Customer Rebate

[Former Member]

I want to know detailed accounting entries for the Customer Rebate.

For Example:

Sale amount is USD100

Rebate is USD 10

What could be the accounting entry at the time of Invoice?

Then when rebate settles i dont understand the postings. Say for example accrued rebate is USD 10 and final rebate the customer getting would be USD 11. Can anybody explain in detail with entries bcos i need to understand the postings and process.

Thanks in advance for your help

[former_member217082]

Hi

If you are doing the rebate then initially the sales posting will happen to the G/L accounts that you have assigned in VKOA . So as per your example Rs.100/- will be getting posted to 1 G/L account and the rebate amount of Rs.10/- will be posted to ERB G/L account that you have assigned in VKOA. But when you settle the rebate amount then it will hit the G/L account assigned to the ERU

Regards

Srinath