Rebates offset against loans

[Former Member]

Ho Experts

In company X loans are given to some customers at a favorable rate of interest, tying them into buying products from the company. Rebates then are used to clear the loans as and when they are paid.

Company X needs to ensure that a rebate is not sent in the form of a payment directly to the customer but instead clears any outstanding balance on their loan.

How can we ensure this?

company X want the choice whether to offset the rebate against the loan or to send the rebate out directly without offsetting.

Any help would be muc appreciated

[Former Member · Accepted solution]

Hi James

need to know couple of things now how would the system know what loan is given to which customer i mean how is that maintained in SAP ?

now regarding offsetting this rebate against a loan is its maintained in SAP seems to be possible where you the rebates would hit a particular G/L account for that customer so you can take the value from there and square off from the loan which is maintained in SAP ( i guess this loan would be maintained as a Credit to customer and you can square this off againist it may be you might need to create another G/L account from finance point of view )

Hope this gives some clarity

Cheers