Rebates- Settlemet Article ?

[Former Member]

Can any one tell me what is Settlement Material in VBO1 ?

Rajendra

[Former Member]

Bascially, From costing prespective the rebate amount should go to one of the Material . Normally companies have custome rebate or material rebate. in case of customer rebates its fine that is charged as promotional activity in costing FICO profit center. But in case of material rebates, the cost should to the respective profit centers hence we require a dummy matrial where the costs can be accumulated and show in the profitabltiy analyis.

Reward points if this analysis helps

Thanks

Kamal

[Former Member]

Bascially, From costing prespective the rebate amount should go to one of the Material . Normally companies have custome rebate or material rebate. in case of customer rebates its fine that is charged as promotional activity in costing FICO profit center. But in case of material rebates, the cost should to the respective profit centers hence we require a dummy matrial where the costs can be accumulated and show in the profitabltiy analyis.

Reward points if this analysis helps

Thanks

Kamal

[javed_ihsan]

Hi

Settlement material in Rebates:

Identifies a material that is specially created for and used during rebate processing.

This will be required when your rebate agreement is not based on material but based on some other factor (for example, a customer ). The rebate material provides important material master data (for example, for account determination) so that the credit memo can be successfully processed.

If your rebate agreement is not based on material then you must create a special material master record for a rebate material. You can create a dummy material for this.

Hope this answers your question. If useful then dont forget to reward points.