SAP Rebate Processing in Settlement Management

SAP Rebate Processing in SAP S/4HANA

Many companies have used their SAP ECC systems to set up complex rebate agreements that are no longer efficient from a creation and settlement perspective and are therefore non-transparent. SAP Condition Contract Management (CCM) in SAP S/4HANA provides integrated, transparent mapping of any rebate agreement, thereby improving efficiency across the entire process chain.

What is Condition Contract Management?

In ERP 6.0 EHP 6, SAP introduced Condition Contract Settlement (CCS) as an alternative to the existing rebate settlement functions in SAP MM and SAP SD. In SAP S/4HANA, SAP CCS is now known as Condition Contract Management (CCM) within the new SAP Settlement Management module. CCM provides a range of CCS-based functions for the administration and settlement of rebate conditions on both the supplier and customer side.

What Features Does CCM Offer?

Flexible Business Volume Data via CDS Views/Third-Party Systems
Determination of business volume data from known SAP standard tables or integration from third-party systems into the rebate basis. CDS views are SAP's leading tool for the rebate basis. A wide range of standard views can be customized to meet specific customer requirements.

Individual Settlement Settings
Determination of individual settlement settings for each contract whereby the actual settlement process takes place via SAP Settlement Management in individual or collective documents. The set of rules for calculating the rebate basis can be defined individually. Business volume pools, scale pools, inclusions and exclusions can be taken into consideration here.

Automated Accrual Posting
In addition to the accrual posting from goods receipts (vendor volume rebate) or invoices (customer rebate), CCM also provides the option of delta accruals.
The accruals are automatically posted in SAP FI/CO and reversed accordingly when a partial/final settlement is created. Any differences can be clarified or resolved on a system basis.

Changes in Rebate Agreements
In the event of changes to the rebate agreement, accruals can be automatically recalculated, which completely eliminates the need to cancel existing contracts and set up new contracts. This automatic recalculation ensures that the current status is always reflected in the system.

Integration of External Rebate Settlements
CCM provides the option of using passive settlement. Here, the invoice data contained in the external settlement document is entered in the relevant condition contract and automatically posted in SAP FI/CO. The posted accruals are also reversed accordingly.

What Are the Benefits of CCM?

Fully Transparent Rebate Settlements
The condition contract is the single point of truth in SAP's new rebate settlement. All relevant rebate agreement data can be found here. Each settlement relating to the condition contract is displayed seamlessly in the document flow.

Automation of Rebate Settlement
Every settlement process (delta accruals, delta settlements, partial settlements, final settlements and accrual reversals) can be automated and, if required, printed or sent by e-mail (archive connection possible).

High Degree of Flexibility in Settlement Logic
The rebate settlement in SAP CCM is very flexible and user-friendly. In addition to this flexibility within settlement documents, information from other modules can be accessed at any point (expansion of document information). Standard functions can also be used to intervene in the logic as required. This can be done on a customer-specific basis.

Integration of Rebate Settlements into Order-to-Cash or Procure-to-Pay Process
Companies can use SAP Condition Contract Management to simplify their business processes and, in turn, make rebate settlement less complex.

Continuous Development of Logic by SAP
SAP Condition Contract Management (CCM) is under continuous development. Each release will therefore contain new functions to further improve the flexibility of rebate settlement.
Incidentally, thanks to its integration into SAP Core in S/4HANA, there are no additional license costs.

XEPTUM has a broad range of project experience in settlement management (LO-AB, CCS, CCM) within different industries and execution of various CCM implementations based on different custom developments.

Interested in learning more? Does your company want to achieve greater transparency and flexibility in rebate processing? Our experts are happy to advise you on every aspect of rebate processing – from requirements analysis through to technical implementation and support.