How to create differential rebate provision?

[Former Member]

Hi,

Is it possible to create a differential rebate provision?

That means that once the total sales to a certain customer with a rebate agreement exceed a certain level, the rebate is increased but at the same time the automatic provision is increased respectively

For exmaple:

From	To	Rebate	Provision
0 $	1,000,000 $	2 %	2%
1,000,001	2,000,000 $	3 %	3%
2,000,001	3,000,000 $	4 %	4%
3,000,001	and above...	5 %	5%

Thanks,

Ron

[Former Member]

Dear Ron,

Infact we had similar requirement from one of the customer, But as per SAP Standard Design, system can have only One Rate to be accumualated and Posted to a GL Account.  By this I mean, you can maintain scale rate, but rebate provision should be of One value. Say for example 5% considering your example. It should be always on the higher side. Same can be corrected while doing the final settlement.

SAP Standard does not support posting multiple Provisions.

Regards

Murali

[Former Member]

Thanks Murali for your prompt replay.

The problem with this solution is that taking the higher level does not reflect the actual current liability.

In my example above and with your solution of taking the 5% and under the assumtion of 3,500,000$ sales the real provision should have been:

Sales	Rebate %	Rebate $
1,000,000$	2%	20,000$
1,000,000$ (accumulated = 2,000,000$)	3%	30,000$
1,000,000$ (accumulated = 3,000,000$)	4%	40,000$
500,000$ (accumulated = 3,500,000$)	5%	25,000$
Total		115,000$
According to your suggestion (5% X 3,500,000$)		175,000$

[Former Member]

Dear Ron,

Thanks for your details explanation, As I have do not have Rebate Scenario configured curretnly. My understanding is that, when you do the settlement, do the settlement according to actual value. I assume this is posible. Try this scenario and see whether system allows you to do it or not.

Hope I am able to answer you. If not please revert me.

Regards

Murali

[Former Member]

Hi Murali,

The thing is that if in the settlement stage the provision does not reflect the actual rebate that needs to be issued, then it means that the company needs to calculate the rebate manually.

I would like to avoid this manual calculation by setting up the differential calculation. This way the provision reflects the real rebate.

Another problem is that during the year, as long as the company did not do the final settlement, the provision is not accurate, and this is a problem on the financial/accounting level.

It is strange to me that the SAP does not allow to create a more "dynamic" provision, because setting up a provision using only single percentage causes a real gap from the expected provision.

Regards,

Ron

[Former Member]

Dear Ron,

I understand your concern, You can do one thing. Raise an OSS with SAP and see if they have some solution for this. This would be the better way i feel.

Let me know if you get positive feedback from SAP.

Regards

Murali