Difference between Rebate rate and accrual rate

[Former Member]

Dear Experts,

Can you explain the difference between Rebate rate and accrual rate in rebate processing ?

If possible, give any example so that it would be easier to understand.

Thnx in advance

regards,

Sagar

[Lakshmipathi · Accepted solution]

explain the difference between Rebate rate and accrual rate

You cannot say these two terms as a difference. Rebate is an amount which will be maintained in SD and flows into billing document. This amount will accrue to FI. Through a rebate agreement, you maintain some percentage which will be considered when you create a sale order / billing. In order to pass on this amount, you need to assign an Account Key under Accruals in Pricing Procedure. Hope you got some clarify.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thnx Lakshmi for your reply.

I also agree that rebate is an amount which is derived from either sales order or billing doc. But I am very much confused with two terms i.e. Rebate rate and Accrual Rate maintained in condition records for rebate agreement. If I am not wrong, the condition technique it it the accrual rate which determined not the rebate rate.

Then what is the use of rebate rate. Also i tried to create scales for rebate, this can be done with rebate rate and not with accrual rate. Then what is its use.

Kindly explain with some example. i am sure there will be many consultants like me who will be having this problem. And senior like you only can guide on this.

Thnx in advance

regards,

Sagar

[Former Member · Accepted solution]

Hi Sagar,

I also agree that rebate is an amount which is derived from either sales order or billing doc.

No it's not; only billing documents update rebate agreements.

... two terms i.e. Rebate rate and Accrual Rate maintained in condition records for rebate agreement.

Accrual Rate = The rate used to accrue the value (provision) before settlement takes place.

Rebate rate = The rate used to generate the real credit amount to the customer when settlement takes place.

Usually both rates are set the same but, because if scales are used in the rebate rate, then it is usual to manually set the accrual rate at the expected rebate rate based on the planned sales volume.

 If I am not wrong, the condition technique it it the accrual rate which determined not the rebate rate.

Not correct; the condition technique is used to determine both rates in the rebate condition.

Also i tried to create scales for rebate, this can be done with rebate rate and not with accrual rate. Then what is its use.

Scales are used when the amount is paid on a variable rate depending on the total customer consumption. The idea is that the more the customer is purchasing, the more rebate he will receive, also on its previous purchases.

Accrual rate is fixed (no scale).

Hope it helps.

Best Regards,

Franck Lumpe

Freelance SAP Logistics Consultant

[Former Member · Accepted solution]

Hi,

>

I also agree that rebate is an amount which is derived from either sales order or billing doc.

>

> No it's not; only billing documents update rebate agreements.

I dont think so. Because, through requirement in V/08 for particular rebate condition type you can do so. Just remove the requirement and it will be used for sales order also. Kindly correct me if i am wrong.

>

 If I am not wrong, the condition technique it it the accrual rate which determined not the rebate rate.

>

> Not correct; the condition technique is used to determine both rates in the rebate condition.

But i checked in sales document system didnt change the discount according to scales. What could be the reason.

Kindly help me to understand.

if possible could you give any simple example.

Thanks in advance

regards,

Sagar

[Former Member · Accepted solution]

Hi Sagar,

I dont think so. Because, through requirement in V/08 for particular rebate condition type you can do so. Just remove the requirement and it will be used for sales order also. Kindly correct me if i am wrong.

In the standard system, there is a requirement in the pricing procedure so rebate conditions are only used in the billing documents.

There is a good reason for this: Retroactive Rebate Agreement add or modify conditions in the Billing Document only.

Thus rebate conditions in a Sales Order would only make sense as a snapshot of the current Rebate Conditions when price determination takes place. This data takes place in the DB and have very low value from a Business Point of view, in addition to be confusing to the user; therefore SAP decided to take them away. That is my interpretation at least.

But i checked in sales document system didnt change the discount according to scales. What could be the reason.

Rebate Conditions make sense only in the Billing Document, not in the Sales Order.

That is how the standard system is working => Scales for Rebates are computed on the amount or quantity invoiced; the quantity sold is not relevant. Maybe it is much more than the quantity actually shipped and invoiced!

Best Regards,

Franck

[former_member396676]

HI,

You may get more info on

http://help.sap.com/saphelp_erp60_sp/helpdata/en/dd/5611ad545a11d1a7020000e829fd11/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/4a/ac853478616434e10000009b38f83b/frameset.htm

Thanks,

Vrajesh