Using scales in rebate agreements

[former_member839993]

Hi Everyone,

I have created an Incremental Rebate Agreement for a customer. I want to accrue at 2 different rates using the scales. However, every combination I have tried, they only accrue at the 1st rate and ignore volume and rates change in the scales. Please can you have a look at my example and explain how I should have entered the scales. I put a rate of £0.01GBP/M3 up to 299,000L and from 300,000 litres up to 10 million litres a rate of £2GBP per M3. The customer has had over 500,000 litres delivered since starting with us on 30.06.10. System is not proposing £2GBP as desired, please guide me to handle this issue. System ideally should propose £2GBP but instead it is proposing £0.01GBP. Please throw some inputs from your side.

regards,

US

[Former Member · Accepted solution]

Hi,

That is absolutely correct.

In Rebate Agreement, system takes the first rate all the time in the Billing document and accrual also will be posted for the first rate from the scale.

In your case, whatever may be the volume you bill, system will take 0.01 GBP per M3.

You have billed, 500,000 litres.

System will take 0.01 GBP per M3 as it is first rate in the scale.

But, it will be updated in the Rebate Agreement Sales volume screen.

Now, go to your Rebate Agreement screen in VBO2, go to Sales volume screen.

On the left hand side, system will show the total Rebate discount the Customer is eligible for if you want him to get the higher rate as per the scale.

On the left hand side, the actual accrual posted is shown.

Suppose, the actual accrual posted with the first rate (0.01 GBP) is 10 GBP on the left hand side and on the right hand side 2000 GBP if you will give the higher rate.

In Rebate, it is upto you whether you want to give him the benefit of higher rate or not.

If as per the condition/caluse you specified, if the customer is eligible, then you may extend the higher rate of Rebate discount.

In that case, you need to post the difference amount (2000 GBP - 10 GBP = 1990 GBP) as Manual accrual.

So the total amount will now be as 2000 GBP (shown in the right side of the Sales volume screen of Rebate Agr).

There is also a t.code to see the difference amount to be posted as manual accrual but I do not remember as I am not infront of the system.

Possibly it is VB(7 or something like that, but you can calculate manually also.

The above is a standard functionality of Rebate as it is a special kind of discount which you may or may not give to the customer as Rebate is normally accompanied with some rules or conditions for which Customer must qualify.

Regards

Pradyumna

[former_member839993 · Accepted solution]

Hi Pradyumna,

Please let me know whether this is standard functionality. If that is the case then why scales option is given in rebates? To my understanding, this is also based on condition technique and ideally it should pick £2 GBP but instead it is taking £0.01GBP. Please let me know whether this is a standard functionality where-in whatever scales you maintain system would propose the first value only, it is upto you to change it manually according to your liking(according to you).

regards,

US

[Former Member · Accepted solution]

Hi,

This is a standard functionality and it is logical also.

As I have already explained to you that even though Rebate is one type of discount, but it is a special kind of discount which extended to the Customer only if he qualifies for it.

A quantity discount K004 and Quantity Rebate are not same.

You might not have maintained any criteria/clauses in your project, but Rebate normally contains some clauses/criterias.

If the Customer do not qualify for that then even if he has purchased a big volume still we may not give the full rebate discount to him.

That is why it comes under Agreement under Master data.

Some time we may want to give partial amount also and close the Rebate if the Customer do not comply as per the conditions/criterias. we can include all these in the long text as per the requirement of the client in the project.

Hope, it is clear now.

Regards

Pradyumna

[former_member839993 · Accepted solution]

Hi Pradyumna,

Thank you for your quick response. In that case please let me know, if i maintain/the customer satisfies those criteria/clauses can this scale be triggered automatically instead of manually maintaining it? Please let me know if this can be triggered automatically.

regards,

US

[Former Member · Accepted solution]

Hi,

This is not possible in standard.

In my view, one should not go for it , if it is not very much required as you have lot of flexibilities in standard.

You may talk to your ABAPer regarding this requirement.

In my last project, I had explained this standard functionality and the flexibilities to our client and they had accepted it very well.

Regards

Pradyumna