Promotion Settlement with SAP CCM

Promotion settlement involves the settlement of services, such as advertising campaigns and sales promotions, that a business partner renders for a company within a defined promotion period.
In most cases, the costs and revenues from the promotion are calculated based on products sold during the promotion period and then settled after the promotion is over. Settlement management can be used to flexibly determine the articles sold during the period, calculate the result, and bill it in an invoice for services. Promotion contracts are usually implemented as separate condition contract types, to meet the demands of the basis for assessment.

Example in Germany:

Manufacturer A is planning a sales promotion with Trader B for a promotion period of two weeks. The sales price will be lowered by 2%. Based on the sales during this period, Trader B subsequently calculates the promotional bonus that is due. Once the promotion or campaign is over, SAP CCM is used to automatically bill this figure to Manufacturer A. Since Manufacturer A is purchasing a service, this business transaction is an accounts payable transaction – and thus subject to input VAT.