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Alternative to Rebates

Oct 31, 2016 at 07:42 PM

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Former Member

Hello All,

we have a unique request from the business. was wondering if there was a standard solution or we need customization for sure. pardon the long explanation and thanks in advance for reading it with patience.

Rather than negotiating rebate agreements with customers which would result in a bonus payment after the fact after achieving a defined goal they would like to implement the following contractual agreements with the customers:

Agreement with a customer for a specific product, direct rebate on the sales price (net price) which is lower than the list price (no after the fact bonus), target volume for the product for a defined period.

At the end of the period system wise review of volume achievement, than decision tree:

a) volume achieved -> individual net price remains for a next period

b) volume not achieved -> pricing falls back to list price

Example:

Agreement with customer A for item number B

3 month period (Jan 1st to March 30th)

Target volume 1,000 packs

List price of product: 10€

Customer individual agreement price: 9€

Customer buys product during the 3 month period for 9€ each.

Scenario A:

On Until March 30th the volume bought by the customer was 1,100 packs

  • Pricing remains with 9€ per pack for the next period (i.e. next 3 months)

Scenario B:

On Until March 30th the volume bought by the customer was 900 packs

  • Pricing is automatically put back to 10€ for the customer as of April 1st.

There should be flexibility for the period (can be 1 month, three month, one year….) as well as for the pricing (“fall back” price could be list price or any other higher customer individual price)

Is there Anything standard in SAP we can use or something to at least leverage off if customization is a must?

Thanks for your input.

Regards.

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2 Answers

Best Answer
Jignesh Mehta Nov 01, 2016 at 07:53 AM
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Hello Ramkrishna,

I cannot think of any Standard SAP setting that allows you to achieve the above.

Probably some complex ABAP developments should be able to trigger the workflow approvals and subsequently modify the Pricing condition records.

Thanks,

Jignesh Mehta

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Former Member Nov 01, 2016 at 04:39 PM
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Thanks Jignesh !!

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