What is Rebate Processing in SAP?

Rebate process is a agreement between the company and the customer in the form of granting discounts paid retroactively to the customer on the basis of specified turnover. A rebate process 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:

IMG–SALES AND DISTRIBUTION–BILLING–REBATE PROCESSING–REBATE AGREEMENTS

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 Process 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

Master data® SD ®Logistics ®Agreements Create®Rebate agreement

To create a condition record for a rebate agreement:

When creating or changing rebate agreements, you can create Conditions to get to the Agreement Overview®condition records by choosing Goto 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 Reactivate or®Rebate calendar ®renewed automatically or not. Select Extras Remove in the Change Rebate mode.

Rebate Process with Ref. to SO

Rebate agreements are based on agreement types. Condition records which are created like B001 and B002 are linked to the rebate agreements specifying the rebate rate + the accrual rates. Condition records specify the rebate rate and the accrual rates.

Consider an example..

You decided to give a rebate of 3% to a customer whose sales vol is $1000 for a particular SO . Then the rebate value is $30..

Now when you make the rebate settlement by doiing the Credit memo and you decide to pay $27, then the accounting will be generated saying 27$ paid towards rebate and 3$ is the accrual which you owe to the customer Procedure:

Rebate agreement: Transaction code: VB01

When you go to VB01, choose agreement type 0002 and then in conditions give
Material rebate

1 20
20 30

Now create a sales order with a material say M-11 for SOrg 1000 12 00 with QTY 6

Now check VB03 and see rebate agreement it will say Accruals 120 and payments 0
since your rebate is not settled still.

Rebate settlement

Go to VB02 enter ur sales deal no, and change the agreement status to B then enter Shift+F12 and enter the amount to be paid for example u say $80

Then check in rebate payments rebate doc and partial settlement since you have not paid in full.

View the credit memo request

Remove the Billing block Go to VA01 and put order type G2 ,,,go to create with ref and enter ur Sales order no,,,save the doc now…

Then go to VF01 and enter the credit memo reqst no generated…save the doc no and go to VF02 and say release to accounting.

Now the final settlement will be this way

Accruals:120

Accrual reversed:80
Rebate pay:80
Amount payable:40

So the balance 40 is still the accrual

This is an example how a rebate will be processed with ref to a SO with an example.

Also See: Configuration of Sales Document Types