Customer Rebate

[Former Member]

Hello GURU's,

I have to configure Rebate Based On Customer Sales. And I need Your help in Configuring this process. Here is the requirement:

1: Rebate is Based on Customer Sales. e.g. 2 Million in a 3 Months.

2: The agreement can start on any day e.g. 13.August.2009 to12th Nov.2009.

3: There are Hundreds of Material which a customer can Buy.

4: Rebate is agreeded & the accrual amount is fixed i.e. 3% and is not scale based.e.g. 3% Rebate if a sale of 2 Million in 3 months.

5: Settlements are done once when an agreement ends.i.e. Final Settlement.

6: Credit Note is issued to a customer.

If you have any questions kindly ask.I need the configuration steps for this process.

Regards,

Shahzad

[Former Member · Accepted solution]

Dear Guru's,

I just configured Customer Rebate procedure. I posted invoice to FI but its not possible as account determination error is giving. Account assignment analysis cannot be carried out for billing type F2. This happened after i edited the pricing procedure to incorporate rebate condition. The rebate condition is calculating accurately but when posting to FI the above mentioned error is coming. I have checked & maintained account determination and every thing is accurately maintained.

Please help,

Regards,

shahzad

[aramsum · Accepted solution]

Hi Shahzad,

Check If you have configured your pricing procedure with the account keys(ERB,ERU). Check the account determination procedure If the G/L Account and the secondary account has been assigned in "VKOA". Kindly please let me know if you need any more information on this.

Regards

Ram Pedarla

[Former Member · Accepted solution]

Hey,

Do i have to use the same pricing procedure for the rebate credit memo (B1, B2, B3, B4) as the one i am using in the sales order?

Regards,

Shahzad

[Former Member · Accepted solution]

Hi Shahzad

When you create Rebate for a Customer, then you need to refer to a "Settlement material".

So, create a Rebate material(settlement material) in MM01, by specifying certain data in the sales org1, sales org2 and accounting 1 view.

Rebate is settled by a "Rebate Credit memo" which is created with reference to the "Rebate Credit memo request" generated automatically by the system, when you go for settlement.

You have created Customer Rebate (003) ,which is calculated on percentage basis on total value of purchase by the customer in which there may be several material.

To create a "Rebate Credit memo Request", system needs a material.

Suppose, total purchase by the customer is Rs.1000/- and accrual should 5%, i.e, Rs.50/-.

This rebate amount of Rs.50/- will be issued against the "settlement material", which you can see in the Rebate Credit memo Request.

Settlement material (M1) -

---

> - Rs.50/-.

Again, from this "Rebate Credit memo Request", a "Rebate Credit memo" will be created for which there will be posting in accounting.

For,Revenue Account determination, "Account assignment category " of the Material is required as one of the factor so that system can determine the appropriate G/L account. Where from that will come in a Customer Rebate (percentage rebate).

That will come from this settlement material.

The material master of the settlement material is the source for important data required to create a Rebate Credit memo, for example -- Account determination.

So, create the Settlement material (Rebate material) and assign it to the Agreement.

Hope, this will be helpful.

Regards

[Former Member · Accepted solution]

Dear Guru,

Do i have to have the settlement material account assignement group set and determined in the account determination. currently i am not using it and all the invoices are accurately accrueing in the rebate agreement.

Regards,

Shahzad

[Former Member · Accepted solution]

Hi

When you will settle it by a Credit memo, it will be required. In the Rebate Credit memo request the Rebate amonut is issued against the settlement material.

So, do the settings.

Regards

[Former Member · Accepted solution]

We dont have Retro-active rebate. So you are saying i should not use B2 & B4? We just have Final Settlement B1 & B3. Also, we have accruels based on two conditions, 1 is 1% Based and the Other is Value Scale Base. How should i configure that?

regards,

Shahzad

[Former Member · Accepted solution]

Dear Guru,

The user wants to give rebate as a fixed 2% on total sales valume and also 1% based on Monthly targets. i.e. 2% of billed value fixed per month & 1% of rebate if he crosses the 1 Million sales mark / month.

Scenario 1: I will make a monthly rebate agreement. if i carry out final settlement at the end of the month, all the order's which were not billed while the rebate agreement was not settled, will be billed next month in the next months rebate agreement. users do not agree with this. e.g. 4 orders created in 1 month and only 3 were billed in the current month rebate agreement, while the last one was billed in the next month in another rebate agreement. Then that order should show in the next months rebate agreement which is not the case.

Senario 2: If i have a yearly rebate agreement which has monthly target based rebate condition e.g. 1% of 1 Million sale per month, is that possible?

Regards,

Shahzad

[Former Member]

These are the following configuration steps :-

1. Activate the Rebate in Customer Master > Sales Area Data > Billing Document > Activate Rebate.

2. Go to SPRO > IMG > SD > Billing > Rebate Processing > Activate Rebate Processing > Activate Rebate Processing for Sales Organization & Select Billing Documents for Rebate Processing.

3. Add Condition Type B001,B002 & B003 ,Req as 24 , Account key & Accruals as ERB & ERU Respectively.

4. Go to VBO1 > Agreement Type as 0002 if Material Rebate > Enter the Customer activated for Rebate in Rebate Recipient > Conditions > Enter the Sales Area ,Customer , Material & Amount .

5. Go to VKOA and maintain the Account keys ERB & ERU as per the assignment maintained by you.

Best Regards,

Ankur

[Former Member]

1. Activate the Rebate in Customer Master > Sales Area Data > Billing Document > Activate Rebate. (DONE)

2. Go to SPRO > IMG > SD > Billing > Rebate Processing > Activate Rebate Processing > Activate Rebate Processing for Sales Organization & Select Billing Documents for Rebate Processing. (DONE)

3. Add Condition Type B001,B002 & B003 ,Req as 24 , Account key & Accruals as ERB & ERU Respectively. (This activity has to be done to the pricing procedure? It will be condition type BO03 as rebate is based on customer. Do i have to make a condition record for it?)

4. Go to VBO1 > Agreement Type as 0002 if Material Rebate > Enter the Customer activated for Rebate in Rebate Recipient > Conditions > Enter the Sales Area ,Customer , Material & Amount . (Agreement will be 0003 as its a customer agreement and do i have to create a settlement material? what is a settlement material? and do i have to create it? which views do i have to create e.g. Sales, accounting, e.t.c.)

5. Go to VKOA and maintain the Account keys ERB & ERU as per the assignment maintained by you.

[aramsum]

Hi Shahzad,

You have to activate rebate processing at sales org, payer and billing document level. You have to insert condition type "B003" in your pricing procedure and assign the appropraite account key(ERB,ERU).

Now maintain the account assignment for the same. Now go to "VBO1" and create the agreement type and you can maintain the condition record for the same in the same screen by clincking on conditions screen on top left hand corner. Kindly please let me know If you need any more information on this.

Regards

Ram Pedarla

[Former Member]

3. Add Condition Type B001,B002 & B003 ,Req as 24 , Account key & 
Accruals as ERB & ERU Respectively. (This activity has to be done to the 
pricing procedure? It will be condition type BO03 as rebate is based on 
   customer. Do i have to make a condition record for it?

Yo have to make a Condtion record for it in VBO1 with Agreement Type as 0003.Select the Sales Area & enter the Customer to whom you want to give the Rebate.

Create the fresh Sales order & check.

Best Regards,

Ankur

Edited by: Lakshmipathi on Oct 15, 2009 11:23 AM

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