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May 14, 2020 at 01:35 AM

Accrual on Rebate Management

405 Views Last edit May 15, 2020 at 12:05 AM 3 rev

Hi Experts,

I am trying to understand the financials logic behind the accruals taken when using the rebate management module.

My expectation would have been that the accruals create an amount "to be paid" on the balance sheet, but instead the standard configuration books the accrual to the PnL. So basically, it creates a in and a out in the same PnL GL which bottom line creates no impact at all. I couldn't find any configurations to change that behaviour.

My Invoice, I see the accrual, amounts are also available in reporting which is great

Here is the journal entry ... the accrual amount creates a in and a out in the same GL, no PL impact, not too sure to understand the point, if somebody can explain it would be great.

and here is the credit memo, the accrual creates a in and a out in the PnL GL. And now that it's time to recognize to real discount, the main Sales GL (400000) is being debited instead of the Sales Discounts GL.

My expectations would have been (let's forget the sales tax):

1. Invoice

AR DT 37,50 $

Sales Discount DT 4.88$

@ Sales CT 37,50$

Accrual on rebate CT 4,88$

2. Credit Memo

Accrual on Rebate DT 4,88$

@ AR CT 4,88$

Am I getting this all process wrong ? Have I missed a configuration point ?