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May 7 – 9, 2019
Use of Settlement Management and Combined CO-PA for Gross-to-Net Revenue Analysis
V I J AY PA L , Senior Consultant, Clarkston Consulting
V I C S I S O N , Director, Clarkston Consulting
Session ID # 84230
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About the Speakers
V I J AY P A L
• Senior Consultant, Clarkston Consulting
• Order-to-Cash Process Lead
• First time ASUG Attendee
V I C S I S O N
• Director, Clarkston Consulting
• Over 20 years SAP Finance and Controlling Experience
• Former NBA Draft Pick
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About Clarkston Consulting
* As measured by:
Success measured by client and employee satisfaction
Partnership model, organically
grown, and privately held
Leading management and
technology consulting firm
Headquarters in Research Triangle Park, NC, with offices across the U.S.
Serving global companies since 1991
Focused on the life sciences and consumer products industries
K E Y M E A S U R E S O F
C L A R K S T O N ’ S S U C C E S S :
70% repeat clients and referrals
18-year average client satisfaction rating of 97%*
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Key Outcomes/Objectives
Settlement Management is the key solution within S/4 HANA to handle subsequent settlement of Customer and Vendor rebates.
Condition Contract Management provides a central, standardized solution for administration of supplier and customer conditions.
Accruals can be calculated and posted as a statistical condition in an Extension Ledger in FI.
Pricing conditions can be mapped to value fields in Combined CO-PA to provide detailed Gross-to-Net Revenue analysis.
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Agenda
S E T T L E M E N T M A N A G E M E N T
C O N D I T I O N C O N T R A C T
P R O C E S S
C O M B I N E D C O - PA
E X T E N S I O N L E D G E R
G R O S S - T O - N E T A N A LY S I S
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Settlement Management
Significantly reduced data footprint and memory
Settlement Management is part of S/4 Core, No additional activation is required.
Significantly Enhanced Functionality (SAP Settlement Management) for S/4HANA Sales and Procurement
More Flexibility as Rebate Index needs not to be rebuilt when new customers become eligible for rebates and previous business can be retroactively considered.
Settlement Management functionality supports all types of settlement processes, including core business processes that need to be fully integrated in the OTC cycle or within in a PTP scenario, such as condition contract settlement (rebate settlement), as well as standalone processes, whereby you provide special financial settlement services for your business partners.
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S E T T L E M E N T P R O G R A MBusiness Volume Determination | Calculation via Pricing
Settlement Document creation
Condition Contract Process
S E T T L E M E N T D O C U M E N T S
D ATA S O U R C E
Sales Orders | Purchase Orders | Deliveries | Invoices | Goods Movements Settlement Management Documents | External Systems | POS Data
C U S TO M I Z AT I O NSplit Criteria’s Header and Item Level | Condition and Scale Base
Business Volume Table | Transfer Rules for Document creationSettlement Calendar
Business VolumeSelection Criteria
Detailed StatementSettlement Information
Document CollectionOutput | FI/CO
Messaging
C O N D I T I O N C O N T R A C T
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Condition Contract – Sales ProcessM A I N TA I N C O N T R A C T S
R E L E A S ES A L E S P R O C E S S
D O C U M E N T S E T T L E M E N T
▪ Condition Contract Type
▪ Customer Data▪ Organizational Data▪ Business Volume▪ Settlement Calendar▪ Select condition
▪ Condition Contract Type
▪ Customer Data▪ Organizational Data▪ Business Volume▪ Settlement Calendar▪ Select condition
▪ Sales Order▪ Outbound Delivery▪ Post Good issue▪ Create Billing
Document
▪ Partial Settlement▪ Final Settlement▪ Delta Settlement▪ Delta Accruals
C O N T R O L
▪ Monitor Contracts, Conditions, Settlement Calendars, Business Volume, Settlement Documents
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Condition Contract E X A M P L E
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Business Volume for Condition Contracts
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FIORI APPs for Condition Contracts Example
F I O R I A P P G U I T R A N S A C T I O N C O D E R O L E ( S )
Maintain Contracts WCOCO Contract Manager/Sales Manager/Purchasing Manager
Display Business Volume WB2R_BUSVOL Settlement Clerk/Purchaser/Billing Clerk
Settle Condition Contracts (Customer)
WB2R_SC Settlement Clerk/Billing Clerk
Settle Condition Contracts (Vendor)
WB2R_SV Settlement Clerk/Purchaser
Display Settlement Documents
WB2R_AB_DOCS Settlement Clerk/Purchaser/Billing Clerk
Display Contracts WCOCOALL Sales Manager/Purchasing Manager/Contract Manager
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Cost and Profitability Analysis (CO-PA)
PR
OD
UC
T
U S
CP P R O F I TA B I L I T Y
S E G M E N T
F I G U R E 1
An example of a multidimensional profitability segment
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Direct postings from Financial Accounting
CO-PA Value FlowsF I N A N C I A L A C C O U N T I N G
PP
P R O D U C T I O N
MMS A L E S
SD
FI
P R O F I TA B I L I T YA N A LY S I S
CO-PA
Variance settlement
Cost center assessmentO V E R H E A D M A N A G E M E N T
CO-OM
P R O D U C T C O S T I N G
CO-PC
Settlement of production variances
Billing doc.
Cost of goods manufactured
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Combined CO-PA Data StructureD O C U M E N T H E A D E R
Q UA N T I T Y S E G M E N T
Documentnumber
Quantityview
G/L accountSales
quantityUnit of
measure
VA LU E F I E L D S E G M E N T
Profitability Segment
Currencytype
Valuefield
Value Currency
A C C O U N T I N G D O C U M E N T
Documentnumber
Currencytype
Companycode
General ledger (G/L)
accountValue Currency
Profitability Segment
Document number
Posting date
ArticleMaterial
group
F I G U R E 2
Document structure in combined CO-PA
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Combined CO-PA Example
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Combined CO-PA Prerequisites
• S4CORE Level SP1 or above
• Implement SAP Note 2370683
(SAP S/4 HANA Finance 1610 or higher version)
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Extension Ledger
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Gross To Net Analysis Forecast ( L E A D I N G L E D G E R )
A C C O U N TC U R R E N T P E R I O D
P R I O R P E R I O D S
C U R R E N T B A L A N C E
Gross Revenue 100
Rebates and Chargebacks (20) (5) (25)
Prompt Pay Discounts (2) - (2)
Allowances for Sales Returns (1) - (1)
Distributor Fees (5) - (5)
Net Revenue 67
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Gross To Net Analysis Forecast ( E X T E N S I O N L E D G E R )
A C C O U N TF U T U R EP E R I O D
P R I O RP E R I O D S
F U T U R EB A L A N C E
Gross Revenue 110
Rebates and Chargebacks Accrued
(22) (5) (27)
Prompt Pay Discounts (2) - (2)
Allowances for Sales Returns (1) - (1)
Distributor Fees (5) - (5)
Net Revenue 75
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Key SAP Notes
• 1955893 - cPA: The combined profitability analysis
• 2344093 - cPA: Combined profitability analysis -implementation guide
• 2635566 - FAQ on Combined Profitability Analysis (cPA)
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Q&AFor questions after this session, contact us at
[email protected] and [email protected] or at
Booth #1234 Clarkston Consulting.
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Access the slides from 2019 ASUG Annual Conference here:
http://info.asug.com/2019-ac-slides
Presentation Materials
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