Rebate agreement

[Former Member]

Dear Friends,

1. In my pricing procedure I have defined a step as basis for Rebate with Subtotal u2013 7 and included BO03 - Customer Rebate with Requirement u2013 24 and A/C keys ERB and ERU in the pricing procedure.

Step Co Ctype Description From To Subtotal AccK Accr

10 0 PR00 Price

20 0 Z001 General Discount 10

30 0 Z002 Additional discount 10

40 0 Z003 Qty Discount 10

50 0 Total Discount 20 40

60 0 Rebate basis 10 40 7

600 0 BO03 Customer Rebate 60 24 ERB ERU

2. In VKOA, I am not sure how to go with A/C assignment - Do I need to use two different G/L accounts for ERB and ERU? I have defined currently as below:

App Cond ChAc Sorg AAG AAG ACK G/L Provision

V KOFI 1000 1000 01 05 ERB 40100000

V KOFI 1000 1000 01 05 ERU 40100000

3. While creating the Rebate Agreement record (VBO1), what does the Amount and Accrual field refer to? Which one should I use?

Thanks

Isaac

[Former Member · Accepted solution]

Hii,

In the amount field, you have to put the actual discounts/rebates you are palnning to give your customer. Scales can be in according to purchase of customer also.. like maybe for 100 1%, for 200 2%... but incase of accruals youy have to arrive at a conlusion of how much amount you would like to accrue or keep aside for the rebates. Actually this has to be consulted with FI people.

yes there will be two account keys. for deatils you can search in the forum or you can consult your FI person.

Regards,

Pankaj

[Former Member · Accepted solution]

Dear Friends,

Thanks for the inputs.

1. I need capture the Rebate based on the Customer and material combination.Whats the conditions I need to use?

2. What should be the Basis for Rebate (Subtotal 7 in the pricing Procedure) for the Customer /material Combo. If the Rebate is Customer specific then I can have the Rabate Basis on the Assessable value (Basic Price - Discounts)

Thanks

Isaac

[r_rajeshkumar · Accepted solution]

Hi,

1. BO01 would be suitable.

2. Rebate itself is a discount but paid retroactively. Usually business does not give both discount and rebate for the same sale. Kindly explain the requirement in more detail.

Regards,

Rajesh Kumar

[Former Member · Accepted solution]

Dear Friends,

The Basic price of the material depends on the market conditions.Only at the end of the month my client arrives at the exact basic price with reference to the Market conditions.

My client gives the material at a discounted price( Discount is adjusted in the Basic price itself) expecting some sales.

At the end of the month he checks the sales figures and also the exact Basic price to be charged. Then he generates the credit / debit notes based on the above.

Do i need to configure the Rebate agreement for this or simply can i go with the Debit/Credit memo generation with refernce to the invoices generated on the customer

Thanks

Isaac

[r_rajeshkumar · Accepted solution]

Hi Issac,

A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period.

It is something like this (There are many other scenarios here but I am just explaining one). You tell a customer that he will have to purchase 1000 units of a material in a particular month. If he bills 1000 units in the specified duration then he will get a discount of X amount for all 1000 units billed. The discount gets accumulated for every sale in a separate place. This is called accrual. The catch is this will done AFTER billing 1000 units. This is a technique to make the customer achieve a sales benchmark.

If he does not bill 1000 units then he does NOT get the discount for all the 1000 units.

My client gives the material at a discounted price( Discount is adjusted in the Basic price itself) expecting some sales

You seem to give the discount EARLIER and then make adjustments whereas through rebates we give the discount AFTER.

At the end of the month he checks the sales figures and also the exact Basic price to be charged. Then he generates the credit / debit notes based on the above.

When you raise debit notes (effectively asking them to pay more) for a past sale do the customers agree?

There is no debit notes raised in Rebates. Only credit notes.

Regards,

Rajesh Kumar

Edited by: R Rajesh Kumar on Aug 10, 2009 11:05 AM

[Former Member · Accepted solution]

Thanks Rajesh for the inputs,

Iam using Material Rebate(BO02). I have to define the scales as below:

1) 0 - 100 No's the Rebate applicable is Rs10/No

2) 101 - 200 its Rs 20

3) 201 - 300 its Rs 30

I find the accrual rate always same irrespective of the scales. Say if the customer falls in 3 slab the accruals should be Rs 30 for the each unit the customer purchased.Somebody pl help me to get this done,

Thanks

Isaac

[r_rajeshkumar · Accepted solution]

Hi

I find the accrual rate always same irrespective of the scales

Rebate rates and Accrual rates may differ. They need not be the same.

 if the customer falls in 3 slab the accruals should be Rs 30 for the each unit 

Accrual is not for each interval of scales. It is for the whole rebate agreement.

Just check for the total rebates. It will be as per your Rebate rates (a/c to scales).

Regards,

Rajesh Kumar

[Former Member · Accepted solution]

Hi Isaac

In my view, Rebate is not a right solution for your issue.

Rebate is a special kind of discount which is given to the customer on a sales volume generated by him in a particular period and it is paid retrospectively.

When the billing document is saved, Accrual is posted to a special G/L account and accumulated there, which you pay back to the customer when you settle the Rebate. For this we create a rebate condition record in the Rebate agreement, where we specify the rebate rate & accrual rate.

But, in your case, you do not know the exact rate of discount so you do not how much amount should be accrued. Again ,you are also not sure till the end of the month, that whether it will be discount or surcharge, I mean whether you have charged more or charged less. So, how you will create a Rebate for this scenarion.

In my suggestion, discuss with your ABAPer and create a report to find the actual price charged to a individual cuatomer for different material in a particualr month.

Once, you come to know the price at the month end, you can calculate whether still you have to pay more to the customer, if so , issue a Credit memo to the customer.

If you found that, customer need to pay more to you, than issue a Debit memo.

Send a detail report to the customer as to what was actually charged to him and what is the about credited or debited to avoid any complaint and smooth business.

[Former Member · Accepted solution]

Hi,

you mentioned in your example, that we can set a limit, such that, rebates only upto 1000units... if by that period, was able to sold 1500units, will the rebate only calculate upto 1000? if yes, how? when i'm doing testing, it still gets 1500 accrual...

[Former Member]

How do I control payments of a rebate agreement by using status of agreement. Following is the scenario:

I have a rebate agreement type ZABC. I use it to create half-yearly rebate agreements so in a year 2 agreements.

I do not pay anything to customers within validity period of rebate agreements so no partial payments within validity period. My customers have to claim the accrued amount with some documents after the validity period(with in three month) and then we pay the amount manually (no automatic settlement).

Problem is at any given point of time i always have 2 open rebate agreements of a customer (one of previous period and one of current period). For reporting needs I have to keep both agreements retroactive up-to-date so both agreements always have money in it. Users are making mistakes in selecting the agreement and are paying from one which is of current period. How do i stop them from doing this?

Sorry I am new to sdn don't know how to create new thread so posting my question here.....

[r_rajeshkumar]

Hi,

 Do I need to use two different G/L accounts for ERB and ERU? 

Check with your FI guy as to which account they are going to use for the two. Accordingly assign the same.

Regards,

Rajesh Kumar

[Former Member]

hi

Q.While creating the Rebate Agreement record (VBO1), what does the Amount and Accrual field refer to? Which one should I use?

A. Basically u hav to maintain the same value fro both bt accruals will be negative becoz it accumulate into accrual account for cusyomer which they can either settle down or convert into sales deals..

thanks

mk