How does rebate work in SAP SD?

Rebates – SAP SD. A rebate is a sales promotion technique that a seller applies to improve sales volume. It is generally a time-bound, after-sale discount that is based on a volume of sales made to a particular customer and has either a prospective or retrospective effect.

How does rebate work in SAP?

The rebate configuration process in SAP SD consists of ten steps:

  1. Define agreement type.
  2. Condition type groups.
  3. Condition technique for rebate processing.
  4. Account determination for rebates.
  5. Activate rebate processing.
  6. Create a rebate agreement.
  7. Create a sales order.
  8. Create delivery.

How do I create a rebate in SAP SD?

Rebate Process Configuration

  1. Step 1: Define Agreement Type.
  2. here I selected standard and renamed “0002-Material Rebate” to “Z002- Material Rebate-AA11”
  3. 2.1: Click on Define condition Type groups.
  4. Step 2.2: Assign Condition Types /tables to Condition Type groups.
  5. Click on it.
  6. Check agreement status to ‘B’

What is SAP vendor rebate?

Details – Vendor rebate overview. Rebate Arrangement is contract that is made between the vendor & the buyer for giving certain percentage/value of discounts by vendor on purchase over a particular value/quantity of material. These discounts are stored in the system as “Rebate arrangements”

What is the prerequisite to process rebates?

Prerequisites for Rebates Processing A) Activate Rebate processing in the Sales Organization. Define, Copy, Delete, Check Sales Org. Tick the Rebate Processing active check box. And go to Sales area data section, Billing tab.

What is the difference between rebate and discount?

A deduction in the purchase price given to the buyer, by the seller for various reasons, is known as discount. The rebate is the amount of the purchase price refunded by the seller to the buyer, when the quantity purchased reaches the specified limit.

How do I account for rebates received?

Any inventory-related rebate your company receives should not be recorded until receipt is likely. Once this occurs, the rebate should be recorded as a reduction in the cost of the inventory. If the rebate does not arrive when it’s expected to, it should be recorded as the gross amount.

What is vendor rebate?

A vendor rebate agreement is a record of a contract with a vendor that specifies the negotiated terms and conditions under which the company qualifies for a monetary reward in return for achieving preset purchase targets. Vendor rebate agreements are recorded on the Rebate agreements page.

What is rebate accrual in SAP?

Overview. In the conditions of rebate agreements you maintain Amount and Accrual. The Amount will be used for the settlement. The Accruals is used to automatically accrual the value that will be paid to customer by the settlement.

What is the difference between discount and rebate in SAP SD?

A discount is money you save instantly. With a rebate, you buy the item at full price, and then have to send out some paperwork and proof of purchase, then the company sends you a rebate check.