Rebate

[Former Member]

Dear all,

PLz sent me the detail concept and configuration of Rebate senario.

Plz send me the details about the same.

Thx & Regards,

PM

[Former Member · Accepted solution]

Rebate Agreements

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.

You can process rebate agreements when the following prerequisite conditions are met:

sales org is relevant for rebate processing

payer (customer master record) is relevant for rebate processing

billing type (invoice, credit memo) is relevant for rebate processing

Condition types for rebate agreements:

BO01 – Customer/Material or Customer/Rebate group = % rebate

BO02 – Customer/Material = quantity dependent

BO03 – Customer = % rebate

BO04 - Customer hierarchy = % rebate

BO05 – Customer hierarchy/Material = % rebate

BO06 – Sales vol independent

Creating Rebate Agreements

Logistics  Sales and distribution  Master data

Agreements  Rebate agreement  Create

To create a condition record for a rebate agreement:

When creating or changing rebate agreements, you can create condition records by choosing Goto Conditions to get to the Agreement Overview screen.

Enter the data necessary to create a condition record (for example: customer and condition rate).

Choose ENTER.

If you do not enter a value for the accrual rate, the system automatically proposes the value you entered as the condition rate.

To create a pricing scale for a condition record, select the condition record and choose Scales.

To display or change details in a condition record, select the condition record and choose Details.

It is possible to see an overview of condition records that already exist in other rebate agreements and that have the same key combination (customer/material, customer/rebate group, and so on).

To view the list, select Validity periods.

You can set for each rebate agreement whether it is to be renewed automatically or not. Select Extras Rebate calendar Reactivate or Remove in the Change Rebate mode.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi,

pl check this notes ;

REBATE AGREEMENTS:

A special discount paid retroactively to a customer once he reaches sales volume in a given period of time.

Structure:

You can define the following data in a rebate agreement:

• Validity period

• Status (whether the agreement is released for settlement)

• Rebate recipient (the party who receives the credit memo)

• Currency

• Method of payment (cheque, bank transfer etc)

Data Defined In Condition Records:

• Basis for rebate (customer, customer/ material, rebate group, etc)

• Validity period (the validity must lie with in the validity of rebate agreement)

• Cond rate

• Material for settlement

• Accrual rate

• Other control data, such as pricing scale type

Prerequisites for Rebate Processing:

• Sales orgn: must be relevant for rebate processing

• Payer: must be relevant for rebate processing

• Billing type: (invoice, credit memo etc) must be relevant for rebate processing

Material for Settlement:

You may have to create rebates that do not depend on a material, but instead, e.g. on:

• A Customer

• A Customer Hierarchy

• A Group of Materials

You will then need to refer to a material for settlement. The system uses this material when you pay out the rebate. It does not matter which material type & mat application type you use.

When you create the cond record with in the rebate agreement, the system automatically asks you to enter the no of material for settlement.

Rebate based on Group of Materials:

A rebate group consists of materials to which you want to apply the same rebate. You system administrator can define rebate group in Customizing for Sales according to the need o f the orgn.

You can assign a material to a rebate group in the MMR: view- Sales, field- Rebate Grp. When you create a cond record, you must enter a settlement material.

Rebate Agreement Types:

Agreement Type Basis for Rebate Cond Type

0001 Customer / Material % Rebate BO01

Customer / Rebate Group % Rebate BO01

0002 Customer / Material Quantity Dependent BO02

0003 Customer Percent rebate BO03

0004 Customer hierarchy Percent rebate BO04

Customer hierarchy / Material Percent rebate BO05

0005 Sales Volume Independent BO06

SPRO- IMG- SD- BILLING- REBATE PROCESSING:

• Define rebate agreements

• Condition type groups

o Define cond type groups

o Assign cond types to cond type groups

Maintain access sequence

Define condition types

Assign conditon types to conditon type groups

Maintain pricing procedure

o Assign condition type groups to rebate agreement types

• Activate rebate processing

o Select billing documents for rebate processing3

o Activate rebate processing for sales organisations

o Activate at customer level.

Define Agreement Types:

Copy & rename: 0002 & go to Details

• From

• To

• Reverse accruals: flag it on

• Manual Accrual Doc Type: Doc Type (R4) & Billing Doc Type: B4

• Verification level: payer, material

• Partial payment: Doc Type (R3) & Billing Doc Type: B3

• Rebate credit memo: Doc Type (R1) & Billing Doc Type: B1

Define Condition Type Groups:

Copy & rename: 0002. Give the same code as given to agreement type.

Assign Condition Type to Condition Type Group:

In this activity one needs to assign the cond type from the pricing procedure to the cond type group found on the rebate agreement type. The sequence no column represents the fields in the cond table that determines what the system is to use as the basis for rebate. In this e.g., 1 determines that the cond type should use the fields customer & material. The cond type group 0002 will use pricing cond type BO02. Before assigning cond type to cond type group, you have to create a cond type.

Cond Technique for rebate processing:

Create cond table

Maintain access sequence

Define cond type: BO02 is the cond type used in pricing, copy & rename.

Assign cond type to cond type group: BO02 to 0002

Maintain pricing procedure: assign cond type BO02 to pricing proc, after total discount & before freight. Assign Subtotal: 7, Account Key: ERB,

Accruals: ERU (keeping reserve money from customer money), &

Requirement: 24 (rebate will get affected in billing doc & not in sales doc)

The cond type BO02 must use cond class ‘C’- expense reimbursement.

The rebate procedure in BO02: indicates if the cond is dependent or independent of sales volume

The accruals correction proc indicates if accruals must be corrected when this cond type is accessed.

Assigning Cond Type Groups to Agreement Type:

Here you are presented with a list of agreement types as created in the system & you can assign the relevant cond type group

Activate Rebate Processing: at

• Sales orgn level: activate rebate processing for sales organisations

• Billing Document: select billing doc for rebate processing

• Customer: active rebate in CMD Sales Area Data, Billing Tab Page.

regards

sadhu kishore

[former_member204513]

Hi PM,

These are the prerequesites to be done to process the Rebate.

1. You need to activate the customer for Rebate in the customer master billing tab.

2. You need to activate the Rebate process to the Billing document type.

3. You need to activate the Rebate process to the sales organisation.

Menu path is IMG --> Sales and Distribution --> Billing --> Rebate processing.

4.You need to create one service material as material for settlement to settle the Rebate. (MM01).

5. You need to main the Rebate related pricing condition types in your pricing procedure, here you need to maintain the accrual key as well as account key.

6.Create Rebate agreement in the transacton VBO1 based on your requirement (whether that material based or customer based.

I hope it will help you,

Rgards,

Murali.