Accruals for Rebate

[Former Member]

Hi,

What is accruals?

When i create Rebate agreement, in condition type if i enter amount as 5.00- INR per piece & Accruals as 1.00-INR per piece, what will happen?ie. it will consider 5.00 INR per piece rate or 1.00 INR per piece?

Regards,

Amol

[Former Member · Accepted solution]

Hi

Accrual is the accrued discount amount which you want to pay back to the customer when you settle the Rebate.

When the Rebate relevant Billing document is posted , the Accrual is also posted to FI in the specific G/L account meant for Accrual.

In the condition record for Rebate agreement we enter the Rebate rate and the Accrual rate.

As per your question,you have given(Rebate rate) 5.00 INR amount per piece & Accrual as 1.00 INR(Accrual rate).

Then ,system will take 1.00 INR as accrual amount and this amount will be posted in FI and will be accrued there.

System always considers the accrual amount specified in the condition record, therefore normally, we give Accrual rate same as Reabte rate.

[Former Member · Accepted solution]

Is credit memo request(CMR) will be raised against Rebate amount or Accruals ?

If CMR is raised against rebate amount then what about accruals?

pls Guide

Amol

[Former Member · Accepted solution]

Hi

"Rebate credit memo request" is automatically generated by the system when you go for Execute settlement, system gives you a Rebate Credit memo request number.

Rebate Credit memo request is raised against the Rebate agreement (not against the Rebate amount or Accrual ).

We settle the Rebate by paying back the accumulated discount money (posted in FI) which is due to the customer (accrual amount), so here only accrual is important in Rebate.

You can go for Final settlement or Partial Rebate settlement.

If you are going for Final settlement, then system issues a "Rebate Credit memo request" for the total accrual amount accumulated in FI, and the total accrual in reversed/cancelled from FI.

If you are going for Partial Rebate settlement, then you have to go through the settlement via the payment screen, where you can specify the Partial amount you want to settle and system will issue a Rebate Credit memo request for that amount.

From the Rebate Credit memo request, you can create Rebate Credit memo after removing the Billing block and that is how Rebate will be settled.

[Former Member]

Hi there,

1.As per mentioned, the rebate and accrual rate normally is the same, on what circumstance both of the rates will be enter differently?

2. What about those amounts we updated under Scale condition? Is that the rebate or accrual rate? If the particular entered material from the sales volume is more than 20 pc, what happen?

Ex:

From 1 pc 20 INR

From 20 pc 30 INR

Thanks in advance for your reply.

skybar83