rebate

[Former Member]

Dear friends

please tell me exact meaning for "rebate" with example

regards

murali

[Former Member]

Dear Murli

1. Rebate is also one type of special discount, Which not paid immediately but paid after some specific time period say after one month or year.

2. In Big Garment Show room they are declaring Rebate for one to three month in season of mairrage say from February to june. if any customer purchase any garment he is eligible for rebate but he will not get that immediately, and he purchase again after that month say in April like this. At the end of June show room Finance deptt will calculate what will be total rebate that customer will get. then customer will get that amount in form of Cash or Materials.

Hope u will get the answer if so then award me.

Arun

[Former Member]

HI

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 process. 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.

Refer below url for more info

http://www.sap-img.com/sap-sd/rebate-process-with-ref-to-so.htm

Message was edited by:

SHESAGIRI.G

[Former Member]

Rebates are discounts with are given to customer on the basis of sales volume .

This discounts are not paid directly . They are always paid retroactively ( I.e may be at perticular milestone or at the end of finanical year etc)

In rebates we can define scales by which we can attract customer to buy more volume of product

We maintain scale like

For qty upto 1,00,000 1% Discount

from 1,00,001 - 1,50,000 1.5% Discount

1,50,001- 2,00,000 2% Discount

This way u can attract customer to buy more.

It is always for a Customer and Material combination.

Hope this help