Rebate : Maintaining Slabs for material rebate

[prasanna_kumar4]

Hi,

Now, My requirement is: How can we configure the system for following requirements.

It is Material Rebate i took Standard SAP condition Type

We want to decide the slab for rebate: For example:

a. If customer purchase the material More than 25,000 Meters then rebate is 1%

b. If customer purchase the material More than 50,000 meters then rebate is 2%

c. If customer purchase the material More than 1,00,000 then rebate is 3%

i searched in Forum i couldn't able to find out

please guide me how to solve the issue for that what are the settings i have to do in condition type under the scale / Qty

Regards,

Prasanna

[Former Member · Accepted solution]

1. You can achieve this through your condition type which is used in your agreenment

Ex: Customer/Material Rebate

Go Tcode: V/06

Condition type - B001

Click on Condition detils

Goto Scales - Select Scale Basis - M Time Period Scale-Month

Save the Condition

Check the Effect. In your agreement.

OR

You can also do partial settlement by using Tcode: VBO2

further details you can follow this below link

http://www.erpgenie.com/publications/saptips/052005.pdf

Regards,

MH

[prasanna_kumar4 · Accepted solution]

Hi,

My client is giving the Material Rebate on monthly basis,

if customer will reach this much of qty he will get this much Rs

For example : if customer reach end of the month 25,000 meters he will get 1 Rs for 1 meter so total is 25,000 Rs

if customer reach end of the month 50000 meters he will get 1.5 Rs for 1 meter so total is 75,000 Rs

how to configure in SAP and also one more point is

1.The above qty like 25,000 or 50000 meters he / she will reach multiple sales orders and multiple billing documents how system will calculate the rebate

for example 1 . My first sales order qty is 10000 meters and delivery happened and coming to the billing is system will calculate the Rebate ?

how can i see the end of the month how much qty is billed and how much money customer got as a rebate

Can any help me how to solve the issue ?

Regards,

Prasanna

[former_member182378 · Accepted solution]

Questions, comments from Prasanna = in Italics

From Typewriter = bold

It is Material Rebate i took Standard SAP condition Type

We want to decide the slab for rebate: For example:

a. If customer purchase the material More than 25,000 Meters then rebate is 1%

b. If customer purchase the material More than 50,000 meters then rebate is 2%

c. If customer purchase the material More than 1,00,000 then rebate is 3%

Select cond type BO02, in V/06 change Cond type = A (percentage)

Rebate agreement = 0002 (material rebate)

Condition gr = 0002; assign BO02 here

assign Cond gr to Rebate agreement

Check if BO02 is in your pricing procedure with req 24.

Above is pretty much standard rebate configurations.

In VBO1 create "Rebate agreement record", click on "Scale" for condition and give the above scales. Important here is the accrual rate.

Say e.g accrual rate = 2,5%

When you create bills, irrespective of the amount in the sales order, the value of BO02 would also be 2,5% of Rebate Basis.

My client is giving the Material Rebate on monthly basis,

Month settings you have to do in your agreement 0002 & in your Agreement in VBO1

For example : if customer reach end of the month 25,000 meters he will get 1 Rs for 1 meter so total is 25,000 Rs

if customer reach end of the month 50000 meters he will get 1.5 Rs for 1 meter so total is 75,000 Rs

PS - discount is different from accruals

above you have discounts, To 25,000METERS, 100%, in VBO1

1.The above qty like 25,000 or 50000 meters he / she will reach multiple sales orders and multiple billing documents how system will calculate the rebate

The accumulation of the amount of money to be paid to the customer as discount (rebate) is called accruals. This concept is used for Rebate Agreement. With every bill created accrual shall be collected (e.g. 2,5%).

Note - accrual is different from discount rate - That is why you always saw 2,5% being accrued.

how can i see the end of the month how much qty is billed and how much money customer got as a rebate

If you have made settings of credit memo creation automatic, then query that billing type and see all the amount. Also you can see the amount in VBO2 in your agreeement. (please check this, not fully certain)

I think with the above I have answered all your questions.

[prasanna_kumar4 · Accepted solution]

Thanks for Reply Mr.typewriter,

if you don't mind can you please explain how to maintain the scales

if customer reach end of the month 25,000 meters he will get 1 Rs for 1 meter so total is 25,000 Rs

if customer reach end of the month 50000 meters he will get 1.5 Rs for 1 meter so total is 75,000 Rs

this point i m not clear because I tried its not working

go to T-Code VBo1 and enter the customer , after that i click on the condition, in that i entered the material and select the material and click on the scales , here only i have a doubt how to maintain

how to maintain those into scales ? , please guide me

Regards,

Prasanna

[Former Member · Accepted solution]

Check the scale you have maintained for Conditions in VBO2

It should be

From 0 1 Re

25001 1.5Rs

Pl maintain the scales as above and check

And also check the control data for scale Ascending or Descending

Senthils

[former_member182378 · Accepted solution]

Scales -

Go to VBO1 -

Material = your material

Amount = 100%

Accruals = ??

How much is your accrual %? As explained earlier, accrual shall collect for every bill made for this particular customer (depending upon setting agreement type i.e. customer or material agreement type etc.)

Click icon "Scale"

Give From 25000 METER, Amount = 100%, Accrual = ?%

From 50000 METER, Amount = 150%

Edited - Amount in bold is NOT yet final. Prasanna tell me what is the rebate basis value of above 25000METERS & above 50000METERS? (see in pricing procedure...PR00 - discounts etc. etc.)

& then we can calculate the Amount (above field in VBO1)

Please test it.

Irrespective of sales order 30000Meters or 50000Meters, accrual % shall be collected & seen in VF03, Tab Condition, cond type = your rebate cond type (e.g. BO01)

Edited by: Typewriter on Jul 13, 2011 11:10 AM

[prasanna_kumar4 · Accepted solution]

Thanks for reply,

I tried what you said its not calculating if you don't mind can you check in your system and tell me and also Check value " Descending "

Is there any configuration is required ?

Regards,

Prasanna

[Former Member · Accepted solution]

GO to V/06 and Check the control data for the condition type

Scale Basis - the scale can be based on quantity, weight, or volume

Scale Type - scale qty cna be changed to FROMor UP TO for better understanding of scales

Calculation type - to calculate price based on Qty , Volume or weight

Check Value - To enter sacle values ascending or descending

Check these values in condition type and customize based on your requuirement

Senthils

[prasanna_kumar4 · Accepted solution]

Hi,

In my Condition Type i maintained like this

1. Condition Class : Expense reimbursement (C)

2. Calculation Type : Quantity (C)

3. Scale Basis: Quantity Scale (c)

4. Check Value : Descending (A)

5. Scale Type : SPACE

based on that guide me is correct to meet my requirement and also tell me if yes how to maintain the SCALES

If no guide me what are the changes i have to do

Regards,

Prasanna

[former_member182378 · Accepted solution]

Prasanna,

Answer my last post, maybe I can give you the answer.

I have tested it.

[prasanna_kumar4 · Accepted solution]

Hi,

MY pricing structure is like this

10 ZJOB Job work Charges

20 JASS Assessable Value (statistical , Manual )

30. ZINS Insurance charges ( based on 10 , header level we have to enter manually)

40 Basic Price 10 to 14

50 Basic Price +Insurance 30 to 40

60 Rebate Basis (Sub total 7)

70 Net value for the Item (Subtotal 2 & requirment 2)

80 BO02 Material Rebate 60

please guide me

Regards,

Prasanna

[former_member182378 · Accepted solution]

Prasanna,

You are basically wanting for greater than 25000METERS; you want to give 1Rs per meter.

If you give a % say e.g. 10%; system is calculating this - accrual - percentage on the basis of "Rebate basis" value. (If you go to V/08, rebate cond type has From 400.)

I want to know what is the value of Rebate basis for material from 25000Meters to 50000METERS

in other words - e.g. 30000METERS, what is the value of Rebate basis?

Say it is 60,000 Rs. = Rebate basis

you want to give customer, 1 Rs per METER, accrual = 30000 Rs

So in Amount in VB01 % value = (30,000/60,000) X 100 = 50%

[prasanna_kumar4 · Accepted solution]

Hi,

Here my client is giving the Material Rebate based on that qty only

Below 24,999 Meters is not eligible for Rebate

25000 Meters to 49,999 meters : 25 Paise per 1 Meter

50,000 meters to 74,999 meters : 50 Paise per 1 meter

75,000 meters to 99,999 meters : 75 Paise per 1 meter

above 1 Lac Meters : 1Rs per 1 Meter

It is Monthly Basis

Regards,

Prasanna

[former_member182378 · Accepted solution]

Hi,

Prasanna,

The below setting in V/06 are correct.

In VBO1 go for scale settings, it should work fine.

As I explained earlier, ACCRUALS are different from discounts. What is your accrual rate?

Furthermore these settings are standard rebate settings, if you are having an issue, please explain in detail the issue.

In my Condition Type i maintained like this

1. Condition Class : Expense reimbursement (C)

2. Calculation Type : Quantity (C)

3. Scale Basis: Quantity Scale (c)

4. Check Value : Descending (A)

5. Scale Type : SPACE

Edited by: Typewriter on Jul 13, 2011 1:36 PM

[prasanna_kumar4 · Accepted solution]

Hi,

In my Condition Type already i maintained like this what is said

1. Condition Class : Expense reimbursement (C)

2. Calculation Type : Quantity (C)

3. Scale Basis: Quantity Scale (c)

4. Check Value : Descending (A)

5. Scale Type : SPACE

As I explained earlier, ACCRUALS are different from discounts. What is your accrual rate?

I didn't understand this point

can you please explain and also how to solve my issue

Regards,

Prasanna

[former_member182378 · Accepted solution]

Prasanna,

Please read one of my previous posts where I have explained accruals and your related question

In settings you have done in V/06 for your rebate cond type are OK.

So my following question is what is the issue with scale etc.?

[prasanna_kumar4 · Accepted solution]

Hi,

The accumulation of the amount of money to be paid to the customer as discount (rebate) is called accruals. This concept is used for Rebate Agreement. With every bill created accrual shall be collected (e.g. 2,5%).

Note - accrual is different from discount rate - That is why you always saw 2,5% being accrued. -

Even i am not sure how i have to ask client regarding accruals rate

and also i spoke to that person who is handling this rebate he said once customer will reach the above what i mentioned the Slabs then only he / she will get the rebate otherwise won't get

If you don't mind can you please tell me how to solve the issue and how to maintain the scales in sap

Regards,

Prasanna

[former_member182378 · Accepted solution]

In VBO1, you can see the accrual % field.

Accrual is different from the discount % you negotiate with the customer. thus you donot ask customer about accrual rates. I suggest you go to your Financial staff / consultant and ask him to explain accruals to you.

In simple words -

There is a bag in which you put money on the basis of each bill generated for customer. This money is the calculated amount of how much customer shall be refunded. If the conditions are reached say e.g. more than 25000 Meters then discount/ refund amount shall be give by creating credit memo. After that the accrual amount shall decrease by the amount given by credit memo.

The main thing is you have to read the theory. Google it and read. Explaining here shall not be same as you reading the theory (provided by SAP). & Ofcourse ask your financial consultant.

I hope my posts have been helpful

[prasanna_kumar4 · Accepted solution]

Hi,

Now i got the point you means say that at the time of invoice system will calculate the some percentage like suppose i mentioned accruals 1 % each and every billing system will calculate 1 % based on the Qty ( if i am wrong correct )

I spoke to Financial people as well as marketing people they said presently they are maintaining any system

how they are maintaining the system is end of the month they will check all the billings for all the customers based on the material

SO they are not maintaining any proper system

based on the above statement please guide me how to solve the issue and also how to reach they requirement into SAP

can we maintain our own accrual % ?

how to handle My pricing Structure because based on that value and few values add , after that they will calculate the Excise ? '

Is there any effect in the Pricing procedure (Structure )?

Regards,

Prasanna

Edited by: prasanna_sap on Jul 14, 2011 10:26 AM

[former_member182378 · Accepted solution]

Prasanna,

All your questions is your latest post could be answered by reading the theory for accruals (& rebate agreement).

Furthermore, how much accrual % to set is something which your company internally has to decide & has to come from the Financial staff.

I can not help you any more with this thread, as mentioned you shall have to read the theory, for this part.

I hope my posts have been helpful.

Thank you!

[prasanna_kumar4 · Accepted solution]

Hi,

Ok i can understand

can you tell me one thinking for example if i take accruals percentage 2 % based on that guide me how to maintain the above slabs which i mentioned in the earlier post

please guide me based on that so further i can go ahead , otherwise we will fix one % and do it

Regards,

Prasanna

[former_member182378 · Accepted solution]

Below 24,999 Meters is not eligible for Rebate

25000 Meters to 49,999 meters : 25 Paise per 1 Meter

50,000 meters to 74,999 meters : 50 Paise per 1 meter

75,000 meters to 99,999 meters : 75 Paise per 1 meter

above 1 Lac Meters : 1Rs per 1 Meter

Accrual is one value, & discounts have - in your scenario - 4 values. See VBO1

You can give accrual as 50P per 1meter.

We say - discounts & accruals both shall be playing thier role in rebate.

Discounts are outward facing, i.e. customer is told about them.

Accrual is inward facining, i.e. your company shall be calculating the rebate in the form of accrual per bill and (accrual value shall decrease) per credit note.

[prasanna_kumar4 · Accepted solution]

Hi,

In VBo1 Shall i maintain like this

once i click on the scales in that

25,000 meters 0.25 per 1 meter

50,000 meters 0.50 per 1 meter

75,000 meters 0.75 per 1 meter

1,00,000 meters 1 Rs per 1 meter

accruals % is 0.50 per 1 meter

give is it correct way to define the scales

if wrong guide me bcoz i am new to this scales concept and also rebate

That is the reason i m asking so many times

please guide me to solve the issue

Regards,

Prasanna

[former_member182378 · Accepted solution]

Prasanna_sap,

Yes that is correct. Please go ahead and test it (SO>DLV>BILL; VBO2 etc.).

I am willing to guide you. I am guiding you (with many replies - in this thread - with repeat or new information).

I am suggesting you to read the theory and talk with financial colleagues, that shall make things very clear for you.

I hope my posts have been helpful.

[former_member182378 · Accepted solution]

Prasanna_sap,

Yes that is correct. Please go ahead and test it (SO>DLV>BILL; VBO2 etc.).

I am willing to guide you. I am guiding you (with many replies - in this thread - with repeat or new information).

I am suggesting you to read the theory and talk with financial colleagues, that shall make things very clear for you.

I hope my posts have been helpful.

[prasanna_kumar4 · Accepted solution]

Thanks for reply Mr.Typewriter ,

once i will test in my system and i will get back to u

and also say very thanks for giving valuable information

if i get any issue i will post the issue

Regards,

Prasanna

[prasanna_kumar4 · Accepted solution]

Hi,

In VBo1, i maintained like this in scales

25,000 meters 0.25 per 1 meter

50,000 meters 0.50 per 1 meter

75,000 meters 0.75 per 1 meter

1,00,000 meters 1 Rs per 1 meter

accruals % is 0.50 per 1 meter

I created a sales order with Order qty 51,000 meters and i save

at the time of Billing I raised 25000 meters system is calculating based on "Condition value "

i.e the price of each meter for finished material is 30 Rs, ( 25,000 * 30 = 7,50,000 = Condition Value )

System is calculating Accruals based on the Condition Value ( 7,50,000) but in my case system has suppose to calculate based on Qty i.e (25,000 * 0.50 )

Can you please tell me what are the settings i have to do ?

I am waiting for reply how to solve

please guide me

Regards,

Prasanna

Edited by: prasanna_sap on Jul 18, 2011 7:00 AM

[prasanna_kumar4 · Accepted solution]

Thanks for giving the Valuable information Mr. Typewriter

It is Solved

Regards,

Prasanna

[former_member204407]

Hi Prasanna

maintain scales in VBo1 for BO02

a. If customer purchase the material More than 25,000 Meters then rebate is 1%

(calculate for 1%to the total value that value maintain in amount colum) do it for 2% and 3% also

see example of yours :

Scale quantity- Amount

25000 (suppose your giving 1% value will be -25000*1%=250) 250

50000 (suppose your giving 2% value will be -50000*2%=1000) 1000

100000 (suppose your giving 2% value will be -100000*3%=3000) 3000

hope its resolve your issue.

Regards,

Krishna.

Edited by: kris_hna on Jul 9, 2011 3:09 PM

Edited by: kris_hna on Jul 9, 2011 3:13 PM

[prasanna_kumar4]

Hi,

I tried already in T-Code VBO1 , i enter the agreement Type "0002", i select the customer and click on the Condition in that i maintained the Condition record for that materia like this XXXX material 1%l . After that i select the line- iitem and click on the Button "Scales" in that i maintained

25,000 1 %

50,000 2%

1,00,000 3 %

Its monthly base

i created a sales order with order qty is 55,000 meters. at the time of billing system is calculating 1% , in that case system suppose to calculate 2 %

Mohammad @ i tried what u said in the T-Code V/06 when i select the Scale Basis "M" its showing error " Calculation type or scale baiss is not defined for condition class

can you please explain what are the settings i have to do and tell me am i done any mistake

i am waiting for the solution is it possible in sap? if yes guide me

Regards,

Prasanna

Edited by: prasanna_sap on Jul 11, 2011 1:53 PM