What settlement types can be used for the settlement of a condition contract in SAP S/4HANA?

In SAP S/4HANA, the correct answer regarding settlement types for the settlement of a condition contract is Final Settlement. This type plays a crucial role in concluding the financial transactions linked to a condition contract, as it allows for the final calculation and realization of the agreed conditions. A Final Settlement is typically used at the end of a defined period to consolidate all transactions, ensuring that any outstanding balances are cleared, and any payments due are finalized.

Other settlement types, while relevant in different contexts, do not apply specifically for condition contracts in the same manner. For example, a Monthly Statement may reflect transactions occurring within a given month but does not serve as a concluding transaction for the entire contract. Similarly, an Annual Summary could provide an overview of activities over the year but lacks the specificity needed for finalizing contracts. Partial Settlement, although it does allow for a portion of the contract to be settled, is not the definitive conclusion needed for the escrow-like handling of financial obligations typical of a Final Settlement. Thus, Final Settlement accurately describes the correct approach to closing out condition contracts in SAP S/4HANA.