In this article, we will focus on one of the key features of condition contracts: the condition partner 2.3. This is a partner function that represents the recipient of the settlement amount. For example, if you have a commission agreement with an external sales agent, you can assign the condition partner 2.3 to the sales agent's customer master record. This way, you can track the commission amount that is due to the sales agent for each sales order or invoice.
How to configure condition partner 2.3
To use condition partner 2.3 in your condition contracts, you need to perform some configuration steps in SAP S/4HANA. Here are the main steps:
Create a partner function for condition partner 2.3 in Customizing for Sales and Distribution under Basic Functions > Partner Determination > Set Up Partner Determination > Define Partner Functions.
Assign the partner function to the relevant account groups and partner determination procedures in Customizing for Sales and Distribution under Basic Functions > Partner Determination > Set Up Partner Determination > Define Partner Determination Procedure.
Create a condition table that includes the condition contract number and the condition partner 2.3 as key fields in Customizing for Settlement Management under Basic Settings > Pricing > Sales (SD) > Define Condition Tables > Create Condition Tables.
Create an access sequence that contains the condition table in Customizing for Settlement Management under Basic Settings > Pricing > Sales (SD) > Define Access Sequences.
Create a condition type that uses the access sequence and has the calculation type as percentage or value in Customizing for Settlement Management under Basic Settings > Pricing > Sales (SD) > Define Condition Types.
Assign the condition type to a pricing procedure that is relevant for your condition contract type in Customizing for Settlement Management under Basic Settings > Pricing > Sales (SD) > Define Pricing Procedures.
Assign the pricing procedure to your condition contract type in Customizing for Settlement Management under Condition Contract Management > Assign Pricing Procedure to Condition Contract Type.
How to use condition partner 2.3 in your condition contracts
Once you have configured condition partner 2.3, you can use it in your condition contracts as follows:
Create a customer master record for the condition partner 2.3 and assign the partner function to it.
Create a condition contract with the relevant contract type and enter the main customer or vendor as the payer or payee.
Enter the condition partner 2.3 as an additional partner in the customer/vendor data tab of the condition contract.
Maintain the conditions for the condition partner 2.3 in the conditions tab of the condition contract. You can enter different rates or values for different ranges of business volume or other criteria.
Create sales orders or invoices for the main customer or vendor and check that the condition contract is determined automatically in the pricing procedure.
Run the settlement process for the condition contract and check that the settlement amount is calculated correctly based on the conditions for the condition partner 2.3.
Post the settlement document and check that an accounting document is created with a debit entry for the main customer or vendor and a credit entry for the condition partner 2.3.
Conclusion
Condition partner 2.3 is a useful feature of condition contracts that allows you to manage different types of agreements with your customers and suppliers in SAP S/4HANA. You can use it to track and settle rebates, commissions, royalties, and bonuses with various recipients based on their contribution to your business volume. You can also use other partner functions, such as condition partner 2.1 and condition partner 2.2, to represent different roles in your condition contracts, such as the payer, the payee, or the beneficiary.
If you want to learn more about condition contracts and settlement management in SAP S/4HANA, you can check out the following resources:
[Settlement Management Condition Contracts]
[Condition Contract Management Sales Commission for External Sales Agent]
[Customer Hierarchy in SAP HANA]
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