Exploiting potential with SAP Condition Contract Management
Our approach for more transparency
Many companies still maintain condition agreements manually using Excel spreadsheets that have been established and developed over years. The structure of these Excel documents is therefore very complex and brings a high potential for errors. In addition, cross-departmental communication is only possible with impediments. This is precisely where SAP’s solution comes in. In the consumer goods industry in particular, a wide variety of agreements are negotiated between consumer goods manufacturers and retailers in the form of promotional grants and displays, among other things. Systems-based recording of these agreements can reduce the costs of manual follow-up. SAP CCM is worth a look here.
SAP MM-/SD Bonus will be switched off with the introduction of SAP S/4HANA at the latest. It is therefore worthwhile to familiarize yourself with the successor solution SAP Condition Contract Management (in short: SAP CCM) at an early stage. By processing subsequent remuneration using SAP CCM, condition agreements can be mapped transparently and efficiently. The process is integrative and holistic, meaning it covers everything from condition contract creation to settlement and archiving.
The flexibility of the solution is already apparent in the condition contract creation. In addition to fixed value agreements, sales scales and value scales can also be mapped. The values of the associated condition contract are determined automatically based on the sales data in the system. By using so-called business volume selection criteria, the sales base can be defined directly during the creation process. Possible criteria for the limitation are, for example, the product hierarchy or certain materials that can be included or excluded.
The creation of a settlement calendar enables, if desired, the automated settlement of condition contracts on agreed settlement dates. Both partial and final settlements can be scheduled. In addition, accruals are considered in this process step. The settlement calendar shows easily which settlements have already been carried out and which still have to be settled.
Existing contracts can be extended after full settlement with the help of a few clicks, thus saving administrative effort for the creation of new contracts. A list of all condition contracts and their status can be viewed in the system at any time.
Are you interested in evaluating your options and would you like to find out how your approach for transformation can look like? Then feel free to contact us.