Rebate Settlement

[Former Member]

Hi SD Gurus,

Can any one please Explain Rebate Settlement process in VB(7.

Thanx & Regards

R. Reddy

[former_member227476 · Accepted solution]

dear ramesh

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 on a material but on customer/material you need to refer to a material for settlement.

Refer the link below Pls do not use emails to exchange information

Rebate Processing in SAP

rewards if it helps

siva

[Former Member]

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.

CHAN

[former_member198268]

Hi,

A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period. It is a type of sales promotion used by marketers, primarily as incentives or supplements to product sales.

BEFORE you can create ‘Rebate’ agreements - YOUR ‘Sales Org’ has to create the ‘Settlement Materials’ for the Product Line.

The ‘Rebate Materials - Allocate the ‘Rebate Accumulated’ to the correct Product Line ‘Sales’ - THEY ARE FOR REBATES ONLY.

The transaction code for creating rebate is VBO1.

Here the rebate document is created for a particular customer ( the customer for whom rebate is allowed in the Customer Master data).

Steps to be followed to set up a rebate agreement:

1.VBO1-Create a rebate agreement.

2.VA01-Create a Sales Order

3.VL01-Create a Delivery

4.Create Billing document

5.VBO2-Settle rebate agreement

6.Approve settlement- Credit memo request is created

7.VF01-Create Credit note

Once this is done, At the end of the rebate period, you can evaluate what rebate the customer has accrued.

Within the rebate agreement we create separate condition records for each product the customer buys. These records specify the rebate amount or percentage for each product. You can also specify a pricing scale so that the customer can earn a better rebate by ordering more.

A rebate agreement is finally settled when you issue a credit memo to the customer for the accumulated rebate total.

We define the details of the rebate in a rebate agreement. In the agreement we specify, for example

• who receives the rebate payment

• on what criteria the rebate is based (customer, customer and material, and so on).

• how long the rebate agreement is valid

Because rebates are always paid retroactively, the system keeps track of all billing documents (invoices, credit and debit memos) that are relevant for rebate processing. The system can, if you wish, automatically post accruals so that the accumulated value of a rebate is recorded for accounting purposes.

Pre-requisites:

1. Sales Org and relevant billing documents are defined for Rebate.

2. Relevant Pricing Procedure which includes the pricing conditions relevant for Rebate.

3. Relevant payers have been maintained in the Customer Master data

4. Rebate agreement types

5. Rebate materials

6. Rebate Scales and Accruals

The Process is as explained above:

In the Rebate settlement there are two settlements;

(i) Final Settlement: The system automatically calculates the rebate based on

 Sales volume statistics

 Lump sum

 Deducts any previously paid rebates

(ii) Partial Settlement: Here payments can be

 limited to the cumulative accruals of the condition record;

 limited to the amount that would be paid if final settlement were presently carried out;

 unlimited.

Please click on this link to know more about the Rebates:

http://sap.allisontransmission.com/saphelp/helpdata/EN/e6/4a6dc89e0311d189b70000e829fbbd/frameset.ht...

<a href="http://sap.allisontransmission.com/saphelp/helpdata/EN/e6/4a6dc89e0311d189b70000e829fbbd/frameset.htm">Rebates</a>

Regards,

Sophia Xavier

[Former Member]

Thanx for the explanation. It was very helpful.

Regards,

R.Reddy

[Former Member]

Hi

Please go thru it very usefull.

[Former Member]

I want about rebate settlement. what exactly have to be done in VB(7.

Logistics>>S$D>>Billing>>Rebate>>Rebate Settlement