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rebate process

Former Member
0 Kudos

hi anybody nows the rebate process please tell me..

ravikumat.talluri@gmail.com

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

This is what the link says.

http://help.sap.com/saphelp_46c/helpdata/en/5d/363eb7583f11d2a5b70060087d1f3b/content.htm

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

How to do rebate processing

Rebates Processs in SAP is divided into three components

1) Configuring Rebates

2) Setting Up Rebates

3) Managing rebate agreeeements and payments

Pre-requsiistes- Check the following:

1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.

2.The Billing type must be marked as relevant for rebates.

3.The Sales Organisation must be marked as relevant for rebates.

Condition Technique :

Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention.So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16..

Use create access sequence (AS). Enter 1 in field category for rebate specific. AS after going thru the right path of maintaining access sequence for rebates.

The big difference between the rebate and the pricing access sequence is that there is no exclsuion flag available for rebate related AS. This means multiple tables for an access sequence can be aplied at the same time.

Rebate related condition types are identified by codnition class -C.

After defining and creating condition types for rebated include them in the pricing proceedure. The requirement should be 24 here which implies that the accruals are calculated on the basis of invoice/bill.

The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requiremnt 24, if u want to see reabtes at order time.

Now payment of rebates:

Payments can be maunal or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlemetn. You use partial settlement only when rebate agreement is defined for a full year but the paoyouts are supposed to happen on a monthly, quarterly or anyother specified period.

These accurals are based on sales volume and when they are posted billing is created int eh follwoing manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is created

Customer account/ is debited and

Accrual provision account is credited.

Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement

What exactly do you wish to know in Rebates? The total outline of the Rebate process or each and every step in the SAP system?

First of all rebates are more or less discounts which are offered to customers. The rebates are based on the volume of the business the customer does with you within a specified time. for eg if the customer agrees for Rs.1 Crore worth of business with u in 1 year, then you activate your rebate porocess. if at the end of the year the customer DOES achieve the target u offer him say 2/3/4 % whatever is decided. The rebates are passed on to the customer in the form of Credit notes.

The rebate can be given to the customer at one time or in installments also.

This is broadly the outline of the rebate process.

Note : I recomend you to study the theory part of why rebate and why not a discount.

This will help you understand better.

May be I can help you with rebate process.(IN -IMG)

1. define a rebate agreement type

2. define a condition type group

3. define a condition type and place this condition

Type in the pricing procedure.(REQUIREMENT=24)

ALSO IN THE PROCEDURE- ACCRUAL KEY = ERU

YOU ALSO HAVE TO DO THE ACCOUNT DETERMINATION FOR REBATES.

Once you have defined all the 3 and assignment starts.

Assign the agreement type to the condition type group

Assign the cond type group to the condition type.

Condition technique is also used in rebates.

REBATE ACTIVATION- IN CUSTOMER MASTER, SALES ORGANISATION AND FOR THE BILLING DOCUMENT.

After having done this please proceed to maintain the condition record for the rebates (transaction code-vbo1)

Note: if you maintain the requirement coloumn with the requirement as 24 - the rebate will be affected in the billing document and if you dont give the requirement as 24 your rebate will be affected in the sales order.

The rebate process is completed when you have created a credit memo to the customer.

The document type for the partial settlement is R3.

Please make sure you open two screens SO THAT YOU CAN COMPARE THE NEW ENTRIES WHAT EVER YOU'RE DEFINING WITH THAT OF THE STANDARDS or first you try with the standard condition type boo1, boo2

boo3 boo4.

AFTER YOU HAVE FINISHED A COMPLETE SALES CYCLE OF CREATION ORDER , DELIVERY AND BILLING.

GO TO THE CONDITION RECORD IN CHANGE MODE (VB02) AND SETTLE THE ACCOUNT PARTIALLY.

I hope this will be of any help to you.

In a simple way,

1. First you need to create a Rebate agreement.

2. Create condition record for rebate giving the rebate rate and accrual rate.

3. when the rebate relevent billing doc is generated, the rebate and accruals are determined and posted in a seperate GL account as a noted item - amount to be settled. Also it gets copied in the rebate agreement.

4. create settlement run using credit memo request and then credit memo to settle this amount with the customer.

Answers (3)

Answers (3)

jiteshmehta
Active Contributor
0 Kudos

Hi

Rebate is special discount paid retroactively usually for a period of 1 year based on sales volume

Configuration settings are as under

A. SPRO->Sales & Distribution->Billing->Rebate Processing->Rebate Agreements->

Define Agreement Types Tcode : VB(2

Here you define Agreement Type , main fields are Manual Accruals Order Type, this is sales document type which will be used for Rebates, this is sales document type should have order related billing assigned to it,

If you want Manual Payments you can configure it, it will create Credit Memo Request, tick reverse accruals

Also Final Settelement Sales document type and config is here.

Once you do this or you can select any standard Agreement type

0001 Group Rebate

0002 Material Rebate

0003 Customer Rebate

0004 Hierarchy Rebate

0005 Indep. of Sales Vol.

Special Mention here is Condition Type Groups

define condition type groups (Tcode VB(3 )

then Assign Condition Types/Tables To Condition Type Groups (Tcode VB(4 ),

here condtion type and table is assigned to Condition Type Groups

Assign condition type groups to rebate agreement types (Tcode VB(5)

B Condition Technique For Rebate Processing

In Standard Pricing Procedure V/08, e.g. RVAA01 please note the condition type for Rebates,

BO01 Mat/Group Rebate

BO02 Material Rebate

BO03 Customer Rebate

BO04 Hierarchy Rebate

BO05 Hierarchy rebate/mat

Also note Account Keys ERB & ERU for Account key and Accrual Key

Also Note SubTotal Filed 7 - Rebate basis KONP-BONBA, this will be assigned to Total, generally this is net value for item

Also note Requirement type 24 Only in billing doc. is assigned all above condtion type so it appears in billing only

you can refer to condtion type in V/07 for condtion type BO01 to BO05 , special mention is of two fields

1.Rebate Procedure

Leave the field blank for condition types such as material rebates where the rebate payment is based on sales volume. Accruals are then posted automatically every time you process a billing document which is relevant for the rebate agreement. The accruals amount posted is determined by the accruals rate defined in the condition record.

Set the indicator 'A' for condition types such as lump sum payments where the rebate payment is based on promotional performance, for example, rather than sales volume. Accruals are then posted manually. You decide when accruals are to be posted and for which amount.

2. Rebate: Accruals correction procedure

Controls whether an accrual is reduced, or corrected, by the amount of the partial payment received.

Procedure

If you want the system to automatically correct accruals, leave this field blank. If you do not want to correct accruals, enter 'A'. Enter 'B' if you have entered an accrual manually and do not want the system to change it.

C. Account Determination For Rebates - It is as per standard account determination , please refer VKOA for ERB and ERU

D. Activate Rebate Processing

This is at Three levels billing document, sales org and payer , all three should be

rebate relevant.

1. Select billing documents for rebate processing (TCode : OVB0) , you should

not select Proforma Invoice for Rebate Processing...

2. Activate rebate processing for sales organizations (TCode : OVB1)

3. Payer in XD01/2, please tick check box Rebate in sales area data-billing tab

E Also note in Material Master MM01/2/3 Sales Org2 field Volume rebate group This is Group definition that can be used for rebate settlement. This field can be used in condtition records

Now the Configuration is done, We can maintatin necessary data for rebate agreement.

Go to SAP Menu, Logistics->Sales & Distribution->Master Data-> Agreements->Rebate Agreement-> Create (Tcode VBO1)

Select the agreement type and enter, you can give rebate receipient -you can use SP, SH or PY, but ensure Rebate check box should be activated

Now you can maintain Conditions by clicking the condition TAB,

you can maintain the condtions as you are maintaining in VK11,

If you are using Volume Rebate group(MM02) or other Customer/Material group for Rebate Configuration then you click on Material and click on details (Magnifying glass), you can give Matl f. settl enter material which will be used for account assignment and sales details will be taken from this material

Then create the sales order for the SP

Then go to VB02 and click on Sales Volume (Business Volume) and click on execute to create Credit Memo Request.Subsequently Credit Memo can be created with reference to this Credit Memo Request.

If you have any doubt revert back

And if you find my explanation useful then do reward with points

Regards

Jitesh

Former Member
0 Kudos

hi ,

Rebates r generally given on the fixed purchase of volume from supplier .

For eg say for qty greater than 1000 price will be 10.

For this u have to maintain condition records and this will appear in condition tab of sales order at item level during sale greater than or equal to qty applicable for rebate to a perticular customer.

Determination procedure is similar to pricing procedure.

Hope this will help.

Former Member
0 Kudos

Hi,

Rebates are the discounts that are paid retroactively actively to the customer after the customer has reached the Target value.

Difference between Rebates and discounts is that discounts will be paid immediately in the salesd order, where as Rebates are paid retroactively to the customer after the taget value given by the company has been reached.

Rebates Processs in SAP is divided into three components

1) Configuring Rebates

2) Setting Up Rebates

3) Managing rebate agreeeements and payments

Pre-requsiistes- Check the following:

1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.

2.The Billing type must be marked as relevant for rebates.

3.The Sales Organisation must be marked as relevant for rebates.

Condition Technique :

Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention.So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16..

Use create access sequence (AS). Enter 1 in field category for rebate specific. AS after going thru the right path of maintaining access sequence for rebates.

The big difference between the rebate and the pricing access sequence is that there is no exclsuion flag available for rebate related AS. This means multiple tables for an access sequence can be aplied at the same time.

Rebate related condition types are identified by codnition class -C.

After defining and creating condition types for rebated include them in the pricing proceedure. The requirement should be 24 here which implies that the accruals are calculated on the basis of invoice/bill.

The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requiremnt 24, if u want to see reabtes at order time.

Now payment of rebates:

Payments can be maunal or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlemetn. You use partial settlement only when rebate agreement is defined for a full year but the paoyouts are supposed to happen on a monthly, quarterly or anyother specified period.

These accurals are based on sales volume and when they are posted billing is created int eh follwoing manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is created

Customer account/ is debited and

Accrual provision account is credited.

Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement.

Reward points if it is helpful,

Regards,

Sree