Hi everyone and welcome to microlearnings.

With this microlearning we will cover

sales rebate processing using the functionality of condition contracts and the
corresponding settlement. My name is Jonas Klemm. I am an SAP S/4HANA Cloud
business processes consultant with a focus on the sales line of business. The
structure of this training will be divided into two main areas. First, we will have
a look at a typical business process scenario and explain, based on real project
implementation experience, how sales rebates are used and what kind of special
requirements can occur. After the context has been given, the second part of the
microlearning will show you directly in the system how to create the sales rebate
agreement, highlight important price relevant information and finally triggers a
settlement for a completed period. Many companies today agree with our customers
that based on a given volume that occurs between both partners, a certain amount is
reimbursed at the end of a period. This is called bonus agreement. The example
discussed in this video is about a company that has defined a bonus agreement with
a customer crediting 1% of the volume across all sold products at the end of the
defined period. Further, it was agreed between both companies that the freight
costs that have been incurred in the calculation should not be included in the
volume taken into account. As both parties agreed on these conditions, the customer
orders different products from the supplier over the specified period and bonus
relevant revenue is updated in the system based on the generated billing documents.
At the end of the period, the supplier checks the relevant sales via provided
standard reports and can initiate the settlement run so that the customer receives
the credit memo. In the following demo, the shown steps are now performed to show
the condition contract capabilities of the S/4HANA public cloud. First, a sales
rebate agreement is created in the system. Here, information relevant to the
processes is entered such as the customer, the corresponding sales area, business
volume selection criteria and the corresponding conditions. Further, the challenge
is to realize the requirement that the valuation basis must be determined without
including the freight costs. After the agreement has been approved and released,
the bonus relevant sales can be checked. For this, of course, invoice documents
must already exist that are taken into account by the condition contract.
Subsequently, the condition contract is settled and the credit memo is generated.
Please note that in order to not expand the scope of this microlearning, but to
focus on the basics and the additional function of allocating relevant price
subtotals, this training does not cover bonus accruals or pricing scales. As the
business context was explained, let's go into the system and have a look how this
scenario can be set up. I am here logged in my S/4HANA public cloud system and have
my sales rebates launchpad available. First of all, I will go inside the app Manage
Condition Contract Sales Rebates and I will click on Create. For this demo, we will
use the first contract type and by selecting that, the UI of the condition contract
will be opened. Now we first of all enter the relevant customer and we also define
directly the validation period of our contract. In that example we say that this
contract is valid for two months, so I will enter the 1st of January 2023 until the
end of February 2023. Next, I have to enter the relevant sales area. So here it
will be 1010, 10, 00. The next important part would be the business volume
selection criteria. As the requirement in our process was to include all sold
products to that customer, we have to enter the customer as the relevant criteria.
For that I can click on the plus button which opens all possible elements and here
I will select the customer and maintain the value. Then we will navigate to the
settlement calendar and for this example we will say that we only do one final
settlement at the end of the period, so we credit the customer at the end of
February 2023. For that, I can add the final settlement by clicking on the plus
button, specifying the date and the corresponding settlement type. As we specified
the header of the contract, we now have to enter of course the relevant conditions.
In our process description, 1% was agreed with the customer without any scales. So
we will add the condition type by clicking on the plus button and using the
condition type RES1. Afterwards we can click enter and maintain the percentage as
this is the default calculation rule. If relevant, this can also be adjusted to a
quantity or to an absolute value. You can also see that the standard validity is
directly used from the header. Now all of the relevant information was entered to
release and save the condition contract. Now there is only one requirement left we
did not cover while setting up the condition contract which is about the relevant
calculation basis excluding the freight costs. In order to explain that, we first
have to look at the pricing procedure set up. For that, we will go inside the
configuration of the system, using in that example the app Manage Your Solution.
Depending on your system it could be the case that you would have to enter it via
the CBC, the central business configuration. In the application area sales and then
in the price management section there is the SSCUI set pricing procedures which I
will select now. We will have a look at the standard pricing procedure for normal
sales orders in a German company code in standard this one starting with Y. As we
mark it and go to the control data, we can see that there are two net values, net
value 1 and net value 2. Also we see that freight costs are not included in net
value 1, so the value of this subtotal can be used for the relevant basis in our
scenario. So the question now is how do we set up the condition contract to use
exactly this entry and for that we can see the column Subtotal where a 2 is
maintained. If we go back to the condition contract and navigate to the sheet
Settlement Date, which we skipped while creating it at the beginning, we can select
exactly this subtotal, too. And now the condition contract is exactly linked to
that subtotal using it as a relevant calculation basis. As you can define your own
pricing procedures and assign the subtotals based on your requirements, this can
become a very powerful and flexible tool for your settlement logic. Now let's
assume the company did a lot of business with the customer and as the period end is
reached we want to settle the contract. it would be interesting to see the basis
for the bonus settlement. We can use a standard report to check the business
volume. Here we can for example enter directly the condition contract number or we
can also filter for the customer. As I know the number of the contract, I will
enter it directly. Here you have either the possibility to check the aggregated
volume for all created billing documents or you can also have a separate view
seeing the relevant amounts based on billing document level. For now let's have a
look at the cumulative volume. You can see that the condition contract recognizes
some values, which will be used during the settlement run. If we go back and select
a separate view and single record, we receive further information based on the
billing document level. In that example there are three billing documents and by
navigating to the right we can see the different subtotals of the pricing
procedure. As you can see the sum of the net value consists of subtotal 2 and
subtotal 4 which includes the value of the freight costs. As all relevant documents
are recognized by the contract the rebate agreement will be settled. In order to
initiate the settlement run I will open the app Settle Condition contracts Customer
Contracts. In that selection I first enter the settlement date which was entered in
the condition contract and was end of February 2023. Then I open the drop down menu
of the settlement date type and the final settlement is selected by leaving the
field blank. Finally I will enter directly my condition contract in the selection
and switch the run type from check run to live run. After the contract was settled,
I can navigate to the created settlement document and have a look at the included
products with their corresponding values. As we reach the end of the demo, let's
conclude the content and topics of this microlearning. First, we considered a
possible scenario between a supplier and a customer which provided the framework
for our test case. Then a condition contract was created in the system with all the
data relevant for billing. Standard reports were used to check and display the
business volume incurred so that the document was settled at the end. Furthermore a
deep dive was made into the pricing configuration to show the link between
subtotals and the condition contract. Now thank you for watching this
microlearning. For further learning, be free to check out the openSAP courses.