Rebates

[Former Member]

Dear All,

What is the difference between rebates and discount?

Regards

Nirmal

[former_member550050]

In addition to what our friends said Rebate is a long term understanding that you make with a customer for a defined sales volume and the accurals he can accumulate and encash it at his convienience and can be paid retooactively also.

Discounts are normal discounts specified for a particular time and settled then there itself in normal business practises

In SAP Discounts and other things are normally reflected in sales order and the same is reflected in billing

But Rebates are reflected only in billing documents by using a routine in Pricing procedure and settled thro credit memos to the ncustomer after generating 4 or 5 billing documents

Regards

Raja

[Former Member]

Hi

Plesas some one clear me with this doubt.

Where we can mention volume -?

I mean how the system knows worth of sales voleme -?

Thanks

Kris

[Lakshmipathi]

Dear Nirmal

A rebate is a special discount which is paid retroactively to a customer. This is based on the customer's sales volume over a specified time period. Over a period of time, some amount will accrue and it will be settled seperately.

Discount is offered where you need to promote your business. It may be for various purposes like, Cash Discount, Trade Discount etc., which will be offered then and there against an invoice.

thanks

G. Lakshmipathi

[Former Member]

Rebate Agreement is an agreement between business and customer .This agreement takes the form of special discount paid retroactively to the customer. The discount is based on the sales volume for the customer over a specific time period. Rebate is only relevant if the customer purchases the required sales volume.

Discount is given on a transactional basis to the customer.

[Former Member]

Hi,

rebates are special kind of discounts which will be given after reaching a sales volume within certain time.

Ex: if the customer purchase 100000 rs of material before august , he will be given 10 % extra discount.this is called rebates..

i think u r aware of discounts.

ex: material discounts,customer discounts,etc..

i hope it will be helpful to u..

regards..

yogi..