SD1013 – SD Rebate Agreements v 1.

0
Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Rebates…?

• A rebate is a special discount which is paid retroactively to a

customer.

• This discount is based on the customer's sales volume over a specified

time period.

• You define the details of the rebate in a rebate agreement. In the

agreement you specify i) who receives the rebate payment; ii) on what
criteria the rebate is based (customer, customer and material, etc); iii)
how long the rebate agreement is valid
Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Purpose

• Immense competition lead business to devise

various ways of incentive offers to their
customers

• At times it is necessary for business to reward

their customers based on their performance
( quantity or value) for a specific period

• Hence an agreement with details like, who

receives, how much to receive, criteria to
receive, when to receive are made & executed
Use

• An agreement between the business and a

customer which becomes active only when the
customer purchases the required sales volume.

• Used primarily as incentives or supplements to

increase/sustain product sales.

• Aids in attracting new customers or in keeping the

existing customers happy.
Challenges

• Correct tracking of the validity period of the

agreement

• Settling the credit amounts and reflecting the

same in accounting

• Incorporating past sales figures into the

settlement if they fall in the validity period
Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Rebate Agreements in SAP
• A Rebate is an agreement between the business and a customer.

• This agreement takes the form of a discount based on the sales

volume for the customer over a specific period of time.

• The rebate is only relevant if the customer purchases the

required sales volume in that specified period.

• However SAP allows other options too for setting the agreement
conditions.
Rebate Agreements in SAP
(Continued)

• The rebate agreement has separate condition records for

each product the customer buys.

• These condition records specify the rebate amount or

percentage due to the customer for each product.

• One can also specify a pricing scale so that the customer

can earn a better rebate by ordering more products.
Rebate Agreement Types

• Every Rebate is associated with a type called the Rebate

Agreement Type.

• The Rebate agreement type determines which data the

system is to automatically propose for the rebate
agreement.

• The condition type from the pricing procedure, is to be

attached to a condition type group, which will in turn be
attached to a agreement type.
Rebate Agreement Types
(Continued)

• You may define rebates on as many levels as you require, just as

for any other pricing condition.

• The standard system provides the following rebate agreement

types:
1. Material rebate
2. Customer rebate
3. Customer hierarchy rebate
4. Material group rebate
5. Independent of sales volume
Settlement Material
•You may have a rebate that does not refer to a particular
material, but rather to a group of materials or to a customer. In
this case, you must refer to a settlement material in order to
provide information at the material level

•Maintain the rebate material in the material master in the Sales

and Accounting views

•When creating a credit memo, the settlement material is the

source for important material master data, for example, account
determination
Relationship to Pricing
•Rebates differ from other kinds of discounts in that they are
based on sales volume over time and are paid retroactively.

•However, the system processes rebates in much the same way

as other kinds of pricing elements.

•Rebate data is saved in condition records.

•Controlling for rebate processing is carried out via condition

types, pricing procedures and access sequences.

•This control data is defined in Customizing for Sales and

Distribution.
Prerequisites for Rebate
Processing
• In order for rebates to function, rebate processing must be
activated for:
1. The sales organization.
2. The payer master
3. The billing document type

• For performance reasons, you should deactivate rebate

processing if it is not necessary.
Creation of Rebate Agreements
• The rebate agreement is created with reference to a rebate agreement
type. The features of each rebate agreement type are set in Customizing.

• Condition records are linked to the rebate agreement specifying the

rebate rate and the accrual rate.

• With the rebate agreement, you can specify:

1. The condition types used with this rebate agreement type
2. A validity period proposal
3. Which status is required before an agreement can be processed for
payment
4. Which rebate agreement types are defined in Customizing for Sales
and Distribution.
Rebate Processing
Organization of Information Structures
• Rebate processing begins by creating a rebate-relevant
billing document.

• The valid rebates are determined by the pricing procedure

using the rebate basis subtotal.

• Each rebate condition type has an assigned access

sequence.

• The system uses the access sequence to search for the

valid rebate condition records. If valid condition records
are found, the accrual rate is read.

• Requirement 24 in the pricing procedure enforces that the

rebate conditions are used only in billing documents.
Rebate Processing
Organization of Information Structures
(Continued)

• Requirement 25 in the pricing procedure enforces that the

rebate conditions are used only in rebate-relevant billing
documents.

• The rebate accrual amount is calculated using the rebate

basis.

• The system posts an accrual to financial accounting as soon

as the rebate-relevant billing document is released to
accounting.

• At the same time, the system updates the rebate basis and
the accrual amount in the rebate agreement sales volume
screen.
Creating Rebate Settlements
• The system uses the accumulated amounts in the
rebate agreement to create a rebate settlement.

• The system generates a rebate credit memo request

for the
rebate payment amount specified.

• There are 3 statuses available for rebate agreements

1. Status A refers to an open rebate agreement.
2. Status B means the rebate is released for
settlement.
3. Status C means you have actually executed the
settlement. The System creates a credit memo
request for the accrual amount.
Creating Rebate Settlements
(Continued)

• You can display the sales volume and drill-down in the

rebate agreement.

• You can carry out a final settlement for the rebate

agreement either:
a. Manually
b. Automatically
c. In the background (batch programs: RV15C001 and
RV15C002)

• Accruals are reversed as soon as the rebate agreement

is settled by credit memo.
Partial Rebate Settlement
•Retroactive rebate agreements allow you to take into account
billing documents created before the rebate agreement is
created.

•The rebate basis for the billing documents created previously

is accumulated and recorded in the rebate agreement

•The accrual amount is not automatically updated for

previously created billing documents. This amount must be
entered manually

•Rebate-relevant billing documents created after the rebate

agreement is created update both the rebate basis and accrual
fields automatically
Creating Rebate Settlements

• Partial rebate settlements can be limited for each rebate

agreement type as follows:
1. up to the accumulated accrual amount
2. up to the calculated payment amount for the current
date
3. unlimited

• Accruals are canceled automatically when a credit memo

is created, provided that the rebate agreement type is set
accordingly in Customizing
Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Activating Rebate Processing in
Billing Type & Sales Org.
Display IMG 
Sales & Distribution
 Billing  Rebate
Processing 
Activate Rebate
Processing

1. Go to Sales & Distribution

2. Select “Activate
Rebate Processing”

3. Double click on one

of the two options
Activating Rebate Processing in
Billing Type & Sales Org

Use the checkbox to activate/deactivate rebate processing.

Activating Rebate Processing in
Payer Master Record
Use Transaction XD02 to check/change Rebate Activation in payer master.
Check in Sales Area Data – Billing Documents Tab
Rebate Agreement Types
Identifies the
type of rebate
agreement
(for example,
whether the
rebate is
based on a 1. Go to Sales & Distribution
customer or
on a material). 2. Select “Define Rebate
Display IMG  Agreement types”
Sales & Distribution
 Billing  Rebate
Processing 
Rebate Agreements

3. Double click on “Define

Rebate Agreement types”
Rebate Agreement Types
(Continued)

Click on this button to

create new rebate
agreement types
Assigning Condition Type to a
Group
Display IMG 
Sales & Distribution 
Billing  Rebate
1. Go to Sales & Distribution Processing  Rebate
Agreements  Condition
Type Groups  “Assign
Condition types/tables to
Condition Type Groups”

2. Click on “Assign Condition

types/tables to Condition Type Groups”
Assigning Condition Type to a
Group (Continued)

In this IMG activity,

you assign
condition types and
condition tables for
rebate processing
and condition type
groups.
Specifies a grouping of
condition types and condition
tables for use during rebate
processing.
Assigning Condition Type Group
to Agreement Type
Display IMG 
Sales & Distribution 
Billing  Rebate
Processing  Rebate
Agreements  Condition
1. Go to Sales & Distribution
Type Groups  “Assign
Condition Type Groups to
Rebate Agreement Types”

2. Click on “Assign Condition Type

Groups to Rebate Agreement Types”
Assigning Condition Type Group
to Agreement Type (Continued)
Creating a Rebate Agreement
Use Transaction VBO1 to create a Rebate Agreement. On executing it, it
would ask for a Agreement Type. Enter the Agreement type and press enter.

Place the cursor in the box and

press F4 to the possible entries for
the rebate agreement type.
Creating a Rebate Agreement
(Continued)

1. Select 0003 (Customer

Rebate) and press enter

2. Window pops up for

entering the sales area
Creating a Rebate Agreement
(Continued)

3. Click on Conditions button

1. Enter Rebate Recipient

2. Set status to “A”

Creating a Rebate Agreement
(Continued)

1. Enter Customer 2. Enter Amount in % 3. Enter Accrual amount

Creating a Rebate Agreement
(Continued)

Click on Goto and select

“Material for Settlement”
Creating a Rebate Agreement
(Continued)

2. Click on Save

1. Enter Material
Creating a Rebate Agreement
(Continued)

Agreement is saved
Sales Order Creation
Use Transaction VA01 to create a sales order.

1. Select order type

2. Enter Sales Area

Sales Order Creation (Continued)
3. Click on Save. The sales
order number is generated.

1. Enter Sold-to, Ship-

to and PO Number

2. Enter Material
and Quantity
Delivery Creation

Use
Transaction
VL01n to
create a
delivery,
create
transfer
order if
necessary
or manually
pick the
items and
post goods
issue.
Billing Document Creation

Use
Transaction
VF01 to
create a
billing
document
Display Rebate Agreement

Select Sales Volume

Display Rebate Agreement

Click on Sales Volume and the

Verification Level. The details of the
amount of discount given to the
customer for a material is seen
Settling the Agreement
• Use VBO2 and type in the agreement Number. Change the Agreement
Status to B and click on Final Settlements->Automatic. On doing so, a
Credit Memo Request gets created.

• Status is set to C. Save it.

• A credit Memo Request Number is generated.

• Go to VA02 and type in the Credit Memo Request number generated.

Remove the Billing Block and Save it.

• Use VA02 to go to Sales Document and Click on Billing. On Saving it,

the Credit Memo Request is now Billed

• Go to VBO3 and see the Agreement Status. It would have been set to D,
which means that final settlement of agreement has been carried out.
Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Exercise

•Create rebate agreement ensuring that billing documents created

before the agreement but falling in the validity period are accounted for

•Create a sales document, deliver it and create the billing document

•Check for sales volume and verification level in the agreement

•Create settlements (Partial and Full)

Rebate Agreements
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
Transaction Codes

VB(2 Change View "Rebate Agreement Types": Overview

VB(5 Assign Condition Type Groups to Rebate Agreement Types
OVB0 Activate rebate processing for billing document types
OVB1 Activate rebate processing for sales organizations
XD02 Change/check rebate activation for payer master
VBO1/O2/O3 Create/Change/Display Rebate Agreement
VA01/02/03 Create/Change/Display Sales Order: Initial Screen
VL01n/02n/03n Create/Change/Display Outbound Delivery
VF01/02/03 Create/Change/Display Billing Document