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Managing Royalty Settlement in SAP CCM

SAP CCM: Royalty Settlement in the SAP Standard

Royalty settlement can be fully mapped within the SAP standard using Settlement Management. This allows you to manage and track your licenses while optimizing the value of your intellectual property.

What is SAP CCM Royalty Settlement?

You can use the royalty settlement functionalities in Settlement Management to manage royalty agreements and track financial obligations, ultimately optimizing the value of your intellectual property. These features support the creation, monitoring, and settlement of condition contracts and agreements related to royalty settlements. SAP CCM supports the entire lifecycle of your intellectual property.

How Can Companies Implement Effective and Transparent SAP Royalty Settlement?

Managing Royalty Agreements:
SAP provides you with a tool in SAP Condition Contract Management to centrally maintain your royalty agreements. You can easily create customer or vendor condition contracts. These contracts allow you to organize and store negotiated fees in one place. The condition contract contains all relevant data related to your licensing agreement, such as the licensing partner, validity period, and conditions for calculating the settlement amount.

Monitoring Royalty Agreements:
You can monitor your royalty agreements and their lifecycle using condition contracts and even display the underlying revenues. The tool offers various options to search for and gain an overview of your condition contracts.
Through different approval processes, you can control your condition contracts and make them available for operational use and settlement. A workflow can be customized to meet your company’s specific needs.

Accrual Postings for Royalties:
Your condition contracts with licensing agreements allow you to post accruals for your royalty agreements on a daily basis. You have the option to integrate the accruals into your MM and SD schemas or post them separately in CCM using delta accruals.
Delta accruals can be posted in a cumulative form during settlement. During this settlement run, the system generates special settlement documents to determine the delta accruals based on the corresponding revenue.
 

Managing Royalty Settlement in SAP CCM
Royalty Settlement in SAP CCM


Settling Royalties:
SAP CCM generates its own settlement documents for billing your royalty condition contracts, reflecting the amounts payable or receivable under your licensing agreements. These can be posted directly into Financial Accounting or through an approval process. The settlements can be carried out periodically, either flexibly or in a period-specific manner via scheduled jobs.

What Are the Benefits of CCM for Your Royalty Agreements?

Complete Transparency in Your Royalty Agreements
The condition contract serves as the "single point of truth" in SAP's new royalty agreement management. All relevant data pertaining to royalty agreements can be found here. Each settlement of the condition contract is fully documented in the document flow.

Automation of Royalty Agreements
All settlement processes (delta accruals, delta settlements, partial settlements, final settlements, accrual reversals) can be automated and, if needed, output via print or email (with archive integration available).

High Flexibility in Settlement Logic
Royalty settlement in SAP CCM is highly flexible and user-friendly. In addition to flexibility in settlement documents, you can access information from other modules at any point (extending document information) and customize logic through standard functionalities at relevant points.

Continuous Development of Logic by SAP
SAP Condition Contract Management (CCM) is continuously enhanced, and each release introduces new functionalities that increase the flexibility of royalty settlements. 

Do you want to integrate your royalty settlement into the SAP standard with S/4HANA? Our XEPTUM experts are here to advise you and present customized solutions. Let’s work together to achieve greater transparency!

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