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hello all and welcome to this session in this session we are going to talk about the rebate processing in sap s4hana so what are rebates rebates are the subsequent discounts which can be given to the customers for example if you agreed with the customer that whatever business you will do with a particular customer for example if you have done the total billing of 100 000 USD in a month uh you will be giving maybe five percent discount at the end of the month so whatever is the total business volume on that five percent you will be giving the credit memo to the customer so if that is your agreement and you want the system to automatically calculate the rebate based on the total sales which has been done to the customer you can use repeat processing in sap s for Hana previously in sap ECC rebates was handled using a separate component uh so if you already worked on sap ECC you might be knowing the transaction ports vob1 and the other transactions which are related to the old functionality those transaction codes and that functionality is no more available in saps for Hana rebate processing works with the new component called as settlement management and under that it works on the condition contract management okay so I'll just give you the glimpse of how exactly this functionality looks like So within Logistics you will go to settlements management okay this is a as I told you this is a new component within the settlement management we are talking about condition contract management within condition contract management this is where you will be able to create the contract okay so this is a transaction code wco to create a contract and then at the end of the month or at the end of the quarter whenever you want to perform the settlement you can do the settlement through this particular load now you can see it can be the contract with the supplier it can be the contract with customer in this session I'm talking about the contract with customer okay but the same functionality is available for contract with suppliers also so let's try to create a contract let me tell you how the contract is created normally so you'll open this transaction code wco and from here you can see there is a create button so you can click on the create button now there are n number of contract types which are provided by sap as per the base practices okay so depending upon what suits you from the sales side from the purchase side there are n number of contracts but in this example what I'm showing you I am showing you the rebate which we are providing to the customer on the total business volume which is Bill to customer okay so depending upon how much is already built to the customer I want to provide some subsequent discount at the end of the month so for that the standard one I'm using 0s01 this is if you even follow the sap uh best practices you will find that this is what they have provided 0s 0 1 as a condition contract type just enter this and click on enter okay and now here you need to specify the dates so what is the contract validity so let's assume I want to tell the system that this contract is valid from uh maybe let's say 10th of April 20 23 to let's say 38th of April 2023 okay you will enter the customer with whom you are having this contract so uh I will enter one of the customer here okay in my case I will use my sales organization which I already created okay and I'll go with this particular customer right uh now there are some other details that you need to mention for example all these things are optional uh depending upon your need you can enter those details but otherwise you can just proceed with sales organization so I will go with organization btdo pm and PK this is my sales area okay and then uh in the business volume selection criteria this is where you will be telling the system that what would be the criteria based on which system will calculate what is the total business volume how much was the total sales so here you will be able to click on this new line and system will ask you various different criterias okay so you want all the sales to be considered for the customer or you want to consider all the sales for the particular sales organization or you want to consider a particular material even if you come down there will be the combination of material and you can have multiple combinations okay so for example if you want to say one customer and one material so if you enter two lines whatever transactions are done what your Billings are done for that particular combination of customer and material that would be treated as a total business volume okay so what I want to tell the system is I want to tell the system that I want to consider whatever sales I have done against this particular material okay and from win to win so I want to consider only that sales which is done from 10th of April 2023 to 30th of April 2023 okay in which materials so I can select the materials from here so I already created some scenario I'm just using that so I'll use this biscuits 4 here okay this is a material which I want to include in my contract now this uh we are done for the business volume selection criteria the next is settlement calendar settlement calendar means when are you going to perform the settlement when are you going to provide this discount to your customer so here also uh there are different options since our contract that I'm creating is only for one month within the month it is getting over and that is the reason there is no need of accruals or partial settlements normally one-time settlement we will do but if you have a contract let's say for one year and you want to perform the settlement at the end of every month okay if you want to create a credit memo at the end of every month then throughout the contract life cycle every month you will be able to do the partial settlement and towards the end of that particular contract you can do the final settlement okay so if you click on this system will give you the option what kind of settlement you want to do whether you want to do the final settlement one-time settlement or you want to do the partial settlement at the end of every month or you can also do the accruals accruals means if you are not creating the credit memo at the end of the month but you know that this is a amount which is accumulated for that particular customer then you can show as accruals also okay in our case I'm taking the simple example but yes if you uh if you are working on the project and you need our expertise in this particular thing we can definitely help you from the configuration point of view also okay so you'll go for final settlement and you need to enter the settlement date so in our case I'm using the settlement date as 30th of April 2023. okay so now settlement calendar is also available now I'll go to the lines okay these are the conditions where I need to tell the system how much percentage I am going to provide as a subsequent discount so you will again click on this plus button now these are some of the condition types which are pre-delivered by sap okay again through the configurations uh we can if you want we can change those condition types and we can create our own condition types but these are the ones which are pre-delivered by sap so for rebate I will use res1 calculation type again whether you want to give the fixed amount or you want to give the discount as per the different quantities okay whether you want to provide the discount on the total gross or weight amount so ing to whatever is your criteria okay so I'm keeping it simple percentage which means whatever will be the total sales let's say 10 of that will be given as a a subsequent discount to the customer but if you want to even create the scales also that is also possible so you can say if a customer has bought this much worth of material I'll give him this much fixed amount if the customer has bought more than 10 000 but less than 50 000 then I'll give this much fixed amount if the customer has done the sales for more than 50 000 then I'll give this much fixed amount so you can create the scales also okay I'll just click on percentage and I can enter the rate here as let's say 10 percent so whatever is the total sales in that particular month I am going to provide 10 percent as a rebate to that customer okay that's all so we entered all the details in the contract we specified which customer what is the contract uh validity for which sales organization what would be considered and when the settlement will be performed okay now how much percentage we want to provide the very bit once you are done with this you need to release this contract okay either you do it before saving or you can do after saving also I will release it first and then I'll save it so now this condition contract has been created this is a condition contract number if you want to display you can just go to other condition contract enter the contract number here press enter and it will show you the condition contract that has been created so as of now the status of this contract is just created it has we are still not done any subsequent transactions with respect to this this contract now what will happen throughout the month uh this customer will keep on placing the orders uh we will keep on delivering the materials we'll be keep on delivering the or willing the customer so let's assume a customer has placed the order the normal sap SD cycle so I will go to transaction code va01 and assuming this customer has ordered in this particular sales organization uh let's take this as our customer it should be the same customer right otherwise the system will not pick that value okay this is a normal sales cycle I don't need to explain this I will take the same material for which the rebate is applicable let's assume 10 quantity okay I'll enter my plan and I'll enter the amount okay let's say 1000 per unit okay so everything seems to be okay let's try to click on save to generate the sales order so sales order number has been created 183 we need to perform the delivery let me see whether this order status is confirmed so we can do the delivery on 25th of April only okay so this might be because of the scheduling activity Transportation time and all system has automatically determined that we can only deliver this material to the customer on 25th of April so we will go ahead and we will do the delivery okay but definitely because it is confirmed on 25th of April we cannot do it before that our shipping point enter okay so you'll go to picking storage location how much quantity we are delivering we are delivering the full quantity and I am performing the PGI okay so now uh our outbound delivery has been completed and we are ready with billing so we can bill to the customer I'll go to transaction code vf01 against this delivery document I'll perform the billing so you can see I'm billing the customer for ten thousand okay so I just uh fast forwarded the sales cycle but if you are interested to understand the complete sales cycle what is sales order uh delivery so I have created the video for also for that o2c video you can search on YouTube and you will be able to see uh the full SD cycle along with the integration of FR video is already available okay so let's try to click on Save and generate this billing document just ignore this warning messages okay so finally you can see document has been saved but due to some reason system is not able to generate the accounting entry okay let's verify what is wrong why the system is not able to generate the accounting entry so again the normal sales cycle we will go to change billing document and we will try to release this document to accounting against warnings uh okay the error is this customer I only created in sales it was not created in fi that is the reason system is giving this error no problem I'll just make sure that this customer is also extended to our company code so for that you will go to BP because this is sap s4hana I think it is not copied properly foreign number so as of now it seems it is only created for flcu01 we need to extend this customer to flcu 0 0. which is for the company code okay company code data and here our company code is Brit I need to provide the reconciliation account let's assume this is my domestic customer and click on Save okay this is uh the test example don't think that this is a real example you this is just one student suggested to use this particular name that is the reason we are using it but otherwise this is a complete test system okay now uh we were getting the error at the time of billing because this customer was not created let's now go to vf01 and try to perform the I think the delivery document was edit if I am not wrong yeah it was already created so I'll go to vf02 only accounting was pending so this is our accounting document and if I try to release it now okay so you can see document has been saved which means the accounting entries are created okay normally as if you want to see what is the counting entry you can go to this accounting accounting documents are generated and you can see customer has been debited and revenue account has been created okay fine so this was the sales cycle now let's go back to our condition contract management and see how we will be able to give the discount subsequent discount of this 10 000 total sales volume to the customer so first of all again you will go to Logistics within Logistics you will go to settlements management condition contract management and here we already understood the master data where we created the contract now we are going into the settlement within settlement you will go to customer because this is a customer sales document or even before that if you want to see the report like how much value is already accumulated for this particular contract so you can go to this report wb2r underscore business volume so if you enter your contract number and you click on execute what is the business volume you can see the business volume is ten thousand okay out of this ten thousand we are going to provide 10 subsequent discount which means if I proceed to the settlement system will give credit memo of 1000 to this customer which is 10 percent of the total business volume that customer has done in a month okay in this example I took Just One Billing document but throughout the month if there are n number of billing documents whatever will be the total sales volume based on that system will be calculating the subsequent discount okay now once this is done you can go back and you can do the actual settlement so for that you will go to customer and you will double click on this settlement wb2r underscore SC okay here you will enter the settlement date make sure that the settlement date is same as what you have entered in the contract creation okay in the settlement calendar the condition contract number and if you want to do the test run you can do the check run first okay so this is a test run but if you want to do the actual run you need to come here and you need to perform the live run let's carry out the check run first so execute just to verify if there are no errors you can see one condition contract settlement date settled successfully which means there is no error okay everything is green we can go back and we can remove this to live run and perform the execution okay so condition contract settlement date settled successfully which means now you will be able to see the accounting document which has been created okay so this is the credit memo which is created if you want to see this click on this contract it will take you to the contract screen and from contract screen you can see for this particular contract the final settlement is already performed and this is the credit memo which has been created for 1000 INR which is 10 percent of total business volume okay so I hope you understood how rebate processing is handled in sap if you want some help in the project wherever you are getting stuck and you want our involvement you can definitely reach out to us thank you bye