Rebate Processing 

  

Rebates:   Rebate agreement is a special agreement granted to the customer on a specific volume of sales over a specific period of time. 

Configuration Path:

IMG>SD>Billing>Rebate Processing>Rebate Agreements>Define Agreement Types> 

Step 1 : Define Agreement Type

tep 1 : Define Agreement Type  Select"Define Agreement type " from choose activity,double click on it

Select an Agreement click on copy button and rename it

here I selected standard and renamed “0002-Material Rebate” to “Z002- Material Rebate-AA11” 

 

Step 2:   Condition Type Groups

   2.1:   Click on Define condition Type groups Click on New EntriesEnter your Copied Condition Type group which you created and Maintain “Blank” for Category of the condition type group 

    Step 2.2:   Assign Condition Types /tables to Condition Type groups

Click on New EntriesAssign Condition Type “Bo02” and Condition Table “1”to your Condition Type Group”Z002”

Step 2.3: Assign Condition Type groups to rebate agreement types

Click on it, Assign Condition Type group to Agreement Type

Step 3 :     Condition Technique for Rebate Processing

Click on it  Same as like Pricing Procedure configurationStep 3.1: Select Maintain condition table for RebatesSelect Maintain Condition Tables for Rebate and Click on ChooseBased on requirement we can create new condition tableSave and exit (if anything created)3.2: Maintain Access SequenceSelect Maintain Access SequenceClick on Choose, Go to New Entries and Maintain Access SequenceMaintain “1” Relevant for RebatesStep 3.3: Define Condition Types:Choose Define condition typesSelect it and click on ChooseRebate condition types (BO01, BO02, BO03, BO04, BO05, BO06)are available in Standard SAPAssign Access sequence to condition Type (if copied)Step 3.4: Maintain Pricing Procedure:Select Maintain Pricing Procedure and click on ChooseChoose Standard or copied Pricing Procedure by useClick on Position Button left side Dialog StructureMake sure that Rebate condition types must available in (copied) pricing procedureWith Requirement-24 (only in Billing Document)

Account Key - ERBAccruals - ERU 

Step 4: Account Determination for Rebates(If your are good at Account determination Procedure configuration no need to fallow this)The same process like Account Determination Procedure Step 4.1: Define A/C keys(Standard keys available in SAP)ERB -Rebate Sales deductionERU –Rebate accrualsStep 4.2: Assign Account Keys to our Pricing ProcedureIn standard pricing procedure it’s availableSteps 901 to 905

Step 4.3: Maintain Access Sequence(standard already created like Accounting Determination Procedure)Step 4.4: Define Account Determination TypesAssign access sequence to Condition typeStep 4.5: Assign G/L Account

  Choose table 1-customer group/Material Group/Account KeyClick on Assign button and Maintain G/L Account Provision Account

Step 5: Activate Rebate ProcessingIMG>SD>Billing>Rebate Processing>Activate Rebate ProcessingClick on “Activate Rebate Processing”

Select “Billing Documents for Rebate Processing” in Choose Activity.

Step 5.1: Select Billing Document for Rebate ProcessingT-Code: OVB0

(Or) T-code: VOFA

Enter billing Document Type and put check mark for Relevant for Rebates Go back, Select “Activate Rebate Processing for Sales Organizations”

Step5.2: Activate Rebate processing for sales organizationClick on Choose

(Or) Go to Enterprise structure

T-code: OVX5Select your sales organizationPut check mark for Rebate process Active

 

Step 5.3: The payer must be relevant for rebate processing.Go to XD01 or XD02 Payer customer master recordGo to sales are data tab then choose Billing tab put check mark for “Rebates” 

Step 6: Create Rebate AgreementT-code: VBo1 or SAP Easy Access PathSAP Menu>Logistics>Sales and Distribution>Master Data>Agreements>Rebate Agreement(VBO1-Create/VBO2-Change/VBO3-Display)

Choose created one (Ex: Z002)

Specify the rebate recipient [Customer master payer number]Specify the validity period of the agreementSpecify the agreement status: Blank [] = OpenSpecify the verification level [F] = Display totals by Payer/Material 

Then click on Conditions on topMaintain (Accruals amount) condition record for material rebate how much rebate we want to give it to the customer

 If we click on scales button

Here I maintained for each product 1 rupeego back

save it.With this configuration part is completedStep7: create sales orderT-code: VA01Specify Organizational detailsPress F8(document Complete)Check item conditionsSave itStep 8: Create DeliveryT-code: VL01nStep 9: create Billing document

Check ITEM conditions BO02 will display in conditions tab because we maintained requirement ‘24’ in our pricing procedure

save itNow Rebate Settlement to customerStep 10: Go to VBo2 rebated agreementEnter rebate agreement which we createdEx:  34

Check agreement status to ‘B’  

On the menu bar choose “Rebate Payment”

Here Customer is eligible for 50 Rs rebate accruals amountIf we observe Verification LevelsWill get details of payer customer master total rebate accruals amount 

We can settle the rebate amount by manual or automatic

Manually we can select the customer eligible amount

Then we can save itIt will create automatically credit memo requestHere I have chosen 5Rs/- and save it

We will get the message like this bottom of the screen.

Or if we want to give full settlement to the customer click on

It will create automatically Rebate Request for Manual Accruals for entire eligible pending amount.It will happened in the back groundIf we want to check that go to this path or Click T-code: VOV8Select any one of the above document typeB1, B2, B3 OR B4 click on details icon

Coming back to Rebate credit memo requestBack ground automatically created we can check these details by using T-code: VA03Now create Billing Document by using sales order numberCheck the conditionsSave itBilling document will be generatedRebate accrual amount 5Rs

Check Accounting Document

General ledger view

With this Rebate agreement process is completed.

Rebates Processs in SAP is divided into three components1) Configuring Rebates2) Setting Up Rebates3) Managing rebate agreeeements and payments Pre-requsiistes- Check the following:1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.2.The Billing type must be marked as relevant for rebates.3.The Sales Organisation must be marked as relevant for rebates. Condition Technique :Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention.So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16.. 

Use create access sequence (AS). Enter 1 in field category for rebate specific. AS after going thru the right path of maintaining access sequence for rebates. The big difference between the rebate and the pricing access sequence is that there is no exclsuion flag available for rebate related AS. This means multiple tables for an access sequence can be aplied at the same time.Rebate related condition types are identified by codnition class -C. After defining and creating condition types for rebated include them in the pricing proceedure. The requirement should be 24 here which implies that the accruals are calculated on the basis of invoice/bill. The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requiremnt 24, if u want to see reabtes at order time. Now payment of rebates:Payments can be maunal or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlemetn. You use partial settlement only when rebate agreement is defined for a full year but the paoyouts are supposed to happen on a monthly, quarterly or anyother specified period. These accurals are based on sales volume and when they are posted billing is created int eh follwoing manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is createdCustomer account/ is debited andAccrual provision account is credited. Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement. First of all rebates are more or less discounts which are offered to customers. The rebates are based on the volume of the business the customer does with you within a specified time. for eg if the customer agrees for Rs.1 Crore worth of business with u in 1 year, then you activate your rebate porocess. if at the end of the year the customer DOES achieve the target u offer him say 2/3/4 % whatever is decided. The rebates are passed on to the customer in the form of Credit notes. The rebate can be given to the customer at one time or in installments also. This is broadly the outline of the rebate process. Note : I recomend you to study the theory part of why rebate and why not a discount.This will help you understand better. May be I can help you with rebate process.(IN -IMG)1. define a rebate agreement type2. define a condition type group3. define a condition type and place this conditionType in the pricing procedure.(REQUIREMENT=24)ALSO IN THE PROCEDURE- ACCRUAL KEY = ERUYOU ALSO HAVE TO DO THE ACCOUNT DETERMINATION FOR REBATES. Once you have defined all the 3 and assignment starts.

 Assign the agreement type to the condition type groupAssign the cond type group to the condition type. Condition technique is also used in rebates.REBATE ACTIVATION- IN CUSTOMER MASTER, SALES ORGANISATION AND FOR THE BILLING DOCUMENT. After having done this please proceed to maintain the condition record for the rebates (transaction code-vbo1) Note: if you maintain the requirement coloumn with the requirement as 24 - the rebate will be affected in the billing document and if you dont give the requirement as 24 your rebate will be affected in the sales order. The rebate process is completed when you have created a credit memo to the customer. The document type for the partial settlement is R3. Please make sure you open two screens SO THAT YOU CAN COMPARE THE NEW ENTRIES WHAT EVER YOU'RE DEFINING WITH THAT OF THE STANDARDS or first you try with the standard condition type boo1, boo2boo3 boo4. AFTER YOU HAVE FINISHED A COMPLETE SALES CYCLE OF CREATION ORDER , DELIVERY AND BILLING.GO TO THE CONDITION RECORD IN CHANGE MODE (VB02) AND SETTLE THE ACCOUNT PARTIALLY. In a simple way, 1. First you need to create a Rebate agreement.2. Create condition record for rebate giving the rebate rate and accrual rate.3. when the rebate relevent billing doc is generated, the rebate and accruals are determined and posted in a seperate GL account as a noted item - amount to be settled. Also it gets copied in the rebate agreement.4. create settlement run using credit memo request and then credit memo to settle this amount with the customer.

How to do rebate processingRebates Processes in SAP is divided into three components1) Configuring Rebates2) Setting Up Rebates3) Managing rebate agreements and payments Pre-requisites- Check the following1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.2.The Billing type must be marked as relevant for rebates.3.The Sales Organization must be marked as relevant for rebates. Condition Technique

Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention. So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16.. *Use creates access sequence (AS). *Enter 1 in field category for rebate specific.  AS after going thru the right path of maintaining access sequence for rebates.The big difference between the rebate and the pricing access sequence is that there is no exclusion flag available for rebate related AS. This means multiple tables for an access sequence can be applied at the same time.Rebate related condition types are identified by codnition class -C.After defining and creating condition types for rebated include them in the pricing procedure. The requirement should be 24 here, which implies that the accruals are calculated on the basis of invoice/bill.The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requirement 24, if u want to see rebates at order time.Now payment of rebates:Payments can be manual or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlement.  You use partial settlement only when rebate agreement is defined for a full year but the payouts are supposed to happen on a monthly, quarterly or another specified period.These accruals are based on sales volume and when they are posted billing is created int eh following manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is createdCustomer account/ is debited andAccrual provision account is credited.Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement. ExampleHow to do a rebate agreement for specific customers with settings details1. Create a condition by copying a standard condition like BO03 in V/062. Assign this condition in the STD pricing procedure with acct key as ERB and accrual key as ERU - V/083.Create a Rebate Agreement in VBO1 (It is O = Owl and not zero). No will be generatedchoose 003 - Customer rebates, enter the customer code, the validity and check for the status should be in Open, click on the conditions enter the percentage and accrual amount. You also can have scales in this. Also you need to maintain the material for the settlement4. Create a sales order for that customer and check the rebate agreement.5. You can see the rebate condition in the invoice only.6. Once you have posted the invoices, then go to rebate agreement no. Click on verification and it will show the order details.7. For settlement change the status of the rebate to B - release for the settlement.8. Credit memo request will b-generated copy the no. And go to VA02, remove the blocks if any and create an invoice (credit memo). This will show u the accrual amount.9. In both the invoice and the credit memo check the posting - accounting document it will show u the accrual as negative.10. Again go to rebate agreement and check the status it will show you D - Final settlement of agreement already carried out

Rebates Processs in SAP is divided into three components1) Configuring Rebates2) Setting Up Rebates3) Managing rebate agreeeements and payments Pre-requsiistes- Check the following:1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.2.The Billing type must be marked as relevant for rebates.3.The Sales Organisation must be marked as relevant for rebates. Condition Technique :Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention.So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16.. Use create access sequence (AS). Enter 1 in field category for rebate specific. AS after going thru the right path of maintaining access sequence for rebates. The big difference between the rebate and the pricing access sequence is that there is no exclsuion flag available for rebate related AS. This means multiple tables for an access sequence can be aplied at the same time.Rebate related condition types are identified by codnition class -C. After defining and creating condition types for rebated include them in the pricing proceedure. The requirement should be 24 here which implies that the accruals are calculated on the basis of invoice/bill. The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requiremnt 24, if u want to see reabtes at order time. Now payment of rebates:Payments can be maunal or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlemetn. You use partial settlement only when rebate agreement is defined for a full year but the paoyouts are supposed to happen on a monthly, quarterly or anyother specified period. These accurals are based on sales volume and when they are posted billing is created int eh follwoing manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is createdCustomer account/ is debited andAccrual provision account is credited. Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement. 

First of all rebates are more or less discounts which are offered to customers. The rebates are based on the volume of the business the customer does with you within a specified time. for eg if the customer agrees for Rs.1 Crore worth of business with u in 1 year, then you activate your rebate porocess. if at the end of the year the customer DOES achieve the target u offer him say 2/3/4 % whatever is decided. The rebates are passed on to the customer in the form of Credit notes. The rebate can be given to the customer at one time or in installments also. This is broadly the outline of the rebate process. Note : I recomend you to study the theory part of why rebate and why not a discount.This will help you understand better. May be I can help you with rebate process.(IN -IMG)1. define a rebate agreement type2. define a condition type group3. define a condition type and place this conditionType in the pricing procedure.(REQUIREMENT=24)ALSO IN THE PROCEDURE- ACCRUAL KEY = ERUYOU ALSO HAVE TO DO THE ACCOUNT DETERMINATION FOR REBATES. Once you have defined all the 3 and assignment starts. Assign the agreement type to the condition type groupAssign the cond type group to the condition type. Condition technique is also used in rebates.REBATE ACTIVATION- IN CUSTOMER MASTER, SALES ORGANISATION AND FOR THE BILLING DOCUMENT. After having done this please proceed to maintain the condition record for the rebates (transaction code-vbo1) Note: if you maintain the requirement coloumn with the requirement as 24 - the rebate will be affected in the billing document and if you dont give the requirement as 24 your rebate will be affected in the sales order. The rebate process is completed when you have created a credit memo to the customer. The document type for the partial settlement is R3. Please make sure you open two screens SO THAT YOU CAN COMPARE THE NEW ENTRIES WHAT EVER YOU'RE DEFINING WITH THAT OF THE STANDARDS or first you try with the standard condition type boo1, boo2boo3 boo4. AFTER YOU HAVE FINISHED A COMPLETE SALES CYCLE OF CREATION ORDER , DELIVERY AND BILLING.GO TO THE CONDITION RECORD IN CHANGE MODE (VB02) AND SETTLE THE ACCOUNT PARTIALLY. In a simple way, 1. First you need to create a Rebate agreement.

2. Create condition record for rebate giving the rebate rate and accrual rate.3. when the rebate relevent billing doc is generated, the rebate and accruals are determined and posted in a seperate GL account as a noted item - amount to be settled. Also it gets copied in the rebate agreement.4. create settlement run using credit memo request and then credit memo to settle this amount with the customer.