Use

A rebate agreement represents a contract between two business partners, defining the terms and conditions of a discount that is paid after the purchase of a product. For example, you can define the rebate recipient, the rebate value, and the criteria on which the rebate is based. You can also define amounts to be accrued.

The discount which is valid for a specific time period, is either based on a customer’s sales volume, or on the amount of products purchased.

You create a rebate agreement that is valid over a period of two years. In the agreement, you stipulate that you will grant your customer a 1% discount for purchases made of product A during this time. You agree to pay the discount on a monthly basis.

Rebate agreements are business transactions in the CRM system. The data in a rebate agreement is automatically used for calculating rebate amounts to be paid and for posting accruals.

Rebate agreement processing is available in the CRM WebClient UI.

Features

You define the conditions of a rebate in the item details. You have to define conditions for each rebate that you want to offer.

You can define one or more condition records for each item in a rebate agreement. Condition records control how rebates are calculated and settled, including:

The object on which a rebate is based (for example, business partner, product, or business partner hierarchy)

The value of the rebate to be paid, and the value of accrual rates.

For more information about the parameters that you can enter in condition records, see Rebate Condition Record .

In the Rebate Activity Summary , you have an overview of the rebates accumulated to date by the rebate recipient. You can also see the open accruals.

This information is available per item in the rebate agreement and per due list item in the rebate agreement item.

When a rebate-relevant billing document is sent to accounting, an extract is created in the rebate application and the rebate due list is updated:

If rebate conditions are determined based on the extract in pricing, accruals are updated in the rebate due list. Once the extract is sent to accounting, accruals are also posted in accounting. The rebate due list update and posting of accruals in accounting can take place simultaneously or with a delay.

You can also post accruals yourself, for example, for a fixed-amount rebate.

If rebate conditions are determined based on the extract in pricing, items in the due list are created or updated. A due list item is called a rebate activity. In the rebate activity details of the rebate agreement, you can display the following information about individual rebate activities:

Activity summary with information on total values to date, such as the total available rebate balance and total open and resolved accruals.

Display of rebate activity by cumulation period

Display of information on rebate conditions, adjustment details, settlement details and invoices from sales.

You can trigger settlement of rebate agreement items. During settlement, a credit is posted in accounting and accruals are reversed. You have the following options:

Final Settlement , which closes the rebate agreement item and resolves all remaining accruals.

Partial Settlement , which settles individual rebates defined within an item.

You use partial settlement for interim payments to the rebate recipient during the validity period of the rebate agreement. A partial settlement does not close the rebate agreement. Existing accruals are resolved up to the payment amount and up to the actual accrual amount.

For mass processing of rebates use the rebate due list.

You can carry out several adjustments on item level. For example, you can manually post base adjustments and balance adjustments.

You can create a template agreement with all relevant data, including items and conditions.

The conditions of a template agreement are not pricing relevant and do not cumulate sales volume. The agreement does not trigger rebate processing. Template agreements are used for mass generation of agreements.

You can carry out mass generation of rebate agreements.

On the SAP Easy Access screen, choose Sales → Rebate Management → Mass Generate Rebate Agreements

You can carry out mass changes for rebate agreements.

For more information, see Mass Changes for Rebate Agreements .

If you are using service parts management, you can integrate additional functions into rebate processing. For more information, see SPM Functions in Rebate Processing .