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Purchasing Rebate base on Total Volume

Dear All,

I am facing an issue related to purchasing rebate. My client make a contract with 3 vendors who are producing carton box and there are 3 separated contracts "Vendor A, B and C" and each contracts stated as following:

1 Million qty of carton box = rebate rate 1%

2 Million qty of carton box= rebate rate 3%

5 Million qty of carton box= rebate rate 5%

Base on agreement of my client and these vendors, if my client purchase per month with total volume above, my client will get credit note; but monthly total volume is sum of these 3 vendor.

Example:

Jan'20 :

Vendor A = 500,000 units

Vendor B = 300,000 units

Vendor C = 200,000 units

Refer to purchased qty above, my client reach 1 Million qty of carton box and rebate 1%. On other hand, these vendor will issue credit note individually, so:

Vendor A = 500,000 units x 1%

Vendor B = 300,000 units x 1%

Vendor C = 200,000 units x 1%

++++++++++++

Feb'20 :

Vendor A = 1,000,000 units

Vendor B = 500,000 units

Vendor C = 500,000 units

Refer to purchased qty above, my client reach 2 Million qty of carton box and rebate 3%. On other hand, these vendor will issue credit note individually, so:

Vendor A = 1,000,000 units x 3%

Vendor B = 500,000 units x 3%

Vendor C = 500,000 units x 3%

i am not sure how to set up purchase rebate base on this scenario, kindly help.

With warm regards,

Ratana

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1 Answer

  • Posted on May 22 at 09:56 PM

    Dear Ratana,

    You are requested to please go through the blog of Rebate, if you are on S4 Hana business suite i.e.

    Vendor Rebate FICO Configuration

    If you are on ECC, then go through the mentioned below link

    Vendor Rebate Process and setting

    Note:

    As all SD and MM consultants know rebates processing in classical way of ECC in S/4 they are not available any more. The replacement for rebates from ECC has been done via Condition Contract Management. The CCM has some roots in agency business settlement that has been extended to really very powerful tool but on the other side heavy to configure.

    Please go through the blog as mentioned below:

    S/4 Condition Contract Management – Purchasing

    Best Regards

    Mohsin Abbasi

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