In Purchasing, rebate arrangements are stipulations agreed with vendors governing refunds of part of the buying entity’s total spend over a certain period. Such refunds often vary according to the volume of business done with (i.e. volume of purchases made from) the vendor. The volume of business done with the vendor and the resulting rebate can only be determined retrospectively, at the end of the period (subsequent to the individual transactions of which this business volume is composed). The calculation of the rebate and the subsequent transfer of the relevant data to Financial Accounting is described as settlement accounting with respect to the rebate arrangement.

Settlement accounting can be carried out periodically during the overall validity period of the rebate arrangement and/or once-only, at the end of this period.

The Purchasing staff who entered into the relevant rebate arrangements with the vendors can be advised by workflow when the planned settlement dates are reached. A work item appears in their inboxes on each settlement date. From within the work item, the responsible member of staff can directly invoke the settlement accounting transaction with the rebate arrangement affected.

Prior to settlement, it may be necessary to compare and agree business volume data with the vendor. A work item is created for this process as well.

SAP Retail: Subsequent (End-of-Period Rebate) Settlement.