Supplier Bonus

A supplier bonus is a price discount that is settled subsequently, which a company usually receives from its suppliers based on goods receipt volumes or incoming invoice volumes. Previously negotiated agreements – such as defined purchase quantities, scale values, and condition contracts – form the basis for calculation. In contrast to discounts granted in invoices, supplier bonuses are settled with a delay, often at the end of a month, quarter, or year. The aim of a supplier bonus is to lower purchasing and procurement costs after the fact.

In SAP S/4HANA, supplier bonuses are mapped in the SAP Settlement Management module in the system and integrated in the purchasing processes through bonus agreements and defined settlement logic. Management of supplier bonuses requires the structured assignment of bonus periods, reference values, and condition types. With SAP CCM, the MM bonus functions used in ECC have been replaced and are subject to continual enhancement under SAP S/4HANA.