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 Rebate Agreements


A rebate agreement usually consists of a number of individual agreements in the form of condition records . A rebate agreement and the condition records it contains are uniquely identified by a rebate agreement number .

The rebate agreement includes general information and terms that apply to all the condition records it contains. For example, the method of payment and the rebate recipient you specify for a rebate agreement will apply to all the condition records you create within the agreement.


You can define the following data in a rebate agreement. This general data applies to all condition records that you create within the rebate agreement:

  • Validity period

  • Status (for example, whether the agreement is released for settlement)

  • Rebate recipient (the party who receives the credit memo)

  • Currency (default from the sales organization)

  • Method of payment (check, bank transfer, and so on)

Note Note

The credit memo passes this information on to Financial Accounting.

End of the note.

Data Defined in a Condition Record

You can define the following data for each condition record in a rebate agreement:

  • Basis for the rebate (customer, customer/material, rebate group, and so on)

  • Validity period (the validity period for each condition record must be the same as or lie within the validity period of the rebate agreement)

  • Condition rate

  • Material for settlement

  • Accrual rate

  • Other control data, such as the pricing scale type

Note Note

Some information in a condition record is automatically proposed by the system from corresponding condition types (BO01, BO02, and so on). In Customizing for Sales, your system administrator can specify, for example, that condition records for a certain condition type can only be based on percentage rebates.

End of the note.

Material for Settlement

You may have to create rebates that do not depend on a material, but instead, for example, on:

  • a customer

  • a customer hierarchy

  • a group of materials

You will then need to refer to a material for settlement . The system uses this material when you pay out the rebate.

In this case you need to create a special material master record for this material for settlement.

It does not matter which material type and material application type you use.

Note Note

If you use the material type as a selection criteria for displaying lists, the material for settlement will appear in the list.

If you want to avoid this, you can create a special material type for the material type for the settlement material in SD Customizing.

End of the note.

You have to maintain the data in the material master record from the sales and accounting views.

Note Note

It is advisable that you use a meaningful number and/or material text when you create the material for settlement, so that it will be easier to keep track of the rebates you pay out.

End of the note.

When you create the condition record within the rebate agreement, the system automatically asks you to enter the number of the material for settlement.

When you create a credit memo to settle the agreement, the material for settlement provides important material master data (such as account assignment and tax determination).

Rebate based on a customer

You can base a rebate on a customer.

Note Note

Certain customers get a 1% rebate on all materials they buy from you.

End of the note.

Use agreement type 0003 .

When you create a condition record, you must enter a settlement material.

Rebate Based on a Material

You can base a rebate on a material that the customer buys from you.

Use the following agreement types:

Agreement type

Basis of rebate



Percentage rate

1% of the order value


Quantity dependent

US$ 10.00 per piece

Rebate Based on a Customer Hierarchy

You can base a rebate on a customer hierarchy.

Example Example

Certain customers get a 1% rebate on all materials they or their subsidiaries buy from you. The subsidiaries must be linked to the rebate recipient within a customer hierarchy.

End of the example.

Use agreement type 0004 .

When you create a condition record, you must enter a settlement material.


Rebate Based on a Group of Materials

A rebate group consists of materials to which you want to apply the same rebate.

Your system administrator can define rebate groups in Customizing for Sales according to the needs of your own organization.

You can assign a material to a rebate group in the material master record:

  • View: Sales 2

  • Field: Rebate group

When you create a condition record, you must enter a settlement material.