Settlement Periods for Service Contracts

[ISoma]

Hi Expert !!

I created service contract in S/4 HANA Public Cloud . 
 ・Contract Start: 2024/11/1
 ・Contract End: 2025/10/31

In this case, I would like to operate the Settlement Periods from the 16th of the current month to the 15th of the following month.
The image is as follows.

Can you increase the number of options for Settlement Periods? (e.g. "From the 16th of the current month")

Soma

[varunvenkat · Accepted solution]

Hi Soma,

what is the exact reasoning behind wanting a settlement period starting on the 16th? This wouldn't be functionally correct in my opinion, as you would be ignoring the first 15 days (01.11.24 - 15.11.24) of the contract's. Furthermore, the final settlement period would then be 16.10.25 - 15.11.25, which would then also be exceeding the contract end date (31.10.25).

I'm not aware of the exact business requirements in your case, however a simpler approach would be to have monthly settlement periods that are aligned with the contract start and end dates, and to use a billing date with an offset of 14 days:

Best regards
Varun

[ISoma · Accepted solution]

Hi Varun！

Thank you for your answer.
I understood your answer.

By the way, the work of the customers I am in charge of is as follows.
・For example, the contract price is registered with a contract period of 11/1/2024~10/31/2025.
・In this case, the invoice price will be 0 yen for the period 11/1/2024~11/15/2024.
・The settlement period will be 11/16/2024~12/15/2024, 12/16/2024~1/15/2025, 1/16/2025~2/15/2025...

Soma