Monday, June 13, 2011


Ø  A rebate is a discount, which is granted to a customer based on the sales volume over a specific period of time.

Ø  Unlike other kind of discounts the rebates are paid in the form of credit memo for the payer partner type.

Ø  When the rebate -relevant billing documents are processed, the system automatically calculate the accruals based on the condition record you have maintained for this transaction. If you desires you can reverse these accruals while creating the rebate credit memo.

Ø  A settlement run create s the required credit memo request automatically

Different type of Rebates

Ø  Like any other pricing condition you can define the rebates at as any level as you require.

Ø  Rebate agreements are created with specific Rebate Agreement Type.

Ø  Condition records are linked to the rebate agreement specifying the rebate rate and the accrual rate.

Ø  In rebate agreements you can specify a validity period for the agreement, condition types to calculate accrual rate, rebate basis etc. 

Ø  Following are some of the  rebate agreement types available in the standard system:

1.      Material rebate

2.      Customer rebate

3.      Customer hierarchy rebate

4.      Material group rebate

5.      Independent of sales volume

Pre-requisites of Rebates

Following are the pre-requisites of a rebate:

Ø  You must check the rebate field in the sales area-billing tab page of the payer customer master.

Ø  The billing type must be marked as relevant for rebates.

Ø  The sales organization must be marked as relevant for rebate.

Rebate Processing

Ø  Rebate process starts when you create a rebate relevant billing document.

Ø  The system uses the condition technique to calculate the rebate basis and accrual amount.

Ø  The system posts the accrual amount automatically in financial accounting when the rebate relevant billing document is saved.

Ø  At the same time system updates the rebate basis and accrual amount in the rebate agreement.

Rebate Settlement

Ø  In SAP you can settle the rebate either manually or automatically in the background.

Ø  The system uses the accumulated amounts in the rebate agreement to create a rebate settlement.

Ø  System will generate a credit memo request for the rebate amount as specified in the agreement.

Ø  Once authorized person approve the credit memo request you can create a credit memo with reference to the credit memo request.

Ø  Once the credit memo is created and settled the customer, you can reverse the accruals.

Ø  You can set partial settlement type for each rebate agreement. like:

1)      Up to the accumulated accrual amount.

2)      Up to the calculated payment amount for the current date

3)      Unlimited

Ø  Retroactive rebate agreement allows you to take into account the billing documents created before the rebate agreement was created.

Ø  In retroactive rebate agreement the system automatically calculate the rebate basis for the billing documents created previously and record in the rebate agreement, but the accrual amount is not automatically updated for previously created billing documents. This amount must be entered manually

Ø  Rebate-relevant billing documents created after the rebate agreement is created update both the rebate basis and accrual fields automatically.

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