How to do rebate processing

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

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 porocess. 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.

This is broadly the outline of the rebate process.

Note : I recomend you to study the theory part of why rebate and why not a discount.
This will help you understand better.

May be I can help you with rebate process.(IN -IMG)
1. define a rebate agreement type
2. define a condition type group
3. define a condition type and place this condition
Type in the pricing procedure.(REQUIREMENT=24)
ALSO IN THE PROCEDURE- ACCRUAL KEY = ERU
YOU ALSO HAVE TO DO THE ACCOUNT DETERMINATION FOR REBATES.

Once you have defined all the 3 and assignment starts.

Assign the agreement type to the condition type group
Assign the cond type group to the condition type.

Condition technique is also used in rebates.
REBATE ACTIVATION- IN CUSTOMER MASTER, SALES ORGANISATION AND FOR THE BILLING DOCUMENT.

After having done this please proceed to maintain the condition record for the rebates (transaction code-vbo1)

Note: if you maintain the requirement coloumn with the requirement as 24 – the rebate will be affected in the billing document and if you dont give the requirement as 24 your rebate will be affected in the sales order.

The rebate process is completed when you have created a credit memo to the customer.

The document type for the partial settlement is R3.

Please make sure you open two screens SO THAT YOU CAN COMPARE THE NEW ENTRIES WHAT EVER YOU’RE DEFINING WITH THAT OF THE STANDARDS or first you try with the standard condition type boo1, boo2
boo3 boo4.

AFTER YOU HAVE FINISHED A COMPLETE SALES CYCLE OF CREATION ORDER , DELIVERY AND BILLING.
GO TO THE CONDITION RECORD IN CHANGE MODE (VB02) AND SETTLE THE ACCOUNT PARTIALLY.

In a simple way,

1. First you need to create a Rebate agreement.
2. Create condition record for rebate giving the rebate rate and accrual rate.
3. when the rebate relevent billing doc is generated, the rebate and accruals are determined and posted in a seperate GL account as a noted item – amount to be settled. Also it gets copied in the rebate agreement.
4. create settlement run using credit memo request and then credit memo to settle this amount with the customer.

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Categories: PO-Pricing Procedure | 2 Comments

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2 thoughts on “How to do rebate processing

  1. Swahal

    Its a good article.
    Do you have one for rebate processing in Purchasing?
    I’d be glad to receive it.

  2. Pingback: visa payment processing

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