Rebate

[Former Member]

hi sap gurus

What is accruals in Rebate . Plz tell by taking an example.

[Former Member · Accepted solution]

HI REFER BELOW

http://sap.ittoolbox.com/groups/technical-functional/sap-log-sd/rebate-accrual-622844

Rebate accruals allow your accounting department to keep track of how much your company owes customers with whom you have rebate agreements.

You can enter

Example

accrual rates based on sales volume: accrual rate USD 2.00 for every 10 pieces the customer buys from you

accruals not based on sales volume: lump sum payment of USD 5000 for front of store display

If you are processing rebate agreements that have a relatively short life-span (for example, one month), it may not be necessary to use accruals at all during rebate processing.

You can enter an accrual rate manually in each condition record. The accrual rate should reflect, as accurately as possible, the rate at which the rebate will be calculated at final settlement.

Every time you process a rebate-relevant billing document (an invoice, a credit or debit memo), the system automatically posts an accrual to financial accounting (FI). Within FI, the rebate accrual is posted to two accounts: a sales deduction account and an accrual account. The accrual account is cleared when the rebate agreement is settled with a credit memo.

[Former Member]

Hi Rajesh,

Give your mail id, will send a document on accurals and rebates.

Regards

Ali

[Former Member]

accruals

Accumulated amount that will paid to customer in specific period

EXMP-->if customer purchages 1000 units in one month he will get 10% for the 100 units

1st weak he will purchage 250 units and 2nd weak 350 units and then remaning units will puchged in last weak then he will recive 10% rebate

[Former Member]

Hi Rajesh,

In rebate processing, Accrual GL is maintained seperatly. Since rebate is to be paid after certain time duration or paid as per the customer sales volume in that specific period, these entries have to be maintained seperatly

Then during the time of payment to the customer accont, or customer payment, deductions for rebate accruals are done from the accrual GL. Accrual GL entries are maintained for short time...since rebate payment is done from the accual account.

Hope u find the answer.

Regards,

Praveen.

[Former Member]

Hello Rajesh,

Rebates are different from other discounts in that they are based on the sales volume generated by the customer within a specified period and are paid retrospectively. The rebate details are defined in a rebate agreement.

Accruals are nothing but the discount amount that is accumulated perodically. accruals are maintained in seperate GL account and are settled by the end of the agreed period.

A settlement run creates the required credit memo request automatically. When the rebate relevant billing documents are processed, <b>accruals</b> can be determined and posted automatically. The rebate credit memo then reverses these accruals, if desired.

The rebate accrual amount is calculated using the rebate basis. The system posts accruals to financial accounting as soon as the rebate-relevant billing document is released to accounting. At the same time, the system updates the rebate basis and the accrual amount in the rebate agreement sales volume screen.

The system uses the accumulated amounts in the rebate agreement to create a rebate settlement.

<b>Reward points if helpful</b>

Regards

Sai

[Former Member]

To start with Rebates are discounts given to customers, but the difference is that rebates are not paid upfront like discounts for each sales oredrs. The rebates (discounts applicable for sales transactions for particular customer) are caluculated as per the agreement and accumulated for year or so, and settled at the end of the year as final settlement or partial settlement. The accumulated discounts over the periods in Rebates are called accruals.

Someone, please validate if this is ok.

[Former Member]

Hi Rajesh,

Rebate accruals allow your accounting department to keep track of how much your company owes customers with whom you have rebate agreements.

You can enter

Example

accrual rates based on sales volume

accrual rate USD 2.00 for every 10 pieces the customer buys from you

accruals not based on sales volume

lump sum payment of USD 5000 for front of store display

If you are processing rebate agreements that have a relatively short life-span (for example, one month), it may not be necessary to use accruals at all during rebate processing.

Accumulated amount to hit for particular g/l a/c ERU a/c key assinged in t-code

VKOA

Reward points Pls

Regards,

Govind.

[Former Member]

hi rajesh

accruals exactly means collection or accumulations.

for example in rebates all the rebate amount will be accumulated in this accruals

at the end of the rebate validity period ur total rebate settlement amount will be retreived by this accrual field.

reward points if helpful

regards

madhu

[Former Member]

Hi Rajesh,

Accruals is a type of account which you will define for customer for which want to set rebate.

e.g. Suppose you want to give rebate on value basis Let say 10$ on a purchase of 1000$. Now whenever your cust will buy worth 1000$, 10$ will go and sits in his accruals account. In this way you can find out how much he has accrue in the end of the yr.

Hope this clears your doubt.

Rewards pts if this adds info.

[Former Member]

Hi

Rebate Process

Rebate is special discount paid retroactively usually for a period of 1 year based on sales volume

Configuration settings are as under

A. SPRO->Sales & Distribution->Billing->Rebate Processing->Rebate Agreements->

Define Agreement Types Tcode : VB(2

Here you define Agreement Type , main fields are Manual Accruals Order Type, this is sales document type which will be used for Rebates, this is sales document type should have order related billing assigned to it,

If you want Manual Payments you can configure it, it will create Credit Memo Request, tick reverse accruals

Also Final Settelement Sales document type and config is here.

Once you do this or you can select any standard Agreement type

0001 Group Rebate

0002 Material Rebate

0003 Customer Rebate

0004 Hierarchy Rebate

0005 Indep. of Sales Vol.

Special Mention here is Condition Type Groups

define condition type groups (Tcode VB(3 )

then Assign Condition Types/Tables To Condition Type Groups (Tcode VB(4 ),

here condtion type and table is assigned to Condition Type Groups

Assign condition type groups to rebate agreement types (Tcode VB(5)

B Condition Technique For Rebate Processing

In Standard Pricing Procedure V/08, e.g. RVAA01 please note the condition type for Rebates,

BO01 Mat/Group Rebate

BO02 Material Rebate

BO03 Customer Rebate

BO04 Hierarchy Rebate

BO05 Hierarchy rebate/mat

Also note Account Keys ERB & ERU for Account key and Accrual Key

Also Note SubTotal Filed 7 - Rebate basis KONP-BONBA, this will be assigned to Total, generally this is net value for item

Also note Requirement type 24 Only in billing doc. is assigned all above condtion type so it appears in billing only

you can refer to condtion type in V/07 for condtion type BO01 to BO05 , special mention is of two fields

1.Rebate Procedure

Leave the field blank for condition types such as material rebates where the rebate payment is based on sales volume. Accruals are then posted automatically every time you process a billing document which is relevant for the rebate agreement. The accruals amount posted is determined by the accruals rate defined in the condition record.

Set the indicator 'A' for condition types such as lump sum payments where the rebate payment is based on promotional performance, for example, rather than sales volume. Accruals are then posted manually. You decide when accruals are to be posted and for which amount.

2. Rebate: Accruals correction procedure

Controls whether an accrual is reduced, or corrected, by the amount of the partial payment received.

Procedure

If you want the system to automatically correct accruals, leave this field blank. If you do not want to correct accruals, enter 'A'. Enter 'B' if you have entered an accrual manually and do not want the system to change it.

C. Account Determination For Rebates - It is as per standard account determination , please refer VKOA for ERB and ERU

D. Activate Rebate Processing

This is at Three levels billing document, sales org and payer , all three should be

rebate relevant.

1. Select billing documents for rebate processing (TCode : OVB0) , you should

not select Proforma Invoice for Rebate Processing...

2. Activate rebate processing for sales organizations (TCode : OVB1)

3. Payer in XD01/2, please tick check box Rebate in sales area data-billing tab

E Also note in Material Master MM01/2/3 Sales Org2 field Volume rebate group This is Group definition that can be used for rebate settlement. This field can be used in condtition records

Now the Configuration is done, We can maintatin necessary data for rebate agreement.

Go to SAP Menu, Logistics->Sales & Distribution->Master Data-> Agreements->Rebate Agreement-> Create (Tcode VBO1)

Select the agreement type and enter, you can give rebate receipient -you can use SP, SH or PY, but ensure Rebate check box should be activated

Now you can maintain Conditions by clicking the condition TAB,

you can maintain the condtions as you are maintaining in VK11,

If you are using Volume Rebate group(MM02) or other Customer/Material group for Rebate Configuration then you click on Material and click on details (Magnifying glass), you can give Matl f. settl enter material which will be used for account assignment and sales details will be taken from this material

Then create the sales order for the SP

Then go to VB02 and click on Sales Volume (Business Volume) and click on execute to create Credit Memo Request.Subsequently Credit Memo can be created with reference to this Credit Memo Request.

Reward if it helps

regards

Prasanna R

[Former Member]

Hi

Accruals is nothing but accumulation of amount which is to be paid to the customer.This amount will be posted to seperate G/L account. We need to assign ERU Account key in Accruals field in Pricing Proceedure.

Rebate accruals allow your accounting department to keep track of how much your company owes customers with whom you have rebate agreements.

You can enter

Example

accrual rates based on sales volume, accrual rate USD 2.00 for every 10 pieces the customer buys from you

accruals not based on sales volume, lump sum payment of USD 5000 for front of store display

If you are processing rebate agreements that have a relatively short life-span (for example, one month), it may not be necessary to use accruals at all during rebate processing.

Regards

MBS