SAP Condition contract Final settlement question

[Chinmay7]

Hello CCM Gurus,

We have an issue performing final settlement for our customers at the end of the year. We issue quarterly partial settlements to our customers for the sales done in the preceding quarter (Q1, Q2 and Q3). The partial settlements consider the business volume correctly. The issue arises when we issue final settlements to our customers (Q4 only), but the credit note considers the business volume of the entire year thereby causing us to issue dual credit to the customer for the volume for which credit is already done.

Please guide us in solving this confusing issue

[Lakshmipathi]

Perform the below steps

RES2 is designed to deduct previously settled amounts during final settlement. Ensure RES2 is active in your condition contract settlement schema. Validate that RES2 is correctly determined during final settlement runs.

Use settlement type “Final Settlement” with proper flags to include RES2. Ensure the settlement calendar and validity periods are correctly defined so that partial settlements are recognized.

Confirm that partial settlements are posted with correct condition types and are marked as “settled.” Check that final settlement logic references the same condition contract and condition records.

Run simulation of final settlement to verify how business volume and prior credits are calculated. This helps catch duplicate credits before posting. 

If standard RES2 logic isn’t sufficient, consider using BAdI BADI_CCM_SETTLEMENT_DOC to customize how prior settlements are deducted.