Rebate in MM
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
- T-codeàMEB1
Select Agreement Type -1000(Vendor Based Rebate).
-2000(Material Based Rebate)
Then select 
.
Enter the required Purchasing.Org & Purchasing Group
Enter the Condition Granter ( i.e. Vendor),Currency, validity start & end of the agreement.
Select the .
Maintain the rate of rebate.
Select 
Maintain Scales according to the value & discounts.
- 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.
Step 2: Setting up the vendor master.
T-code: XK02
Select the Purchasing Data Field & select the mentioned fields in Control data.
- 1. Subsequent Settlement
- 2. Subseq.sett.index.
- 3. B.vol comp./ag.nec
Step 3: Partner function
The partner function Invoicing Party need to be maintained as to vendor.
Step 4:Define Business Volume Comparison type
- SPRO–>MM–>Purchasing–>Subsequent Settlement–>Agreements
Step 5: Define Rebate Arrangement Types for Subsequent Settlement
- SPRO–>MM–>Purchasing–>Subsequent Settlement–>Agreements
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.
- In Conditions tab, check the Rebate Condition –>A001.Select Details .
Details Screen: Rebate Agreement 37 Active for the Vendor.
Rebate Agreement –37 picked automatically for the Vendor as created.
Step 7: Goods Receipt
Step 8: Invoice Verification
T-code: MIRO
Step 9: Running Rebate Settlement
T-code: MEB4
Enter the Vendor as Condition Granter, Settlement date as the agreement end date mentioned & simulate.
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%
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%
Simulating Finally
Settlement Done
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
Its Really Good Document
thanks for your sharing.
Arun, Good piece of work..
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
Great documentation!!
Thanks.
keep it up !
thanks bro....great doc.
Partha
Great, thank you for share.
This is really nice document, Thank you for sharing it. 🙂
Nihal
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,
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.
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.
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.
Thanks for your sharing.
Good work.
HT
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
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
Hi Luis,
Did you try to use tx. MEU2 before the settlement? Perhaps it is what you need.
Regards,
Alejandro
Thank you Arun for the detailed document. It was very helpful for setting my first rebate agreement.
Excellent Document . Never tried rebate document yet . This one was helpful and informative.
Regards,
Aaditya Hamine
useful document
Thanks
Sudhakar
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
Hi Arun,
Does this also work for several item lines in one PO? We are under the impression that if you define the rebates on header level in the outline agreement that the rebates are only consider on itemline instead of full PO qty.
What we want to introduce is for example: 2% rebate when you buy 1 to 2 pcs, 5% rebate if you buy 3-5 pcs. The rebate needs to be considered on the full PO qty so for several items. Does this work?
Thanks in advance.
BR,
Kathy