Condition contract management in S/4 HANA- Settlement document split

[SanchitKhanna]

Hello Gurus,

I have a question regarding Condition Contract Management in S/4 HANA. Our client has a requirement to split the settlement document generated for customers, as follows:

Since goods supplied under a condition contract may have various ‘Tax Dept / Tax Dest’ combinations, they would like this to be reflected in the settlement document created during the payout process. The options they are considering are:

- A separate settlement document for each ‘Tax Dept / Tax Dest’ combination, or
- Separate line items within the settlement document for each ‘Tax Dept / Tax Dest’ combination.

Is there any functionality in S/4 HANA that allows for splitting the settlement document by tax code, resulting in one settlement document per tax code?

Looking forward to your guidance.

Thank you!

[DequanXu]

Hello,

SAP S/4HANA does not provide out-of-the-box functionality to automatically split settlement documents by tax code. However, the extensibility framework in S/4HANA, such as the use of custom fields and logic in BAdIs, can be leveraged to achieve the desired functionality.

To achieve a split in the settlement document based on specific criteria like 'Tax Dept / Tax Dest' combinations, there are generally two approaches:

1. **Separate Settlement Document for Each Tax Combination:**
- You can configure the system to create separate settlement documents for each 'Tax Dept / Tax Dest' combination by implementing custom logic. This is typically done using Business Add-ins (BAdIs) where you can define additional split criteria based on tax attributes. While SAP S/4HANA provides certain predefined split-relevant fields, for achieving this specific requirement, custom logic via the BAdIs would be needed.

2. **Separate Line Items Within a Settlement Document:**
- Alternatively, you may keep a single settlement document but have separate line items for each 'Tax Dept / Tax Dest' combination. This would involve customizing the settlement management process to ensure that the line items are created accordingly based on your tax attributes.

Best regards,

Dequan Xu