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Author's profile photo Arun Yesodharan

Rebate in MM


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




Enter the required Purchasing.Org & Purchasing  Group

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


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


Maintain the rate of rebate.


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

Maintain Scales according to the value & discounts.


  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.


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./


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


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.


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


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

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      Author's profile photo prabhu thiyagarajan
      prabhu thiyagarajan

      Its Really Good Document

      Author's profile photo Former Member
      Former Member

      thanks for your sharing.

      Author's profile photo Former Member
      Former Member

      Arun, Good piece of work..

      Author's profile photo Sagar Gaikwad
      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.



      Author's profile photo Former Member
      Former Member

      Great documentation!!


      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      keep it up !

      Author's profile photo Partha Sarkar
      Partha Sarkar

      thanks bro....great doc.


      Author's profile photo Steven Hu
      Steven Hu

      Great, thank you for share.

      Author's profile photo Former Member
      Former Member

      This is really nice document, Thank you for sharing it. 🙂


      Author's profile photo Former Member
      Former Member

      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.


      Author's profile photo Arun Yesodharan
      Arun Yesodharan
      Blog 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.  

      Author's profile photo Former Member
      Former Member

      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.

      Author's profile photo Marco Sposa
      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?


      Author's profile photo Henrique José Porfírio Terras
      Henrique José Porfírio Terras

      Thanks for your sharing. 

      Good work.


      Author's profile photo Former Member
      Former Member

      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


      Author's profile photo Arun Yesodharan
      Arun Yesodharan
      Blog 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.



      Author's profile photo Former Member
      Former Member

      Hi Luis,

      Did you try to use tx. MEU2 before the settlement? Perhaps it is what you need.



      Author's profile photo Former Member
      Former Member

      Thank you Arun for the detailed document. It was very helpful for setting my first rebate agreement.

      Author's profile photo Aaditya Hamine
      Aaditya Hamine

      Excellent Document . Never tried rebate document yet  . This one was helpful and informative.


      Aaditya Hamine

      Author's profile photo Sudhakar Chaganti
      Sudhakar Chaganti

      useful document



      Author's profile photo AMOL SALAPURIKAR

      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.


      Author's profile photo Kathy Habrant
      Kathy Habrant

      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.