Rebate Agreements in a Trade Promotion 

Use

A rebate is a special discount granted to a customer depending on his sales volume within a specified time period. Normally you agree upon a rebate agreement in a particular sales area with a customer, the rebate recipient. A rebate agreement usually consists of several individual agreements that are stored as condition records. Each rebate agreement has a unique number and a Global Unique Identifier (GUID). Rebate agreements and rebate conditions both apply to a single trade promotion.

Variable and Fixed Trade Spends

There are two types of rebate agreement in SAP Trade Promotion Management:

·        Rebate agreements for fixed trade spends, particularly for promotion rebates.

In this case, fixed means that you define the exact payment amount when you create the agreement.

·        Rebate agreements for variable trade spends, which are usually paid out at the end of a trade promotion.

In this case, variable means that the trade spends depend on the quantity, weight or sales volume.

Rebate Payments

Rebate payments are often only made when the validity period of the agreement expires (common exceptions are fixed agreements).

·        For sales-dependent rebate conditions, the system tracks all receipts (invoices, credit and debit memos) in SAP R/3 that are relevant for rebate processing.

The system automatically posts accruals (the amount specified in the condition record), so that FI-CO accounting has an overview of the agreement’s accumulated value or the approximate sum of the rebate payments.

·        For sales-dependent rebate conditions, the system does not post accruals automatically.

Upon final settlement of the agreement, the customer is sent a credit memo for the entire value of the rebate agreement.

Prerequisites

For more detailed information on Customizing, see Customizing for Rebate Agreements.

Features

Automatic Creation of Rebate Agreements

To enable the system to automatically create rebate agreements, you must maintain the following fields in the Marketing Planner:

·        Tab page Basic Data:

¡        Planning Customer

Planning customers can be individual customers or hierarchy nodes. For individual customers, the system transfers this customer (or the partner of the Payer role) as rebate recipient to the header of the rebate agreement.

¡        Campaign Type

The system uses this field to determine the condition generation type that influences the automatic determination of condition types and condition tables.

For more information on generating conditions, see Condition Generation in a Trade Promotion.

¡        Planning Profile Group

For more information, see Trade Spends/Volumes.

¡        Planning Time

¡        Sales Area

·        Tab page Products:

You define which products you want to sell in a trade promotion.

·        Tab page Trade Spends/Volumes:

You define the fields on the Trade Spends/Volumes tab page, as well as the automatic definition of condition types and condition tables and the values for key figure planning.

When the system generates conditions, it firstly assigns a temporary agreement number to a rebate agreement. As soon as you save, the system assigns the actual sequence number to the rebate agreement. This procedure ensures that the number assignment is gap-free.

If no condition types are defined in Customizing for the incoming trade spends, the system does not generate rebate agreements during condition generation. Maintain the necessary settings in Customizing for SAP CRM: Customer Relationship Management ® Marketing ® Marketing Planning and Campaign Management ® Condition Maintenance ® Define Condition Generation Type ® Pricing Condition Types.

Rebate agreements in a trade promotion are not available in customer orders in SAP CRM Mobile.

Rebate Agreement Status

Be aware that there are two different rebate statuses:

·        Under Extras ® Display Agreements (in People-Centric UI on the Rebates tab page), you can find out the status of each rebate agreement.

·        The rebate status of the trade spend is displayed on the Trade Spends/Quantities tab page for conditions with the Rebate usage.

Both statuses are assigned to each other in the following way:

Rebate status (of the rebate agreement)	Rebate status (of the trade spend)
SPACE	Open
A	Open or To Be Settled
B	To Be Settled
C	Settled
D	Settled

The assignment of rebate status B to rebate status To Be Settled is dependent on the minimum status settings that you maintained in Customizing (see also Interaction of Rebate Agreements with SAP R/3).

Trade Promotion Status

The status of a trade promotion and the status of associated rebate agreements and conditions influence each other:

·        If you want to call off a trade promotion, you must firstly delete the rebate agreements or set the status to Settled.

·        If you block a trade promotion it has no effect on rebate agreements and rebate conditions.

·        When you close a trade promotion, the system sets the associated rebate agreements automatically to status Released to Settlement.

Splitting Criteria

A new rebate agreement is created if the conditions are generated again and one of the following values in a trade promotion with rebate agreements changes:

·        Rebate recipient

·        Agreement type

·        Condition Type

·        Trade spend

Ensure that a condition type is defined in Customizing for each trade spend.Otherwise the system cannot generate any conditions.

The trade spends are separated from each other because the payment time can differ for each trade spend. Payment is also often linked to a certain requirement that has to be checked, for example, reserving a certain shelf space for a product. Variable agreements are, as a rule, settled separately at the end of a trade promotion in one go for all customers.

Hierarchy Nodes

When hierarchy nodes are used, the system can expand the hierarchies:

·        If a hierarchy is defined for the spend type in the variable key of the condition table, the planning customer is not expanded.

The system creates only one rebate agreement for the planning customer.

·        If you have defined a condition table containing customer number or payer in the variable key for the spend type, then the planning customer is expanded into individual customers.

If different payers are defined in the partner master, the system creates at least one rebate agreement for each individual customer. This procedure is useful if the payment of one-time amounts is linked to specific requirements that have to be checked for every single customer.

Maintain the necessary settings in Customizing for SAP CRM under Customer Relationship Management ® Marketing ® Marketing Planning and Campaign Management ®Condition Maintenance ® Define Condition Generation Type ® Condition Tables.