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Manual accruals/Partial Settlement

Hi,

I have following questions sinc eiam doing rebates for first time.

1) in the billing document, the rebates are calculated as per the the accrual rates in rebates condition records. My question if the invoice is for Rs 100 and accrual rebate amt in invoice is rs 2. will the customer pay Rs 98 against this invoice of full Rs 100.

2) what happens during manual accruals. why a credit memo request is generated during manual accruals. what happens to accruals as per condition records.

3) what happens during partial settlement. do the accruals already poested gets reduced to the extent of amount of partial settlement. do manaul accruals have any role to play during partial settlement

4) what happens during final settlement. do manual accruals have any role to play during final settlement i.e. do they get reversed and what happens to accurals posted as per rebate conditon records.

regards

sachin

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1 Answer

  • Sep 08, 2008 at 03:22 PM

    Hi,

    1) in the billing document, the rebates are calculated as per the the accrual rates in rebates condition records. My question if the invoice is for Rs 100 and accrual rebate amt in invoice is rs 2. will the customer pay Rs 98 against this invoice of full Rs 100.

    Customer will pay Rs 100 against the invoice. Rebate is a discount paid at the end, when the customer reaches certain sales values. This rebate is paid retroactively, Meaning, for example rebate rate is 2%, and the rebate agreement is made for Rs 10,000, once the customer's sales orders total reaches this value, then a credit memo is created for Rs 200 and paid to the customer.

    2) what happens during manual accruals. why a credit memo request is generated during manual accruals. what happens to accruals as per condition records.

    For both manual accrual or accruals generated based on the condition records will be settled using credit memo request only.

    3) what happens during partial settlement. do the accruals already poested gets reduced to the extent of amount of partial settlement. do manaul accruals have any role to play during partial settlement

    Yes during the partial settlement, the accruals generated are reduced.

    4) what happens during final settlement. do manual accruals have any role to play during final settlement i.e. do they get reversed and what happens to accurals posted as per rebate conditon records.

    During final settlement, both the manual accrual and condition rate accruals get reversed to zero.

    Regards

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