In this process, condition contracts are used to enter royalty agreements with licensers. In a condition contract, you specify the recipient of the royalties, the organizational and process control parameter, the business volume selection criteria, the royalty conditions, and the settlement calendar with the settlement dates for delta accrual, partial settlement, and final settlement. The delta accruals settlement reflects a procedure where accruals for royalties aren’t posted together with transactional documents but are posted later in a specific settlement run. When carrying out the partial and final settlements of a condition contract, you perform the calculation of royalties based on business volume and royalty conditions. You create the settlement documents that reflect invoices from the licenser for granting license rights in sales deals. In this scope item, the business volume is determined from sales and distribution (SD) billing documents.
This Scope item is used in the following way: