CCM Sales Rebates- Posting accruals adjustment instead of accrual reversal at the time of settlement

[hemants2]

My client has following accounting requirements for CCM accruals and settlement postings.

Example Contract: Sales Rebate (0S01)
Contract period - 1 month
Business volume sales: €50,000
Accrual rate: 10 %
Rebate rate: 10 %

Accrual Posting: Delta Accrual at end of the month: €5000
Dr Accrual Expense account (P/L) €5000
CR Accrual Provision account (B/S) €5000

Scenario -1
Settlement at the end of month where settlement amount calculated based on business volume
Calculated Settlement amount: €5000

Accounting postings (Client Requirement)

Cr Customer €5000
Dr Accrual Provision account (B/S) €5000

Accounting entries (CCM standard)

Cr Customer €5000
Dr Accrual Expense account (P/L) €5000

Dr Accrual Provision account (B/S) €5000
Cr Accrual Expense account (P/L) €5000

(Note: All open accruals are reversed)

Scenario -2

Settlement at the end of month where settlement amount is less than the calculated amount based on business volume

Calculated Settlement amount: €5000
Manual settlement amount using REV1 (Rebate verified condition) € 4000

Settlement Accounting postings (Client Requirement)

Cr Customer €4000
Dr Accrual Provision account (B/S) €4000

Dr Accrual Provision account (B/S) € 1000
Cr Accrual Expense account (P/L) € 1000

Accounting entries (CCM standard)

Cr Customer €4000
Dr Accrual Expense account (P/L) €4000

Dr Accrual Provision account (B/S) €5000
Cr Accrual Expense account (P/L) €5000

I am using standard Settlement pricing procedure A10005 and Rebate Delta Accrual pricing procedure A10006. CCM Contract type: 0S01 Sales Rebate, Settlement Doc type: 0S12, Settlement Process type: 0S10

The CCM standard accounting reverses the accrual while client needs only accrual adjustment to be posted at the time of settlement. 

Does anyone know how to achieve the above requirement?  

[GauthierVictor]

Hi @hemants2, 

I recommend checking pricing routine 91 maintained in the pricing procedure for the condition type REA5 to better understand how the system is handling accrual reversals.

What you’re describing is standard SAP CCM behavior. The system assumes that if there is an open accrual at the time of Final Settlement document creation, it should be fully reversed since no further settlement is expected. However, at the time of Partial Settlement, any remaining open accrual amount is retained in case it is needed later within the contract period.

Standard Accrual Reversal Logic in CCM:

• During Partial/Final Settlement, the system reverses the accrual (affecting the Balance Sheet Account and P&L). Note that for these reversal postings, no tax code is populated in the FI document.
• + system posts the calculated rebate amount to the Customer/Vendor account and a corresponding P&L account, this time with tax code populated. 

Alternatives if Full Accrual Reversal at Final Settlement is Not Desired:

1. Use Manual Settlement: Utilize WB2R_DOC_ENTRY instead of automatic settlement.
2. Modify Pricing Routine 91: This would change how accruals are handled, though I do not recommend this approach unless absolutely necessary.
3. Adjust Configuration: Configure the system to prevent automatic accrual reversal during Partial/Final Settlement if this aligns with your business requirements.

Regards, 
Gauthier Victor 

[hemants2]

Thanks @GauthierVictor for your quick response. The client requires debiting the Accrual Provision (b/S) account at the time of settlement, rather than the accrual expense account. Therefore, a full accrual reversal at the time of settlement is not necessary. Using the account key/G/L account determination, we can debit the Accrual Provision instead of the expense account for the settlement amount. However, my concern is how to get the right accrual at the REA2 condition, as it should have the adjustment amount and not the open accrual amount. The alternatives you suggested are what we have also proposed, wherein no accruals are reversed or adjusted at the time of settlement (both manual and automatic). The business then needs to adjust the accrual manually as applicable. I have a question: Is there any CCM-Settlement transaction to post the manual accruals for the condition contract similar to WB2R_DOC_ENTRY? This posting should also update the WCOCOF table. Thank you for your assistance.

[GauthierVictor]

Hi @hemants2 ,

Unfortunately, that approach does not align with SAP CCM best practices.

While it is technically possible to manipulate the system—such as adjusting the Account Key to post to the Balance Sheet and configuring the system to prevent automatic accrual reversal—I strongly recommend reviewing and aligning the FI posting process with standard practices. Deviating from best practices could introduce additional manual effort and increase the risk of errors in financial postings.

Regarding your other question, there is a standard settlement document type available for manual Delta Accruals:
0S4B – Sales Rebate Manual Delta Accruals

Regards,
Gauthier Victor

[MichaelWerner]

I think this in an issue which is not related to the settlement and reversal of accruals. Instead this is related to how the accounting interface summarizes all the items. 

Within the customizing of the settlement document type an option "Summarize Debit/Credit in Posting Items" exists. 

That might help. Please consider the F1 help for this field:

Summarize Debit/Credit in Posting Items

If the indicator is set, G/L account and tax lines are also summarized across debits/credits, in addition to customer and supplier lines.

Dependencies

The functionality is only available for the class-based creation of FI/CO documents. In addition, the insert mode must be set to 1 = Summarize Directly When Inserting or 2 = Summarize Directly When Inserting and (again) at the End or 5 = Summarize Directly When Inserting and Sort at the End, since this summarization takes place when inserting (and not when summarizing at the end).