Rebate Processing in SAP:
How to Efficiently Set Up and Manage Your Rebate Programs
By Matthias Liebich, MLI Solutions, LLC
Even a casual stroll through the Sunday paper reminds us that we can no longer ignore the proliferation of rebates in our lives. Taking the “if we can’t beat ’em, join ’em” attitude,SD master Matthias Liebich decides it’s time to show SAPtips readers the inner workings of rebate functionality in SAP
. Matthias points out that even the most flexible and robust ERP systems have to be stretched and tweaked to support “the crazy deals that salespeople sometimeconcoct to incent their customers”. This 30-page white paper presents a sweeping review of what the SAP rebate function can and cannot do. Matthias introduces rebate planning, setup, and configuration in SAP. He then brings the focus to the detail level, using screen shots to illustratethe procedures for managing the rebates, primarily relating to accrual, paying, and tracking.
When I opened the Sunday paper a while ago, I was overwhelmed with all the President’s Dayoffers of “free” things. Of course, after reading the small print, I realized that it was only free “after rebates”. Every time I see these ads that promise me “free” DVDs or food, I get excited; but mywife never fails to remind me that there is no such thing as a free lunch. It is common for companies to pay rebates to their customers in return for fulfilling certainrequirements. The classic example is the car manufacturers. They give their car dealerships arebate at the end of the year, depending on how many vehicles they sold. This way, the dealersmake money, even if they sell you your dream Beamer at “invoice” price (all right, maybe not aBMW).How do SAP customers manage these rebates? This is the subject of this issue’s pricing relatedwhite paper. SAP provides a basic set of rebate functionality to manage the most common rebatescenarios. However, no standard system can handle the crazy deals that salespeople sometimeconcoct to incent their customers. This white paper will show you what SAP rebates are capableof (and what not). It will guide you through standard configuration, how to plan and set up rebatesin SAP, and most importantly, how to track and pay out rebate payments. Rebate functionalityfirst was available in rudimentary form back in R/3 version 2.1. With R/3 Release 3.0, thatfunctionality received a significant overhaul. Since most SAPtips readers are running on 4.6 (as inthis white paper) or 4.7 versions of R/3, you can be confident that the rebate tips provided in thisarticle will be applicable to your installation.
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