REBATE PROCESS In SAP SD
Rebate is an agreement between the company and the customer which is valid for a specific time period. The rebate agreement specifies the percentage of rebate offered to the customer during the specified period. The system calculates the rebate accruals for each applicable invoice and posts them to the corresponding G/L accounts and also updates them in the corresponding rebate agreement. At the end of the rebate agreement validity period the company will reimburse the rebate amount to the customer.
The rebate process in the following 3 steps.
-Setting-up rebate agreements.
-Managing rebate agreements and payments.
In order to configure the rebate, we shall activate the rebate in the following 3 areas.
-In the definition of required sales organization we shall check the field “rebate process active”.
-In the required customer master record (payer) we shall check the field “rebate”.
-In the required billing type, we shall check the field “relevant for rebate”.
Setting-2: Configuring condition technique for rebates.
Path: SPRO—>sales and distribution—>billingàrebate processing—>condition technique for rebate processing.
Maintain condition tables for rebate.
Create the required condition tables like customer, material, customer/material etc.
Maintain access sequences.
Create an access sequence and place the required condition tables in it. While creating the access sequence for the field “type” we shall specify the value ‘1’ (access sequence relevant for rebate).
Define condition types.
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Functionality of rebate condition type:
-The condition class is ‘C’ (expense reimbursement).
-Plus/minus’ field contain “negative”.
-The ‘calculation type’ is “percentage” for BO01 and BO03 whereas it is “quantity” for BO02.
-For the rebate condition types fields like ‘amount/percent’, ‘value’, ‘delete’ etc are not available as the rebate condition types should not be processed manually. This is controlled by the condition class ‘C’.
-The field “rebate process” specifies how the system calculates the rebate amounts. If we leave this field blank, the system calculates rebate on each applicable invoice value. If we specify the value ‘1’ the system calculates the rebate independent of the sales volume. It makes sense to specify the value ‘1’ if the company offers rebate in certain schemes such as display scheme.
-The field “provision can” specifies whether the rebate accruals are corrected or not while setting the rebate amount to the customer.
Maintain pricing procedures.
-We shall place the rebate condition type in the main pricing procedure itself.
-In the pricing procedure just above to net value of the item we shall specify a sub-total “rebate basis” by specifying the value ‘7’ for the field “sub-total” which updates the rebate basis in the table ‘KOMP’ and the field ‘BONBA’.
Rebate basis is nothing but the value based on which the rebate is calculated (net value).
-Below to the net value of the item we have to place the rebate condition types. As the rebate amount shall be calculated on rebate basis, while placing the rebate condition types in the procedure for the field “from” we shall specify the “step no” of rebate basis.
-For the rebate condition types, we shall maintain the “requirement” ‘24’ which specifies that the rebate condition types must only be determined into billing document.
-For the rebate condition types, we shall assign “accrual key” as well as “account key”. The accrual key (ERU) enables the system to post the rebate accruals from each applicable invoice to the corresponding G/L accounts.
-The settlement document (credit memo) uses the account key (ERB) to post the rebate deductions to the corresponding G/L accounts.
Setting-3: Defining rebate agreement types.
While creating the rebate agreement for the customer, we shall specify the rebate agreement type. For this we need to define the agreement type with the required functionality. For this, go to;
Path: SPROàsales and distributionàbillingàrebate processingàrebate agreementsàdefine agreement typesàdefine agreement types.
Functionality of agreement type:
Proposed valid from/proposed valid to: Specifies the default validity periods that the system automatically proposes while creating the rebate agreement. The default valid from date is very much important in regards to whether or not we offer retro-active rebate. If we leave this field blank, the rebate will be valid from the current date. If we specify the value “first day of the year” the rebate agreement will be valid from the first day of the year even though the agreement is created on the current date which is called retro-active rebate.
Payment method: Specifies the default method of paying the rebate amount to the customer. For example, it can be credit memo or check etc.
Default status: Specifies the default status of the rebate agreement. Generally it will be “open”.
Condition type group: Specifies the corresponding condition type group of the rebate agreement type.
Verification levels: Specifies whether the system displays all the billing documents in the rebate agreement based on which the rebate is calculated or it displays the totals depending on the payer etc.
Different validity period: If we check this field, the validity period of rebate condition record may differ from the validity period of rebate agreement.
Payment procedure: Specifies whether the rebate shall be paid up to the accrued value or there is no limit for manual payment.
Partial settlement: Here we need to specify the document type ‘R3’ for creating partial rebate settlement request when entering the payment in the rebate agreement.
Reverse accruals: If we check this field, in the rebate agreement the field “accruals reversed” will be automatically with the rebate amount paid to the customer. It is always a best practice to check this field.
Final settlement: Here we need to specify the document type ‘B1’ for creating the document rebate credit memo request while making the final settlement to the customer.
Text determination procedure: Specify the corresponding text determination procedure for the rebate agreement with the corresponding text ID.
Save the agreement type.
Setting-4: Condition type group.
The condition type group specifies which rebate condition types are to be used for the rebate agreement. For configuring this, go to;
Path: SPRO—>sales and distribution—>billing—>rebate processing—>rebate agreements—>condition type group.
Define condition type group.
Go to “new entries” and create a group.
Assign condition types and tables to condition types group.
Go to “new entries” and assign the required rebate condition types along with condition tables to the condition type group.
Assign condition type groups to rebate agreement types.
Select the required agreement type and assign the required condition type group.
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Setting up rebate agreements
Setting-1: Creating rebate agreement.
Path: logisticsàsales and distributionàmaster dataàagreementsàrebate agreementàVBO1-create.
-Enter the required agreement type.
-Select the icon “organization data” and enter the required sales area.
-In the overview enter the “rebate recipient” and the “currency”.
-The validity period will be automatically proposed by the system from the definition of the agreement type which if required can be changed manually.
-Select the button “conditions” and maintain the condition record for the required rebate condition type.
Note: If it is a customer rebate the condition record shall be maintained for payer.
-Select the record and go to “details” where we shall enter “material for settlement”.
Note: Whatever the material that is entered for settlement, by using that only the system automatically creates the document partial rebate settlement request while making the rebate payment from the rebate agreement.
Note: When we save the rebate agreement the system generates a no. for that agreement. For this we shall maintain a no. range for the rebate agreement. For this, go to;
Path: SPRO—>sales and distribution—>billingàrebate processing—>rebate agreements—>define no. ranges for sales deals.
Setting-2: After creating the agreements the system calculates the rebate accruals from each applicable invoice and updates those rebate accruals in the rebate agreement, to see this create few invoices.
Managing rebate agreements and payments.
-To see the rebate accruals updated in the rebate agreement, select the condition record maintained in the agreement and select the icon “payment data”.
-In the rebate agreement the system displays all the billing documents based on which it has calculated rebate. To see this documents select the icon “verification levels” in the rebate agreement overview screen.
Creating partial settlements:
-In the agreement overview screen select the button “pay” and enter the required amount to be paid. Save the agreement.
-When we save the agreement the system automatically creates the document ‘partial rebate settlement request’ for the entered amount.
-Go to the overview screen of ‘partial rebate settlement request’ by using the transaction code ‘VA02’ where the system displays the material which is entered as “material for settlement” in the agreement.
-Remove the billing block.
-Go to item data of that item and select the conditions tab page where the rebate condition type is displayed twice. One is to reverse the accruals and the other is to credit the customer with the specified amount. Save the document.
-The sales document type ‘R3’ is same as ‘CR’ except the corresponding billing type which is ‘B3’ (rebate partial settlement).
-The item category is ‘B1N’ which is same as ‘G2N’ except the field “returns” which must not be checked.
Create the billing document ‘rebate partial settlement’ (credit memo) with reference to ‘partial rebate settlement request’ by using the transaction code ‘VF01’.
Note: The billing type ‘B3’ is same as ‘G2’. Apart from that for the field “rebate settlement” we shall specify the value ‘C’ (partial settlement for a rebate agreement).
-After making the payment to the customer, the field “accruals reversed” in the rebate agreement will be automatically updated with the amount paid to the customer and it also calculates the “maximum payable amount” that is left to pay to the customer. To see this select the condition record in the agreement and select the icon “payment data”.
-Like this we can create partial settlements till the entire rebate amount is paid to the customer.
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