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  Rebate Processing


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 . In the agreement you specify, for example

  • who receives the rebate payment

  • on what criteria the rebate is based (customer, customer and material, and so on).

Since rebates are not paid until the validity period of the rebate agreement has ended, the system must keep track of all billing documents (invoices, credit and debit memos) that are relevant for rebate processing. The system automatically posts accruals so that accounting has an overview of the cumulated value of the rebate.

A rebate agreement is finally settled when you issue a credit memo to the customer for the accumulated rebate total.

You can set up rebates at any level just like pricing. The following rebate types are available in the standard system:

  • Rebate based on a material

  • Rebate based on a customer

  • Rebate based on a customer hierarchy

  • Rebate based on a group of materials


You can process rebate agreements when the following prerequisite conditions are met:

  • The sales organization in which the sales order is processed must be relevant for rebate processing. Your system administrator sets this indicator in Customizing for Sales.

  • The payer must be subject to volume-based rebates. In many cases, the payer is the same as the customer. So that the customer can receive a rebate, the Rebate field must be selected on the billing screen of the customer master record.

  • The billing type used (invoice, credit memo, and so on) must be relevant for rebate processing. Your system administrator sets this indicator when defining billing types in Customizing for Sales.

    Note Note

    If you want to create a rebate that is not based on the material, but rather only on the customer, for example, you must create specific material master data for what is-called a material for settlement.

    End of the note.


Relationship to Pricing

Rebates differ from other discounts in that they are based on the customer's sales volume within a specific time period and are paid retroactively. However, the system processes rebates in much the same way as other kinds of pricing elements. Rebate data is saved in condition records.You control how rebate processing is carried out using condition types, pricing procedures, and access sequences. This control data is defined in Customizing for Sales.

Marketing Activities

Using a BAdI implementation, you use the rebate agreement from SAP ERP for marketing activities in SAP CRM (Trade Promotion Management) more effectively.

This is particularly useful for customers with a large volume of data for campaigns, target groups, and product segments, who can avoid possible problems with the database by setting up a custom-fit logic for rebate determination.

You can implement the BAdI Enhancements for Rebate Processing in the Implementation Guide (IMG) under Start of the navigation path Sales and Distribution Next navigation step Billing Next navigation step Rebate Processing Next navigation step Business Add-Ins End of the navigation path .