Rebate Processing

[Former Member]

Dear All,

We have configured Rebate Processing. In Pricing we have maintained the Acct Key : ERB & Accrl : ERU.

In VKOA we have maintained the GL against ERB & against ERU we have maintianed GL A/c & Provision A/c.

During Account Determeination in Invoice the system is considering ERU as Account Key & not ERB. Due to which the Rebate Amt are gettng Debit against GL A/c & Credit against Provision Account. Please let me know why system is not consedring ERB as account Key & also what will be the correct accounting entries in Rebate Processing

Regards,

Mahendra

[Former Member]

hi,

it's the condition type in pricing procedure that gets to decide which account key will be used for posting to FI. if it's the rebate condition type you're using, then ERU under Accrual Actkey is used, which means that both the GL and Provision Act in ERU are used to post to FI, and get debit and credit for each one of them.

the question leads to when ERB will be used?

right, while settling rebate, GL Act in ERB is used for reposting the amount to the customer. meanwhile, the amount in Accrual Actkey will be reversed, between the GL and Accrual Actkey in ERU again.

so basicly i think your process is correct.

[Former Member]

Dear Bala

Goto VF02, analysis, Double click the Rebate condition type & see whether the correct G/L's for ERB & ERU populated. If not..

You check in VKOA

ERB has G/L Account Number. Ex 123456

ERU has G/L Account Number & Provision Account. Both should be same & maintained . Ex 123457

Regards

Deepu Pillai

[Former Member]

Bala,

Rebate account determination should happen with one Revenue/Expense GL and another Provision GL. This determination in done in the SD account determination (VKOA). Though the account determination has 2 lines one for acct key ERB and another for ERU, this acct key is determined based on the control key in condition type. The control key "Accrual" activated in the cond type determines the ERU key assigned in pricing procedure in Accrual field.

Based on this settings the Rebate accrula is posted to 2 GL's assigned in the account determination, which inturn offsets the FI entry.

During settling the rebate, this accrual GL in reveresed and the Revenue / Expense is reposted to the customer revenue as a retroactive discount (Through credit Memo).

Posting during billing should be debit to Revenue / Expense account and credit to Accrual account.

Thanks and regards,

Mahi

[Former Member]

Interchange the account keys in pricing procedure or interchange the GL accounts in VKOA.

Regards,

GSL.

[Former Member]

Hi ,

Ask your FI consultant to Check the GLAccount settings for the concerned account key.

Best Regards

SRI