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REBATE PROCESS IN PURCHASE

Rebate agreement is contract that is made between the vendor & the buyer for giving certain percentage of discounts on supplying over a particular value  of material.

The below mentioned is the step for the same

Step 1: Creation of a Rebate Agreement.

Vendor Used:100023

Rebate Agreement Created: 37

  1. T-codeàMEB1

Select Agreement Type -1000(Vendor Based Rebate).

                                   -2000(Material Based Rebate)

Then select /wp-content/uploads/2012/11/1_153333.jpg

.

/wp-content/uploads/2012/11/2_153334.jpg

/wp-content/uploads/2012/11/3_153344.jpg

Enter the required Purchasing.Org & Purchasing  Group

Enter the Condition Granter ( i.e. Vendor),Currency, validity start & end of the agreement.

/wp-content/uploads/2012/11/4_153345.jpg

Select the   ./wp-content/uploads/2012/11/5_153346.jpg

/wp-content/uploads/2012/11/6_153350.jpg

Maintain the rate of rebate.

Capture.JPG

Select  /wp-content/uploads/2012/11/8_153352.jpg

Maintain Scales according to the value & discounts.

/wp-content/uploads/2012/11/9_153362.jpg

  1. Goto–>Material for settlement.

Enter the material code. This material will be used at the time of settlement through credit memo. We can create a dummy material for this purpose.

Save the agreement.

/wp-content/uploads/2012/11/a_153363.jpg

Step 2: Setting up the vendor master.

T-code: XK02

Select the Purchasing Data Field & select the mentioned fields in Control data.

  1. 1. Subsequent Settlement
  2. 2. Subseq.sett.index.
  3. 3. B.vol comp./ag.nec

/wp-content/uploads/2012/11/b_153364.jpg

Step 3: Partner function

The partner function Invoicing Party need to be maintained as to vendor.

Step 4:Define Business Volume Comparison type

  1. SPRO–>MM–>Purchasing–>Subsequent Settlement–>Agreements

/wp-content/uploads/2012/11/c_153366.jpg

Step 5: Define Rebate Arrangement Types for Subsequent Settlement

  • SPRO–>MM–>Purchasing–>Subsequent Settlement–>Agreements

/wp-content/uploads/2012/11/d_153367.jpg

Here you can assign the BV Comp/agree.type

The time of update of the Settlement ie PO/GR/IV

I have used IV as the control parameter & hence did the complete process to update agreement.

STEP 6: Creation of PO

T-Code: ME21N

Create a fresh PO for the vendor 100023; maintain the Material, Plant, Quantity etc.

/wp-content/uploads/2012/11/e_153368.jpg

  1. In Conditions tab, check the Rebate Condition –>A001.Select Details ./wp-content/uploads/2012/11/f_153369.jpg

/wp-content/uploads/2012/11/g_153370.jpg

Details Screen: Rebate Agreement 37 Active for the Vendor.

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Rebate Agreement –37 picked automatically for the Vendor as created.

Step 7: Goods Receipt

/wp-content/uploads/2012/11/i_153372.jpg

Step 8: Invoice Verification

T-code: MIRO

/wp-content/uploads/2012/11/j_153373.jpg

Step 9: Running Rebate Settlement

T-code: MEB4

Enter the Vendor as Condition Granter, Settlement date as the agreement end date mentioned & simulate.

/wp-content/uploads/2012/11/k_153374.jpg

As the PO value is less than 50000, as mentioned in rebate agreement the rebate % is 0.

Created another PO with value 45000; done GR & IV. 

After the 2nd Invoice Done for Rs.45000 (Total PO Value=5000+45000) Hence Rebate of 6%

/wp-content/uploads/2012/11/l_153375.jpg

Created another PO with value 50100; done GR & IV.

After the 3rd Invoice Done for Rs.50100 (Total Value=50000+50100) Hence Rebate of 7%

/wp-content/uploads/2012/11/m_153376.jpg

Simulating  Finally

/wp-content/uploads/2012/11/n_153380.jpg

Settlement Done

/wp-content/uploads/2012/11/o_153318.jpg

Here the material we had mentioned in the agreement 37 as material for settlement is used to post the rebate.

-Arun Yesodharan

Associate Consultant

HCL Infosystems

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21 Comments

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  1. Sagar Gaikwad

    Hi Arun,

    This is really a good document. There are hardly any documents available for SAP vendor rebate on web. I have prepared a client presentation for vendor rebate. Below is document link. You can add your experience/questions about vendor rebate process design if you would like.

    http://scn.sap.com/docs/DOC-46495

    Thanks,

    Sagar

    (0) 
  2. Lakhya Pratim Baruah

    Hi Arun,

    Nice document. I have done exactly checked as per your document.

    Why are the scales maintained. When I try to make a PO for 100000 – it takes rebate as 6% only not 7 %. Even if you make a PO for less value say Rs 10, it takes 6%. (chk PO-Tim Indpn)

    Secondly, if a rebate agreement is only to be settled at the end of the period, not on every PO, how is that to be done.

    Regards,

    (0) 
    1. Arun Yesodharan Post author

      Hi Lakhya,

      The scales will only come into picture once the cumulative figure of the procured qty is executed for rebate settlement.

      In PO it will display remains the same.  

      (0) 
      1. Lakhya Pratim Baruah

        Ok got it.

        in my case while doing MIGO, the Rebate amount is getting deducted from Stock account which should not be. May be there is something wrong in the Step number of my Rebate Condition.

        (0) 
  3. Marco Sposa

    Thanx for the gr8 document, please can you also explain how to remove or cancel a rabate,

    witch are cautions to take be4 cancel the rebate? Are they any actions to take on supplier when the rebate associate to him is dismiss?

    Regards.

    (0) 
  4. Luis Domínguez Robledo

    Thanks a lot for the explanation.

    Please, let me know if it is possible to change the amount of settlement before the posting??

    this is because the client wants to adjust the final amount

    thank you very much

    Luis

    (0) 
    1. Arun Yesodharan Post author

      Hi Luis,

        The system proposes the rebate amount as a cumulative , as applicable in  the rebate period & settlement is posted automatically & cannot be changed in standard.

      You can however try to find any exit/badi available which puts the settlement document to park status & not posted.

      Some of them are :

      LWBON001-Extend comm. structure MCKONA (busn. vols., rebate income)

      LWBON003-Change settlement data before creation of settlement doc.

      LWBON004-Simulation of LIS update for detailed statement

      LWBON005-Index entries for settlement documents, arrangement settlem.

      Regards,

      Arun

      (0) 
  5. AMOL S

    Hi Arun,

    This document is very useful. Thanks for sharing.

    Further on this, can you explain how this will work in central purchasing organization scenario.

    Thanks

    (0) 

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