SAP S/4 HANA also revolutionizes contract management for extra-invoice discounts and rewards. The CCM, Condition Contract Management, concerns the way in which premiums and refunds are managed off-invoice, paid retroactively to the customer on the basis of a contract entered into, for a given price condition on a specific product or product families, during a period of activity. The bonus, which is based on the sales volume of the customer for a predefined period of time, is settled by credit notes at the end of the year (or other types of liquidations for the management of the registration of invoices passive for GDO customers) and is defined "retroactive" because it may happen that the agreement or contract is concluded after the beginning of the period of validity of the contract.
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With the old SAP ECC system, setting and calculating rebates retroactively and compiling the database could be complex, in case of incomplete configuration before the start of transactions. SAP S/4HANA simplifies this activity for discounts for both customers and suppliers with the new management and settlement functionality of contracts on terms.
Managing this process with the new and more powerful "engine" of SAP S/4 HANA becomes much faster, more dynamic and more interactive. With the previous system, once created the contract, in order to be able to view the volume of business of the customer it was necessary to launch a specific program, intended to resume all invoices attached to the contract. With HANA, however, everything happens dynamically, automatically, once entered the contract document. A "light" system, easy to use and consult: if before, in fact, it was necessary to draw up a vbox table with the data related to all invoices, with the new system this need disappears completely making the consultation of invoices simple and fast.
The removal of the vbox table also has another advantage for the operator: in case of creating new types of discount conditions, you will not have to restructure the various fields of the table, because the process is automatically updated. The HANA database now directly accesses the billing documents and calculates the accrual values based on the accrual conditions of the turnover for conditional contracts. For the calculation of the volume of business with SAP S/ 4 HANA there is an improvement in the ability to manage multiple combinations of data for the determination of volume suitable for more complex market strategies such as those of GDO customers. In addition, no credit note request is created, which is a further simplification. The settlement document shall directly create a credit note together with the corresponding financial accounting documents
Architecture and databases, with SAP S/4 HANA, are much more powerful and more targeted. While in SAP ECC the bonus management was hooked to the sales or purchases module, with HANA is linked to the agency package. So it’s independent of other processes, making invoice processing faster and more dynamic. There is therefore no longer a different procedure for the customer contract or the supplier contract. Other advantages are represented by the possibility of a much more configurable price scheme, because the path of sale and liquidation are different, and by the multiclient management. In other words, if more than one customer falls under the same bonus logic, the operator has the option of creating a single contract to manage the rewards of more than one customer.
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