settlement
Output

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WCOCOALL ➔ All contracts list
Report Output Results
We can release, Lock, Delete, Prepare Archiving, reverse in single screen like delivery documents
monitoring like “VL06”

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WCOLI ➔ Condition Overview
Input screen
Output

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We can see overview of all the contracts in single screen
Settlement Management Tables
Table Name Description
WBRC Complaints in Settlement Management
WBRCCF Complaints in Settlement Management - Chan
WBRD Bank Data Suspense Account
WBREGISTRY Registry ABAP Workbench
WBRF Document Flow for Settlement Management Doc
WBRFN Document Flow of Reference Document to Set
WBRK Settlement Management Document Header
WBRL Item in Document List
WBRP Settlement Management Document Item
WBRR Settlement Document List Data for Settlement
WBRRE Settlement Document List Data for External