Specifying Rebate limit

[former_member184806]

Hi,

I have learned about the rebate processing that its a kind of retroactive discount. An agreement is made with the customer that if the customer purchases X amount / units of the product then Y% discount will be provided to the customer at the end of the rebate period. (Or during the rebate period if required).

I have performed the necessary pre-requisites and done the configuration and the rebate process is also working as configured.

However I am not able to find where the limit or the agreed amount / units are maintained for the agreement.

For example a customer is eligible for 2% discount if he purchases goods worth Rs 20,00,000.

When I create the condition record for 2 % rebate, the rebate amount equivalent for 2% of the value will start accumulating from the first order and even after sales of Rs 20,000 I can make a partial payment or execute final settlement.

Where can I set the limit of Rs 20,00,000 and how can the system be made to check whether the agreed amount of sales has occurred before processing the settlement.

Regards,

Vishal

[Former Member]

Hi Vishal,

Standard functionality for rebate agreements does not have a ceiling as per maximum amount for accrual.

You might accoumplish this through some development.

Regards,

Andrea

[former_member184806]

Hi Andrea,

I did not find any such setting in Standard SAP, but almost all the places where I read the theory part it says that rebate is used when there is an agreement with the customer to give a retroactive discount if he purchases certain amount / volume of goods.

As per the theory it seems that there should be some place where we have to mention what is the agreed value / units when the rebate will be given.

One thing which I am assuming is that the agreed upon amount/ volume is being tracked outside SAP, or the theory part is not entirely correct.

Regards,

Vishal

[former_member182378]

Vishal,

The theory part is correct! This is also stated in TSCM62.

Please test the comment I have made earlier.

+ some experts

TW

[former_member184806]

Hi TW,

I tired automatic settlement and it created a credit memo with ZERO value. That part is correct as you mentioned.

But if the theory is correct and if that is captured in SAP then there has to be some place where we mention the "AGREED SALES VALUE / VOLUME" for which the rebate agreement is made.

Till now from all the responses which I have got, I believe that my main point is not being understood.

As per Glynn C. Williams

"This discount is based on the sales volume for the customer over a specific time period. The rebate is only relevant if the customer purchases the required sales volume."

All the theory says that rebate / retroactive discount is ONLY relevant if the customer purchases the REQUIRED SALES VOLUME. 

If SAP is following the theory completely then there has to be some place where we can specify the  REQUIRED SALES VOLUME. 

[eduardo_hinojosa]

Hi Vishal,

Please, check the following notes

SAP Note 75778 - Consulting/troubleshooting for rebate processing

SAP Note 456458 - FAQ: How does SDBONT06 work?

SAP Note 410579 - FAQ: Rebate processing

SAP Note 105681 - Consulting: New rebate procedure

and related notes.

In the other hand, I believe you have a little confussion related with accruals. The purpose of  accruals in accounting is to share the cost in all FI periods instead in the FI period when the settlement is run. Obviously the percentage of accrual is an expected percentage. For instance, if your agreement is with an scale for 4, 6 and 8%, maybe your more reasonable expected percentage is the average, then the 6%. The excess or deficit of accrual would be made in FI by SAP.

For instance, for the pricing procedure RVAA01 the condition BO02 the accrual acc. key is ERU. So, in tcode VKOA you must have an entry, one for G/L account and other for the accrual.

So, in tcode VBO1, in conditions you'd have to see the accruals, and no the amount because you'd have a scale as other colleague mentioned. If you click on scales, you can see one entry for zero and other for 2%. Obviously the value for accrual is related with the expected value (the salesman, the CFO,..).

I hope it helps you

Regards

Eduardo

[sez41]

You can enter this information in scales on condition record level.

0 - 20.000 -> 0%

> 20.000   -> 2%

[former_member184806]

But that will just be applicable to the rebate amount getting accrued.

I mean till 20.000 there will be 0 accrual and after that accrual will take place @ of 2%.

My question is that lets assume there is an agreement of giving 2% back to customer if the total sales in the year is 10,00,000.

Now lets say that during the year the customer sales was only 7,00,000, then the accrual amount will be 14,000 but nothing is to be paid to the customer as he has not given the agreed business to the company.

So where do we specify the 10,00,000 limit or the agreed volume / revenue?

Regards,

Vishal

[former_member182378]

Vishal,

Some time back I too had this question. I think during final settlement, system will put payment to customer as 0 (or the $ value) corresponding to the sales volume. Maybe you can test this.

Other thing that I know is that the finance team does a manual check and sees that the right amount is given back to the customer, as rebate incentives.

TW