Rebate --> Sales Promotion Technique--> Discounts given to customer based on sales volume or

performance--> Valid for certain period of time.

Performance --> manually accuredSales volume --> 1) manually

2) Automatically

Rebate --> full settlement --> Partial settlement

3 steps (VB01)--> initiate by creating rebate agreements--> automatic/manual posting of accruals--> rebate settlement

Rebate Activation--> Sales org.--> payer--> Billing doc.

Account keyERV - posting accrual --> Accrual G/L Account

--> Rebate Expenses provisional accounting

ERB - posting actual rebate expenses --> rebate expenses G/L accounting

Five types of rebate:Condition type

1) Group rebate (0001) - Cust/mat or Cust/rebate groups(B001)

2) Customer rebate (0003) - Based on customer or uses of %calc.(B003)

3) Material rebate (0002) - Cust/mat or quantity depend calc.(B002)

4) Hierarchy rebate (0004) - Cust hierarchy/(B004)material or hierarchy alone(B005)

5) Independent of sales volume (0005) - Lumsum pay to customer(B006).

=> Rebate processing start when rebate relavant billing doc is generated.=> A credit memo request is generated for the rebate settlement (partial payment)=> When you create a credit memo with reference to credit memo req the

accruals amount is posted in accounting.

Accruals --> The amount the company owe's to the customer.

Rebate agreement are created with reference to rebate agreement type. Rebate is determined by pricing procedure using rebate basic subtotals. Accruals are posted in FI as soon as the rebate relavant billing doc. Is generated. Settlement can be done

--> Automatically--> manually - performance/Retroactive rebate--> background

Accruals are reversed when rebate agreement is settled by the credit memo. Retroactive rebate - Take in account the biiling doc. Created before the rebate

agreement. For retroactive rebate agreement the accrual amount is not automatically posted,

must be entered manually. Accruals are cancelled automatically when a credit memo is created, provided

that rebate agreement type is set.

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