Issue with Rebate

[Former Member]

I have a rebate schedule set up, however, every time i process a return it calculates the rebate for that return, how would i stop it from doing that? so, basically, for example, someone places an order for 1000 qty and on that 1000 i give him a $100 rebate. now 500 of those 1000 are damaged, and he returns 500, and as of right now the system is issuing an addition rebate on that 500 qty that is returned (an additional $50 rebate on top of the initial $100 rebate). why is it doing this and where would i change this?

thanks!

[Former Member]

hi,

where you are raising return order system will show you rebate $50 on pricing when you post the document in to accounting at that time this can be done proper entry and also $50 can reversal.

[Former Member]

i process a return order, do good receipts, it and process credit memo. it shows me the rebate amount in the return order as well as the credit memo.

[Former Member]

anyone???

[reazuddin_md]

As I know, system behaviour is as proper. Because , when you sold the goods of 1000 qtty, as agreed you have to reserve the accrual amount of $100.

& when the same customer returning the goods, then company has to reduce the accrual amount as well.

reason, where rebate is activated for returns too.

otherwise,

there is a chance of customer will buy 10,000 qtty & rebate reserved $1000. after sometime customer returned goods 9000 qtty, then actual business is only 1000, company should pay for 1000 qtty($100) only, not for 10,000 qtty($1000).

so, when you create Credit for returns to the rebate relevant customer, accrual amount will be reversed & reserve amount of to be paid will be debited.

[Former Member]

yes, that totally makes sense but i don't think you're understanding my issue. i'll try to explain again... an order for a 1000 quantity is created, rebate for that 1000 qty is $100. after a while customer returns 500 qty of that 1000 qty, but the system issues an addition amount for that 500 qty being returned. the customer is getting credit (rebate) for something he is returning. so, customer gets the initial rebate on that 1000 qty and then on the return, he's getting an additional rebate for returning 500 qty. why is it doing this and how would i change this?

it's doing this at the order level and at the billing level. thank you.

[reazuddin_md]

Got your requirement in your initial post itself,

based on theory explained, I want you to check the accounting docuemnts generated in Billing document: Credit for returns.

Ok as part of FI postings,

after billing

Regular sale:

Customer Dr

sales Rev Cr

Rebate a/c Cr

Sales returns:

Customer Cr

Sales rev Dr ( if the same a/c assigned for sales returns)

Rebate a/c Dr

Assume that, Requirement-24 is assigned to rebate condition type in pricing procedure, because of which, rebate will appear only in Billing document.

is the same a/c'g entries happening , if not let me know your query along with A/c'g entries.

would be helpful for clear understanding

[Former Member]

i just explained what was going on? a sales return is revenue dr, rebate a/c cr.

[Former Member]

so, any suggestions anyone? why is my rebate behaving this way??