Contract Management - Delta Accruals for a fixed amount without Business Volume

[tim_parsons3]

Hi we have set up a contract for which there is no business volume for the first period of the contract say the first 10 days out of 100.

The contract is retrospective so we are generating delta accruals using a 7 day calendar.

When we run settlement to generate the delta accruals for the first 10 days it does not create any accrual then on the first day where there is business volume it creates an accrual for 11 days worth of accrual e.g fixed amoutn accrual of 1000 eur / 100 days *11 = Accrual on day 11 of 110.

Then for every subsequent day it will post an accrual of 10 EUR.

What we actually want is the accrual to be posted at 10 EUR per day for every day of the agreement.

[GauthierVictor]

Hi @tim_parsons3,

In SAP Settlement Management, if you need to generate delta accruals for a retrospective Condition Contract but no business volume exists for the initial period, the best approach is to maintain a Settlement Material in the Settlement Data tab of the Condition Contract.

The system requires at least one material to create a Settlement Document. By maintaining a Settlement Material, the system will use it to calculate fixed amount when no business volume is available. Once business volume is recorded, the system will prioritize actual transactions over the Settlement Material.

Alternative Approach

If your accrual calculation does not need to be tied to business volume, you may consider using a Condition Contract that is not business volume-based. This can be achieved by not maintaining a Business Volume Profile for the respective Condition Contract Type.

Configuration Options

You can maintain the Settlement Material manually in each Condition Contract or configure it via the system settings (note that this configuration is not transportable).

Best regards,
Gauthier Victor

[tim_parsons3]

Thanks for this Gauthier will test the approach and let you know how we get on. These contracts have some conditions that may be maintained as fixed amounts others that might be a percentage so removing the business volume from the contract type is not really an option but utilising the settlement material may be. Will let you know how it goes!

[tim_parsons3]

When we use a settlement material its obviously not reading the profit center from the plant view of the settlement material and as a result our solution is not posting. I assume we would need some kind of profit centre derivation rule in that case? Where we have the business volume we are not having such an issue

[GauthierVictor]

.

[GauthierVictor]

Correct, You can use Transfer Manager to default a profit center when it's not populated by the business volume or create your own custom logic.

[tim_parsons3]

Will continue to test have some other observations re the delta accruals for the fixed amount. With no settlement material i could totally understand what it was doing.

For example i put in a fixed amount  accrual of 1000 EUR over a period of 100 days it seemed to want to post 10 EUR per day

When i use a settlement material the accrual amounts before the business volume look strange

you can see to the 5thJuly  there is no business volume settlement is using the settlement material (100016298) but it seems to increase the amount each time rather than being a consistent proportion of the fixed amount accrual as can be seen after the first business volume posting from 5th onwards.

Struggling to get my head around what its attempting to do there but I will work to resolve the profit centre issue first ( enabling those ) settlement material based documents to post before i come back to this. First glance it appears to be inconsistent

Basically this is an accrual from 01.06.2024 to 28.02.2024 of a fixed amount 2000 EUR

duration of the contract 273 days 2000/273  7.326 . So you can see the ogic post first business volume where as pre business volume it seems to be starting at 7.326 and adding the same each time so 1st June to 5th July 35 days * 7.326 = 256.4103.

Im struggling to understand why the proposed accruals before the business volume seem to work differently to those after

But as mentioned will focus on resolving the profit centre issue first

[ygongalov15]

Hello Tim,

To resolve the profit issue, as Gauthier mentioned you can use transfer event 65 of transfer manager. As the source, you can use a class (standard CL_WLF_TR_SV_6F_COMP_CODE can be used as an example) and as a target you can use target structure KOMLFP and field PRCTR. 

Thanks.