Use of Rebate?

[Former Member]

Hi ,

I come across that use of Rebate is to give best price based on scale volume within specified period for a customer.

My question is that since we have scale type in condition type ,we can give price based on some volume then why we are going for Rebate Processing .

Also i want to know whats the difference between rebate and discount.

***It would be better if explaination are based on real time scenario.

Thanks in advance

Ganesh

[Former Member · Accepted solution]

hi

the main diff between rebate and discounts are;

1) rebate works on certain target settings within the defined timelines,but discounts are not .

2) rebate needs an agreement well in advance ,but discounts not reqrd.

3) rebate is an separate fi document for AR and AP adjustments,discounts are not.

4) rebate itself is an separe customising component in sap,discounts are part of pricing procedure.

hope it is clear.

reward if it helpful !!!!!

[Former Member]

Hi Ganesh,

Please award points to the replies.

Its a moral reponsibility and courtesy to give moral support to the consultants who are sharing their time, experience and knowledge.

The consultants who are giving answers are mostly working in big companies.

The experience which they possess and being shared should be accomplished by the way of acknowledging them and supporting with the way we can.

Mohan

[Former Member]

HI Ganesh,

As Others have explained Rebate is aTurn over discount whichis given.

Simple Ex would be: You have a Dealer who sells your products. NOrmally you give him 5% discount on all products. On particular product line (Equipmen) which a company wants to promote you will give him extra discount. For instance the annual target for equipment to dealer is 2Crs you tell him incase you achieve 2.5Crs of sales on entire sales of equipment dealer would get additional 3% discount.

Hope this provides some understanding. Also how rebate processing takes place in SAP go thr below link:

<a href="http://www.sap-img.com/sap-sd/how-to-do-rebate-processing.htm">Rebate Processing</a>

<a href="http://help.sap.com/saphelp_47x200/helpdata/en/4a/ac853478616434e10000009b38f83b/frameset.htm">Rebate Arrangements</a>

Reward if it helps

regards

Srini

[Former Member]

Hi

Rebate is a special kind of discount offered to customer depending upon the agreement. Rebate amount is paid once the agreement is over. The rebate amount will get accrued for the whole period and this will be paid to the customer at the end of the rebate agreement..

Where as discount is paid on the spot to the customer,

Reward if it adds value

Regards

MBS