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The condition contract management solution revolves around the condition contract document. In this document, you can manage conditions, specify administrative data, define the criteria for business volume selection, specify eligible partners, and maintain settlement calendar information.

Quantity Contract − In this type of contract, the overall value is specified in terms of total quantity of material to be supplied by vendor. Value Contract − In this contract type, the overall value is specified in terms of total amount to be paid for that material to the vendor.

Settlement Management is a comprehensive and flexible SAP S/4HANA solution that supports the settlement of rebates and external commissions, the processing of employee commissions and incentives as well as the settlement of royalties.

In SAP S/4HANA, condition records are used to accrue and pay customers. Condition contracts are documents that you use to enter conditions that refer to one or several vendors or customers, or to one or several products, and combines all information relevant to the agreement.

With enterprise search, you can search for settlement documents directly from the SAP Fiori launchpad with user-defined search criteria. To find a specific settlement document, you can use the search field in the Fiori menu bar.

S/4HANA Condition Contracts are a powerful new feature used to manage rebate, commission and royalties agreements with customers or suppliers. They're typically used to grant discounts or commissions for meeting quantity or value targets for sales or purchase volumes.

The condition contract type defines the data source for settlement, for example, billing documents for sales rebate condition contracts. The business volume selection criteria that you define in a condition contract define the scope for which the system determines the business volume.