Rebate Agreement Processing in CRM 

Purpose

You can use this process to define, track, and perform accounting for rebates. A rebate is a special discount paid retroactively to a customer, and is based on specific terms and conditions that are defined in a rebate agreement. The goal of granting rebates is to build long-term customer relationships.

Prerequisites

You have negotiated the conditions of a rebate with a customer.

Process Flow

The following business process runs on the CRM Server:

       1.      Create rebate agreement

You define the conditions of the rebate in a rebate agreement. The rebate agreement is a business transaction in which you record information such as the rebate recipient, the rebate value, the validity period of the agreement, and the criteria on which the rebate is based.

In a rebate agreement, you can also specify  the accrual and settlement parameters for a particular rebate.

       2.      Release rebate agreement

By releasing the agreement, you indicate that it is active and relevant for rebate processing.

       3.      Calculate and settle rebate

As sales volume is generated, the system performs billing for sales orders and releases billing document to accounting. It checks each billing document to determine whether it is relevant for rebate processing. For relevant documents, the system:

¡        Calculates the rebate amount based on information defined in the rebate agreement

¡        Posts accruals in accounting

You can trigger settlement for a rebate agreement or set up a system job to periodically run settlement. During settlement, the system:

¡        Calculates the rebate payment amount on the basis of the cumulated sales volume

¡        Reverses accruals that have been cumulated

       4.      Create credit memo for rebate

When you perform a rebate settlement, the system automatically creates a credit memo and makes postings in accounting.

       5.      Reverse rebate accruals

The system reverses the accruals posted in accounting for the rebate.

For more information about the rebates functionality in mySAP CRM, refer to the documentation on the SAP Help Portal (help.sap.com): Documentation ® mySAP Business Suite ® mySAP Customer Relationship Management ® Components and Functions ® Sales ® Rebate Processing.