rebate rate and accrual rate

[Former Member]

Hello Gurus,

what is rebate rate and accrual rate ? are they the same ?

thanks very much!

[Former Member · Accepted solution]

Accrual Rate:

You can enter an accrual rate manually in each condition record. The accrual rate should reflect, as accurately as possible, the rate at which the rebate will be calculated at final settlement.

Every time you process a rebate-relevant billing document (an invoice, a credit or debit memo), the system automatically posts an accrual to financial accounting (FI). Within FI, the rebate accrual is posted to two accounts: a sales deduction account and an accrual account. The accrual account is cleared when the rebate agreement is settled with a credit memo.

Rebate Rate:

A price discount that a vendor grants a customer at a later time.

The amount of rebate depends on the invoiced sales that the customer achieves in a specified period and is defined using condition records.

[Former Member]

Hi Bo Zhang,

Yeah it is same.

Let's say there is a rebate agreement. Assume that acoording to this agreement, the customer should give a business of 1,20,000 $ per annum. If the customer gives 1,20,000$, is eligible for a rebate amount of 10%. So this 10% is the rebate rate.

Let's say there is an additional condition that this 1,20,000$ is equally distributed over a period of 1 year i.e, 12,000$ per month, then the 10% of 12,000$ i.e,120$ gets accrued every month to the customer account.So, then it is called the accrual rate.

Regards,

Raghav

[Former Member]

Hi Zhang,

Accrual Rate:

You can enter an accrual rate manually in each condition record. The accrual rate should reflect, as accurately as possible, the rate at which the rebate will be calculated at final settlement.

Every time you process a rebate-relevant billing document (an invoice, a credit or debit memo), the system automatically posts an accrual to financial accounting (FI). Within FI, the rebate accrual is posted to two accounts: a sales deduction account and an accrual account. The accrual account is cleared when the rebate agreement is settled with a credit memo.

Rebate Rate:

A price discount that a vendor grants a customer at a later time.

The amount of rebate depends on the invoiced sales that the customer achieves in a specified period and is defined using condition records.

Regards

Sasikanth.Ch

[Former Member]

Accural rate is the rate at which the rebate will be calculated at final settlement.

Rebate rate are discount rate which is stored in condn record based on volume of sale

Raghu