With the introduction of SAP S/4HANA, we see the end of classical rebate processing in sales and purchasing, now replaced by condition contract management, itself part of settlement management. Condition contract management has been available in the Global Trade component for some time, but in practice sometimes tended to occur more in sectors like trade, consumer goods or pharmaceuticals, where very complex payment models often prevail.
Classical rebate processing in SAP is characterized by a very limited functional scope and only a few extension options. Malfunctions are difficult to identify, and their corrections can require a lot of effort.
Condition contract management is the exact opposite in this regard. Settlement management is altogether very complex and offers a plethora of functions. There exist numerous entry points for additional developments, too. The condition contract consolidates all agreements for both the customer and the supplier, combining all information required for settlement at a central point. For example, you can specify the so-called sales base through simple customization.
Document settlement occurs periodically through the condition contracts in separate documents, independently of customer invoices. The use of provision conditions in individual invoices is still possible. Usually however, you would process them through separate provision documents from the condition contract.
If you choose the Greenfield approach ("new implementation"), the roadmap for rebate processing becomes clear. When introducing the new system, you will have to implement the condition contract management immediately as well. You can no longer use the previous rebate processing.
If, on the other hand, you choose the Brownfield approach of "system conversion" to S/4HANA, you'll have to take a few things into consideration beforehand: after system conversion is completed you can no longer create any new rebate agreements. You can only use the previous rebate agreements through the end of the validity period. Hence you could in principle schedule implementation of the condition contract management to follow the system conversion, and, during the first period with the converted system, still work with classic rebate processing in a limited way.
As part of the system conversion you can also migrate existing condition tables to condition contracts, for which the SAP migration programs are available. Many of the previous rules & regulations can be significantly simplified in condition contract management. In many cases, a purely technical migration will not sufficiently consider this simplification potential. We therefore recommend analyzing and revising these rules & regulations.
As already mentioned, condition contract management has been available for some time as a component of Global Trade. This innovation can therefore be introduced even before system conversion. You'll find a detailed overview of the necessary system requirements and business functions to be activated in OSS note 2497386 – Required business functions for settlement management.
This cannot be determined in a general way, since the approach must be decided for each system and each project individually. In any case, condition contract management allows you to put these processes on a new foundation and actively arrange them.
We'll gladly support you in your decision with our experience and expertise.
The process-oriented project approach Scheer performanceREADY developed by Scheer enables secure implementation in "time, quality & labor". As an experienced SAP partner and specialist for innovative SAP solutions, Scheer advises customers on their way to a sensible and efficient deployment of SAP S/4HANA as well as SAP Cloud solutions. With its prefabricated Scheer performanceREADY process reference models, Scheer offers customers best-practice content from various industries that goes beyond pure processes and thus provides a plethora of automation options for transparent and efficient project implementation.
Scheer has been offering its customers qualified support on the way to more efficient business processes and successful IT projects for many years. Focus Money certified this competence in 2019 on the basis of a study of the 10,000 largest companies in Germany. Scheer was named industry winner and "Digital Champion" of management consultancies.
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