Rebates in Trade Promotions

A rebate is a special discount granted to an account as a trade promotion incentive. You pay the rebate amount out to the account after the trade promotion has been executed rather than off-invoice. A rebate depends on the account's sales volume within a specified time period. Generally the account has to provide you with some proof of performance such as promotional pricing, displays used, product visibility in the store, and so on.

You normally define a rebate in a particular sales area with an account, which functions as the rebate recipient. A rebate usually consists of several individual rebate agreements in the form of condition records. Each rebate has a unique number and a globally unique identifier (GUID). Rebates and rebate conditions both refer to a trade promotion.

Integration

In SAP CRM, you can use two different forms of rebate:

SAP ERP rebates
For the SAP ERP rebate, you perform Customizing in SAP ERP and download the Customizing to SAP CRM. The trade promotion generates a rebate agreement with rebate condition records that are transferred to SAP ERP automatically when you save the trade promotion.
SAP Customer Relationship Management (SAP CRM) rebates
The SAP CRM rebate functions the same way as the SAP ERP rebate. You use these rebates if you are using a SAP CRM standalone scenario without any SAP ERP integration. In this scenario, you do all the Customizing in SAP CRM. The conditions and rebate agreements that are generated are not transferred to SAP ERP. You also create sales orders and complete billing in SAP CRM.

Note Note

For simplicity's sake, we use the term “rebates” to refer to both forms of rebate in Marketing. From a technical point of view, the SAP CRM rebates, generated in Marketing, are entries in the rebate due list, which is the central object in the SAP CRM rebate application for managing all the data that is relevant for rebate settlements. The SAP ERP rebates generated here are rebate agreements.

End of the note.

Rebates are a specific type of trade spend. For more information on trade spends in general, see Trade Spends and Dates.

Prerequisites

The type of rebate processing you use depends on the sales area and the campaign type. You can maintain these settings in Customizing for Customer Relationship Management under Trade Promotion Management Trade Promotions Condition Maintenance .
You have maintained trade spends for rebates in Customizing for Customer Relationship Management under Trade Promotion Management Trade Promotions Trade Spends Define Trade Spends for Values .
You have completed the settings depending on your scenario (integration with SAP ERP or SAP CRM standalone) in Customizing for Customer Relationship Management under Trade Promotion Management Trade Promotions Condition Maintenance :
- ERP Rebate Processing
- CRM Rebate Processing
You have completed the relevant settings in Customizing for Customer Relationship Management under Rebate Processing.

Features

Rebate Recipient

The standard rebate recipient is determined during the condition generation. The planning account is used in the determination:

Account
The planning account is selected.
Account hierarchy node
When only one account is assigned to the hierarchy node, this account is selected and the rebate recipient is determined as described above.

When more than one account is assigned a random selection is made and the rebate recipient is determined using account rules.
Target group

Note
Target groups should be used for SAP CRM standalone scenarios only, as target groups are transferred to SAP ERP but not fully supported in the SAP ERP sales order.

End of the note.

With the target group, the rebate recipient is determined using account rules. If the account has not been maintained, then the owner of the target group is selected. If the target group is empty, no rebate is generated since there is no rebate recipient. This can be avoided by determining a default rebate recipient.

Note
You can customize the standard determination for rebate recipients using the Business Add-In (BAdI) /BON/RECIP_DETERMINE (for the generation of SAP ERP rebates) and CRM_MKTPL_CRMR_IF (for the generation of SAP CRM rebates).

End of the note.

Rebate Status in Trade Spends

The rebate status is displayed together with the associated trade spend. The following rebate statuses are possible for trade spends:

Open
For Settlement
Settled

The assignment of the SAP ERP rebate status For Settlement depends on the minimum status you defined in Customizing.

Rebate Status in Trade Promotions

SAP ERP and SAP CRM Rebates
Action	Required Status
Delete trade promotion	Trade promotion date range must be in the future No rebates are generated If rebates are generated, they must have the status Open
Delete trade promotion
Delete SAP ERP rebates	Rebates have status Open, not status For Settlement or Settled Note You can delete rebates by deleting the associated trade spends End of the note.
Delete trade spends associated with SAP ERP rebates	Trade promotion date range must be in the future Rebates have status Open, not status For Settlement or Settled
Archive trade promotions	Rebates have status Settled

Note Note

When you lock a trade promotion, this has no effect on rebates and rebate conditions. Only the campaign determination conditions are affected. With long-term trade promotions, the rebates are deleted if permitted.

When you finish or reject a trade promotion, the status of the associated rebates is automatically set to For Settlement.

End of the note.

Split Criteria

Having split criteria for rebate agreements in trade promotions means that a new rebate agreement is created for each trade spend.

The trade spends are separated from each other because the payment time can differ for each trade spend. Payment is also often linked to a certain requirement that has to be checked, for example, reserving a certain shelf space for a product. The variable rebate agreements are normally settled separately for all accounts at the end of a trade promotion.

Hierarchy Nodes

When account hierarchy nodes are used, the system can expand the hierarchies. If you have defined:

An account hierarchy for the rebate in the variable key of the condition table, the system uses the account hierarchy node that is assigned to the trade promotion
A condition table containing an account ID or payer in the variable key for the rebate condition type, then the account hierarchy node is expanded into individual accounts

You can make the required settings in Customizing for Customer Relationship Management under Trade Promotion Management Trade Promotions Condition Maintenance Define Condition Generation and then select Condition Tables.

Target Groups

If you use target groups as a planning account, the planning level determines how many rebates are generated with the planning profile layout.

When planning with individual accounts, one rebate per account view is displayed on the planning area for Planning.
When planning with account hierarchies, there is one rebate (and thus one rebate recipient) for each hierarchy node.
When planning on product level (without an account field), the standard behavior is as follows:
1. The system generates a rebate and determines an account from the target group owner field.
2. If the target group is empty, no rebate is generated and thus there is no rebate recipient.
3. The rebate recipient is determined using the relevant BAdI (see note section above).

Note Note

To override the standard behavior and enable generation of multiple rebates for a target group, you can implement the BAdI CRM_KFP_BADI. For more information, see the documentation for Customizing for Customer Relationship Management under Marketing Marketing Planning and Campaign Management Key Figure Planning Business Add-Ins BAdI: System Enhancements for Key Figure Planning .

End of the note.

More Information

For more information on Customizing settings for rebates in the Trade Promotion Management business scenario, see Customizing for Rebate Processing and Maintenance of Rebate Processing in SAP Solution Manager.

Rebate Processing

Condition Generation in Trade Promotions

Volumes/Trade Spends Planning

Interaction of Rebate Agreements with SAP ERP

Free Products in Trade Promotions