Commission Settlement in SAP S/4HANA

SAP CCM: Settlement Logic for Your Commission in SAP S/4HANA

Condition Contract Management (CCM) in SAP S/4HANA is SAP's tool for mapping, controlling and settling internal and external commission agreements. Thanks to its flexible logic, CCM can be adapted to your sales strategy on a customer-specific basis.

How Did Commission Management Work in SAP ECC Previously?

Since ERP 6.0 EHP 6, SAP has a standardized solution within SAP ECC for mapping commissions, namely SAP Condition Contract Settlement (CCS). Nevertheless, many SAP customers have mapped their commission management using their own programmed solution either within or outside of the SAP environment. However, these solutions are often prone to error and involve a high degree of manual effort. With SAP S/4HANA, SAP now offers SAP Condition Contract Management – an optimized function developed from SAP CCS.

What Is Condition Contract Management?

Condition Contract Management is part of SAP Settlement Management, which, in turn, is based on SAP Agency Business (LO-AB) and also includes the functions of SAP Compensation Management. With the introduction of SAP S/4HANA, this module migrated to S/4 Core and is now the tool for all financial settlement processes within a company.

What Requirements Must Be Fulfilled Prior to Using Condition Contract Management?

Thanks to the addition of SAP Settlement Management and Condition Contract Management, all logic is now available directly in S/4 Core – no additional SAP licenses are necessary.

What Features Does CCM Offer for Commission Processing?

• Basis: Condition Contract
The condition contract within Condition Contract Management represents the commission agreement. All master data and settlement logic for a commission contract with an internal or external business partner is defined here.

• Flexible Business Volume Data (Also Third-Party Systems)
CDS views are the basis for settlements in SAP CCM. These comprise known standard SAP tables and can be extended as required to include partner functions or customer-specific Z fields, for example.

• Individual Settlement Logic
It is possible to define a settlement logic for each commission type or commission agreement. Flexible and efficient settlement takes place via SAP Settlement Management in individual or collective documents. The set of rules for the rebate basis can be defined individually, with business volume pools, scale pools and incremental rebates taken into consideration here. These can therefore be adjusted to company-specific incentives on a customer-specific basis.

• Automated Accrual Posting
SAP CCM offers a high degree of flexibility in relation to accrual postings and therefore the option for integration into procure-to-pay or order-to-cash processes, depending on the respective commission basis. In addition to classic accrual postings with goods receipt or billing documents, an isolated accrual can also be posted to this business volume base in SAP CCM, which is still perfectly integrated into profitability analysis, for example.

• Changes to Commission Agreements
Changes to commission agreements can be maintained in the system at any time. The system is set up in such a way that accruals and partial settlements can be updated at any time and no unnecessary document cancellations occur. Your accounting can therefore be updated automatically at any time.

• Integrate External Settlement Documents
In commission settlement, settlement documents are often created by the actual commission recipient and must then be updated in the company's SAP system. Here, CCM provides the option to assign external settlement documents to your commission agreements and to reverse accruals accordingly.

What Are the Benefits of CCM?

Fully Transparent Commission Settlements
The condition contract is SAP's new single point of truth for your commission agreements. All relevant commission settlement data is documented here (for example, commission condition, defined settlement cycle and defined commission basis). Each settlement for the condition contract is shown seamlessly in the document flow. Furthermore, any adjustments to the contract can be tracked in the change history.

Automated Commission Settlement
SAP CCM provides the option to automate all settlement processes by means of a settlement calendar for each condition contract. This may involve accruals or settlements. It is also possible to automate printout processing and e-mailing of settlement documents.

High Degree of Flexibility in Settlement Logic
The commission settlement within SAP CCM is flexible and user friendly. SAP provides a high degree of flexibility in terms of the layout of condition contracts and their settlement in the standard logic. If this logic does not suit your commission management, SAP provides the option to add BAdIs to the standard logic wherever relevant.

Continuous Development of Logic by SAP
SAP Condition Contract Management (CCM) is under continuous development by SAP. Each release will therefore contain new functions to further improve the flexibility of commission settlement.

With Condition Contract Management, you can flexibly adjust your commission mapping to your sales or purchasing management. SAP's settlement management logic can achieve transparent and flexible commission settlement in your S/4HANA system!

Do you want to achieve greater transparency and flexibility in your commission settlement? We are happy to advise you on every aspect – from requirements analysis through to technical implementation and support.