Rebate Processing,Rebate Rate and Accrual Rate

[Former Member]

Hi Friends,

I have few questions on Rebate and Accrual Rate..

Scenario:::::

I have created the Rebate Agreement(111) with 0003 Agreement type..

In that i maintained cond. record with Rebate Amount 4% and Accrual Rate 2%

PR00 price for the material is 2000/pc

Then we created

1) Order->Delivery->Billing for 4 pcs

Here in Billing i found Cond.type BO03 with 160 (i.e 2% of 8000)

When i checked Sales Volume in VBO2 it is Zero...(in Verification levels it is 160)

then I went to SE38 and executed SDBONT06

again i checked Sales Volume in VBO2 it is showing as Total Value 320 ( rebate amount 4% of 8000 and Accrual rate as 160 (i.e 2% of 8000))

Is it correct???

Question.1

Whether it is Compulsary to execute this SDBONT06 or it will be update automatically or whether i have done any mistake.......

Please guide me...

2)Order->Delivery->Billing for 2pcs

Here in Billing i found Cond.type BO03 with 80 (i.e 2% of 4000)

I checked Sales Volume in VBO2 it is showing as Toal Value 480 (i.e 320160(4% of 4000)) and Accrual rate as 240 (i.e 16080(2% of 4000))

(In Verification levels it is 240)

Here I didnt executed SDBONT06, Automatically updated

Now i want to do partial payment of 100 to customer..

In VBO2 i clicked on pay

In Max. Amount field it is showing as 480(i.e Rebate Amount Rate) not the Accrual Rate 240

Is it Correct??

Question.2

If we want to do the payment to the Customer which amount(Rebate Amount 480 or Accrual Rate 240)we need to pay???

Please guide me..

with regards

Azeez.Mohd

[Former Member · Accepted solution]

Hi Azeez,

In the example given by you, system will prompt you to pay 380. Lets understand why...in the agreement you have mentioned the rebate payout rate @ 4%...so it assumes that you had an agreement with customer that you are going to pay him @ 4%...based on this logic, system would calculate 480 - 100 paid = 380. Accrual % or accural balance is always internal to your company where rebate payout is what is external and would effect customer...Accounting entry that will be passed in this case is :

Discount A/c _______ Dr 240

Accrual A/c ________Dr 140

To Customer A/c 380

Customer would not accept anything less than 380 based on the agreement you have.

Accrual balance is only 140..

balance would be charged off to P&L account for less provisioning at the time of payment.

Dont confuse between accrual % and rebate %...both have different meanings and are used for different purposes. In normal agreement like what you specified, both should be same....

Hope your doubt would be clear now.

Regards,

Naveen Aggarwal

[Former Member · Accepted solution]

Hi Naveen,

Thanks for the reply.

If u have any documentation pls send me..

Points given..

with regards

[Former Member]

Accounting Entry, at what point of time? Accrual or Payout?

Scales would just help in computing the final value to be paid, it does not effect the accounting entry...

Edited by: Naveen Agarwal on May 15, 2009 9:34 AM

[Former Member]

Hi Naveen,

Here i am very much confused...

Please guide me...

In my example:

I have done 100 partial payment by clicking on pay in VBO2

In VBO2 Screen,

I have entered 100 in Amount to be paid field.(Max Amount filed is 480)

It automatically created Partial Rebate Settelment Request for 100.

I went to VA02,deleted billing block and created credit memo..

Now when i check the sales volume in VBO2,

Total Value is 380( Earlier 480) and Accrual is 140 (Earlier 240)

i.e here 100 is less.. bcoz i created credit memo for 100..

Now i want to do final settlement..

should i do for 380 or 140 ?????

Accoutning entries are created for BO03(Total Accrual Rate=240 ) in billing 1(160) and billing 2 (80)

If i do for 140, i think its correct bcoz accounting entries will be reversed.

Please guide me...

with regards

[Former Member]

Hi Azeez,

Normally, accrual rate and discount rate should be same, but in case where you have a scale based agreement with customer, you will be specifying scales for payout but accrual will not be specified in scales instead you will be specifying one particular rate since scale works within a document whereas scale based agreement needs to work across all billing documents for agreement period. So, to simplify the SAP process...SAP has given us the option to put the accrual rate...this rate needs to be calculated by business users in case of scale based on expected volume & type of scale.

Payment amount can be changed when you are making the final payout, system will show you the amount to be paid based on sales volume and rebate rate...at that point, you can reduce or increase the amount of payout.

Regards,

Naveen Aggarwal

[Former Member]

Hi,

in case of scale based agreement with customer, you will be specifying scales for payout but accrual will not be specified in scales.

So here what entries will be passed on to accounting..???

with regards

[Former Member]

Hi Do I need to configure anything special to do scale based agreement, which should work across all billing documents for agreement period. eg.

till 10000 TON 2%

10000-20000 TON 3%

20000 and Abave 4%

Here 10000, 20000, 30000 are the total weight bought by customer in this year.

[Former Member]

Hi,

Accrual rate is the one that will be used in all the billing document for accrual purpose.

Rebate rate is the one that will be used while calculating final payment for the agreement.

In the example given, Accrual would 2% of 8000 whereas while making payment, it will be 4% of 8000.

Answer 1:

It is not neccessary to run SDBONT06 always, only if you change the condition % in the rebate agreement, then only you have to run the report. In this case, since you created a new agreement, system expects you to run this once so that it checks if there are any past billing documents on which accrual should happen but has not happened due to non-existence of rebate agreement.

Answer 2:

As mentioned above, rate of rebate given would be used to calculate the amount to be paid to customer and not the accrual rate, although you can change the total amount to be paid, this value is system calculated only..

Hope this clarifies all the doubt.

Regards,

Naveen Aggarwal

[Former Member]

Hi,

Thanks for the reply..

In the example given, Accrual would 2% of 8000 whereas while making payment, it will be 4% of 8000.

As per the reply...

The Accounting entries are flowing w.r.t accrual rate(i,e 2% of 8000),

if we pay w.r.t rebate rate (4% of 8000) then what's the use of accrual????

Answer 2:

It is in grey mode..how can we change??

with regards