No Rebate for customers who have exceeded Credit limit

[Former Member]

Hi All,

We have a new requirement to be configured. The requirement is :  We do not want to offer Rebates for those customers who have exceeded their credit limit or reached certain % of total available credit limit  . How to configure this scenario ?

Regards,

A J M

[jpfriends079 · Accepted solution]

As per my understanding, I don't feel you need any extra config for this scenario.Credit management should be able to take care of that.

FYI, rebate are relevant for billing.

And if your customer has exceed credit limit, then in that case credit block will get active at your sales order/delivery when:

- on sales order creation

- on delivery creation

- before PGI.

Further, you will not able proceed with settlement.

Thus, if your credit management is active. You need not worry for rebate. As you don't bill or take invoice to the account, So, your those customer will not be liable for rebate.

Wisely, you should offer rebate agreement to those customer, who are good credit rating.

Try and share your feedback.

If you have any concerns, kindly elaborate your requirement.

Regards, JP.

[Former Member · Accepted solution]

Hi JP ,

Thanks for your explanation . It is useful.

If we don't want to offer rebates to those customers who have exceeded 75% of total credit limit, How do we configure the scenario ?

Regards,

A J M

[Shiva_Ram · Accepted solution]

To fulfill this requirement, then in the pricing procedure (t.code V/08), you need to assign a requirement against rebate condition type, which checks the credit exposure to credit limit (from FD32 fields) for 75%. You can develop the routine in t.code VOFM by copying the existing routine assigned to the rebate condition type (s)  and assign the new routine against these condition types. If the condition is NOT met then, rebate value can be set to zero.

Regards,

[jpfriends079 · Accepted solution]

Yes, now when you don't want to extend rebate settlement to customer, who had already consumed 75% of their credit limit. In that case, you might need to go for additional configuration(Which you can achieve with standard config).

To do this,

1. Create new Credit Group say, Z1 - Credit Group for Rebate.

2.1. Define Automatic Credit Control for this new credit group, with combination to .credit control area & Risk Category for Sales Order.

2.2  In your automatic credit control setting, copy the existing setting for sales order. And make sure,  In Credit Limit Seasonal Factor section, maintain tolerance % as 25 and activate "Minus" indicator.

3. In Credit limit check for order types for Assign Sales Documents and Delivery Documents - Credit Management, for sales doc types for B1 - Reb.Credit Memo Req. & B1E - Exptd RebateCredMemo maintain credit limit as D - Credit management: Automatic credit control & Credit Group any Z1 - Credit Group for Rebate.

By this you will have rebate accrual will keep on accumulated for any rebate agreement. If in case customer credit exposure favorable, i.e., it is less the 75% and they are due for rebate agreement settlement for the given period. Then they can get benefit of the rebate.

But, if the condition is not favorable, i.e., customer already enjoy 75% + credit exposure. In that case whether automatic or manual way, you will not be able to settle the rebate agreement for given period.

And this will be applicable to all rebate agreement type for the customer, be it be Group Rebate, Material Rebate, Customer Rebate or Hierarchy Rebate.

Kindly visualize, try and share your feedback.

I hope this help you.

Regards, JP

[Former Member · Accepted solution]

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