SD: Rebates

Purpose:

1. A rebate is a discount given to the customer retroactively. This discount is based on the sales volume over a specific period of time.
2. Rebate can be independent of sales volume also.

Process:

1. Create rebate agreement. Specify payer, condition record, validity, settlement material etc.
2. System keeps track of rebated related billing documents including credit and debit memos.
3. Accruals are posted to financial accounting when billing document is released to accounting.
4. Rebate settlement can be done either manually or automatically or using batch programs (in the background).
5. A credit memo is issued for the accumulated rebate amount to settle the rebate agreement.
6. Retroactive rebate agreement helps to take care of billing document (within rebate agreement validity period) created before creation of rebate agreement.

Configuration/Master Data

1. Rebate processing must be activated for customer master (payer), Sales organization and Billing document type.
2. Rebate condition types are created with condition class ‘C’ (Expense reimbursement).
3. Define rebate agreement type.
4. Define condition type groups to define group of condition types and tables for rebate processing.
5. Assign condition type group to rebate agreement type.
6. Assign condition types and conditions tables to condition type groups.