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In Pricing : there are 2 diffrerents topics a Rebate Agreements & Discount

Dear members,

In Pricing : there are 2 diffrerents topics a Rebate Agreements & Discounts.

Can anyone let me know the difference.

Thank you

Edited by: madhu tatikonda on Oct 8, 2008 10:33 PM

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    author's profile photo Former Member
    Former Member
    Posted on Oct 08, 2008 at 10:13 PM

    Rebate is something that is done post sales and actively by customer.

    E.G. - by mailing/calling the vendor and submitting necessary documents (usually proof of purchase)

    Once approve the customer gets the credit.

    only exception to this is instant rebate which is a Discount.

    Discount - on time of sale, so you see the price deduction on the invoice.

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  • author's profile photo Former Member
    Former Member
    Posted on Oct 09, 2008 at 12:38 AM

    Assume that we want to give a customer a 3% discount on everything he or she buys. In addition, we will give away another 1% discount if the customer reaches a certain amount of gross sales for the year, for a specific group of products. The 3% is a discount which will be given on every invoice and the net value of the document is reduced to that extent. The 1% is a rebate which will be be given at the end of the year only if the target sales are achieved for th year. This 1% condition will be a statistical condition in the invoice and the net value of the document will not be reduced.

    After the rebates are set up, the rebate conditions will apply on applicable invoices as accruals instead of off-invoice discounts. The rebate agreement tracks the applied amounts, which can be reviewed at anytime in the rebate agreement. Once we decide to pay out any rebate amount to the customer, we will create a rebate settlement, which is represented by a credit memo request. This reverses accrued amounts and pays the actual monies to the customer either in form of a check or a credit memo.

    Regards,

    GSL.

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