What is meant by rebate in SAP?
What is meant by rebate in SAP?
A rebate 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 define the details of the rebate in a rebate agreement .
What is required for rebate processing in SAP SD?
The following are the types of rebate agreements in SAP SD: Group rebate: It allows the creation of condition records for a combination of customer/material or a customer/rebate group.
What is meant by rebate management?
Rebate Management is the process of recording what rebate method applies to a customer or product (usually called a trade agreement). Each purchase or sale is then tracked against the trade agreement so an accrual can be made, which then gets claimed or paid.
How is rebate calculated in SAP?
Rebate agreement is defined based on the client’s sales volume over a certain duration. The rebate percentage is added as statistical posting to the pricing procedure which is reflected at billing document (invoice) and accounting entry on the same/different WBS code as that of the contract/sales order.
What is rebate processing?
You use rebate processing to process special discounts that are paid retroactively to a customer. Rebate processing enables you to define rebate agreements and perform accounting for rebates given during the validity period of a rebate agreement.
What is rebate agreement?
A special discount paid retroactively to a customer once he reaches sales volume in a given period of time. Structure: Rebate recipient (the party who receives the credit memo) Currency.
What is rebate accrual?
The rebate accrual is the amount of rebate that has been earnt, but not yet received (or for customer rebates, the amount that is owed but not yet paid). For example, you may earn a quarterly rebate based on overall spend with a given supplier, but that supplier might only pay that rebate at the end of the year.
What is the purpose of a rebate?
A rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales.
How does a rebate work?
What is an example of rebate?
The definition of a rebate is a discount given to a customer at the time of purchase, or money sent to a customer after they’ve paid the full price. An example of a rebate is someone paying full price for a cell phone and sending in a form to get 10% of what they paid back.
Is a rebate a liability?
Economic performance occurs for a rebate liability when the taxpayer makes a payment to the person to whom the liability is owed (Regs. Accordingly, taxpayers cannot deduct rebates in any tax year prior to the tax year in which they actually pay the rebate, unless they qualify for the recurring-item exception.
What is the rebate configuration process in SAP SD?
Rebate Configuration in SAP SD . The rebate configuration process in SAP SD consists of ten steps: Define agreement type ; Condition type groups ; Condition technique for rebate processing ; Account determination for rebates ; Activate rebate processing ; Create a rebate agreement ; Create a sales order ; Create delivery ; Create billing document
How are rebates processed in a sales organization?
To process rebates, a Rebate agreement is created with the customer based upon certain criteria (time period, customer, material, customer-material and receiver of the rebate). A) Activate Rebate processing in the Sales Organization. Tick the Rebate Processing active check box.
How is total rebate calculated in SAP ECC?
Total rebate for the year has been calculated as 3040. The process flow diagram for Sales rebate in SAP ECC has been depicted in below image. After the creation of rebate agreement and billing document/s, Transaction VBOF (or program SDBONT06) needs to be run to update the corresponding sales volume in rebate agreement.
What does it mean to do a rebate?
REBATE PROCESS A Rebate is a discount given to customer based on customer’s Sales (Volume or quantity) for a time period. Rebates can be given retroactively. To process rebates, a Rebate agreement is created with the customer based upon certain criteria (time period, customer, material,…
