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 Direct and Indirect Rebate Agreement


You use the rebate agreements to process and settle agreements with a business partner for rebates granted over a specific period of time in Extended Rebate Processing .

A rebate agreement can be concluded with a customer in a sales area (rebate recipient) or with a vendor in a sales organization (rebate granter). A rebate agreement can consist of several individual agreements (condition records) that refer to various criteria. A single agreement, for example, could refer to the combination customer and material or customer and product hierarchy .


There are two different types of rebate agreements:

  • Direct rebate agreements

  • Indirect rebate agreements

The direct rebate agreement is an agreement that is based on direct sales. Direct sales are sales that you make directly with a customer and save as billing documents in the system.

An indirect rebate agreement is an agreement that is based on indirect sales. Indirect sales are sales between two third parties that are saved merely as auxiliary billing documents in the system. These auxiliary billing documents are simply used as a technical aid. They are not passed on to customers.

Note Note

For example, sales that a beverage wholesaler conducts with an operator’s restaurant. The beverage producer supplies the beverage wholesaler.

End of the note.

Auxiliary billing documents (that contain only rebate conditions) are generated using Extended Rebate Processing .


In purchasing, a rebate agreement can be defined for:

  • A specific vendor or

  • A combination of vendor and material.

As soon as the customer exceeds a previously defined sales target, the system credits the customer with a previously defined percentage of sales.