The functionality of agreement type

Proposed valid from/proposed valid to Specifies the default validity periods that the
system automatically proposes while creating the rebate agreement. The default
valid from date is very much important in regards to whether or not we offer a
retroactive rebate. If we leave this field blank, the rebate will be valid from the current
date. If we specify the value “first day of the year” the rebate agreement will be valid
from the first day of the year even though the agreement is created on the current
date which is called a retroactive rebate.
Payment method: Specifies the default method of paying the rebate amount to the
customer. For example, it can be a credit memo or check, etc.
Default status: Specifies the default status of the rebate agreement. Generally, it will
be “open”.
Condition type group: Specifies the corresponding condition type group of the rebate
agreement type.
Verification levels: Specifies whether the system displays all the billing documents in
the rebate agreement based on which the rebate is calculated, or it displays the
totals depending on the payer, etc.
Different validity period: If we check this field, the validity period of the rebate
condition record may differ from the validity period of the rebate agreement.
Payment procedure: Specifies whether the rebate shall be paid up to the accrued
value or there is no limit for manual payment.
Partial settlement: Here we need to specify the document type ‘R3’ for creating a
partial rebate settlement requests when entering the payment in the rebate
agreement.
Reverse accruals: If we check this field, in the rebate agreement the field “accruals
reversed” will be automatic with the rebate amount paid to the customer. It is always
a best practice to check this field.
Final settlement: Here we need to specify the document type ‘B1’ for creating the
document rebate credit memo request while making the final settlement to the
customer.
Text determination procedure: Specify the corresponding text determination
procedure for the rebate agreement with the corresponding text ID.
Save the agreement type.
Setting-4: Condition type of group. The condition type group specifies which rebate
condition types are to be used for the rebate agreement. For configuring this, go to;
Path: SPRO--->sales and distribution--->billing--->rebate processing--->rebate
agreements--->condition type group.

 Define the condition type of group.

 Go to “new entries” and create a group.
 Assign condition types and tables to condition types group.
 Go to “new entries” and assign the required rebate condition types along
with condition tables to the condition type group.
 Assign condition type groups to rebate agreement types.
 Select the required agreement type and assign the required condition type
group.