--- title: Contract Settlement in SAP S/4HANA description: Learn how to effectively manage contract settlements in SAP S/4HANA with customizable review processes and workflows. image: https://blog.sap-press.com/hubfs/Contract%20Settlement%20in%20SAP%20S_4HANA.jpg --- [![rheinwerk-sappress-logo-header-1](https://blog.sap-press.com/hubfs/rheinwerk-sappress-logo-header-1.svg)](https://blog.sap-press.com/) [Blog](https://blog.sap-press.com) - Books - Get an overview of our books and courses on every relevant SAP topic. - [Programming](https://sap-press.com/programming/) - [Administration](https://sap-press.com/administration/) - [BI](https://sap-press.com/business-intelligence/) - [Finance](https://sap-press.com/finance-controlling/) - [Logistics](https://sap-press.com/logistics/) - [HR](https://sap-press.com/human-resources/) - [CRM & Sales](https://sap-press.com/marketing-sales/) - [HANA](https://sap-press.com/hana/) - [Introductions](https://sap-press.com/introductions/) - [E-Bites](https://sap-press.com/e-bites/) - [Certification Guides](https://www.sap-press.com/certification-guides/) - [Rheinwerk Courses](https://www.sap-press.com/online-courses/) - Book Subscription - Get unlimited access to all SAP PRESS books! - [SAP PRESS Subscription](https://sap-press.com/subscriptions/) [FICO](https://blog.sap-press.com/tag/fico) # Contract Settlement in SAP S/4HANA ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) by [SAP PRESS](https://blog.sap-press.com/author/sap-press) Once you have created a contract in SAP S/4HANA, you should review the details.   The review process for contracts is customizable to fit a company’s specific requirements. We can handle this by allowing users to settle their own contracts and having stricter controls over the release of payments, ensuring a dual-control process is set up in security, or using [SAP S/4HANA’s](https://learning.sap-press.com/sap-s4hana-overview-benefits) workflow to ensure that multiple people review the contracts, as follows.   ## Dual Control We can implement security measures on the activity types of a contract so that only certain users can create, settle, or approve them. The downside of this approach is that some users will always be designated as the creators and a different group of users will always be the approvers. Since a user can’t both create contracts and approve other users’ contracts, this may not be the best solution for smaller treasury departments.   To run the settlement portion of a transaction, we use the Process Financial Transaction app or Transaction FTR\_EDIT. The app for this transaction is shown in this figure.   ![Process Financial Transaction App](https://blog.sap-press.com/hs-fs/hubfs/image-png-Nov-19-2025-03-36-24-7994-PM.png?width=637&height=642&name=image-png-Nov-19-2025-03-36-24-7994-PM.png)   To settle the transaction, we enter the **Company Code** and **Transaction** ID and then click on the **Settle** button (see figure below). The next screen will show the transactions details and structure that we saw in the Create Financial Transaction app. Once we have reviewed everything, we can save the transaction. This completes the settlement process, and the **Activity** for the transaction will be updated from **Contract** to **Contract Settlement**. The exact flow and statuses of the contracts are dependent on the configuration for the transaction type. ![Processing Financial Transaction Settlement](https://blog.sap-press.com/hs-fs/hubfs/image-png-Nov-19-2025-03-36-48-3256-PM.png?width=1443&height=489&name=image-png-Nov-19-2025-03-36-48-3256-PM.png)   ## Workflow Workflows can define the release procedures for each step of the contract creation and editing process. Creation of and changes to the contract can kick off a workflow that is sent to the approver’s worklist and has to be released before the creation of or edits to the contract are active. When a transaction is in a workflow, we can approve the transaction in the My Inbox app or Transaction SBWP.   ![Workflow Approval Screen for Treasury and Risk Management Transactions](https://blog.sap-press.com/hs-fs/hubfs/image-png-Nov-19-2025-03-37-04-3318-PM.png?width=1440&height=802&name=image-png-Nov-19-2025-03-37-04-3318-PM.png)   ## Conclusion Contract settlement in SAP S/4HANA brings structure, control, and transparency to the lifecycle of treasury transactions. Whether a company relies on dual-control security, workflow-driven approvals, or a combination of both, SAP S/4HANA provides the flexibility to match its internal oversight requirements. By reviewing contract details, settling transactions through the Process Financial Transaction app, and leveraging workflow approvals where needed, organizations can ensure that every contract moves through a consistent, auditable process. With the right configuration, these tools not only streamline operations but also strengthen financial governance across the treasury function.   Editor’s note: This post has been adapted from a section of the book [*Treasury and Risk Management with SAP S/4HANA: The Comprehensive Guide*](https://www.sap-press.com/treasury-and-risk-management-with-sap-s4hana_5907/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2610_chapter2&utm_content=2610) by [Luke Carlson](https://www.linkedin.com/in/-saptreasury/), [Andrew Carlson](https://www.linkedin.com/in/andrew-carlson-saptreasury/), and [Jeffrey Lasecki](https://www.linkedin.com/in/jeffreylaseckipmp/). Luke has over 18 years of experience in SAP Treasury and Risk Management, and has delivered SAP treasury projects to more than 25 companies across the globe. Andrew began working with SAP treasury solutions in 2009 first as a business user and soon after as a consultant. Jeffrey has specialized in SAP Treasury and Risk Management since 2006 and has worked with clients across North America and Europe in the areas of cash management and treasury.   This post was originally published 12/2025. ## Recommendation [![Treasury and Risk Management with SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/social-suggested-images/2610-Feb-03-2025-04-11-30-8499-PM-1.jpg?width=170&name=2610-Feb-03-2025-04-11-30-8499-PM-1.jpg)](https://www.sap-press.com/treasury-and-risk-management-with-sap-s4hana_5907/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2610_chapter2&utm_content=2610) **Treasury and Risk Management with SAP S/4HANA** Decipher the complex world of TRM! With this all-in-one guide to SAP S/4HANA Finance for treasury and risk management, you’ll get the detailed, expert help you need to run your operations smoothly. Set up your core configuration elements for debts and investments, foreign exchange, derivatives, and securities. 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