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Abstract –

This document covers –

Overview of SAP Vendor Rebates and Process Flow

Master data, Transaction data and Configuration settings

What are the inputs required to setup vendor rebate functionality

Options we can leverage through SAP Vendor Rebate

Details –

Vendor rebate overview


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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”

These Rebates arrangements are having validity and we can extend the validity of such an arrangement to cover a longer time-span or “until further notice”. For example, an arrangement created for one calendar year can be automatically replaced by a new, identical one that is valid for the following calendar year.

Levels for Vendor Rebates

Purchasing Organization based rebates –

In this case rebate arrangements are created based on purchasing organization/vendor/material/company code combination. But Purchasing organization  should be assigned to company code.

Plant based rebates –

In this case rebate arrangements are created based on purchasing organization/vendor/material/company code combination. In this case it is not required to  have Purchasing organization assigned to company code. We need to use this rebate  type as in EL purchasing organizations are assigned to plant.

Conditions and Discounts

Value based conditions (Scales) –

During a certain period if purchase value of certain materials exceeds the defined limit then discounts will come into picture.

Quantity based conditions (Scales) –

During a certain period if purchase quantity of certain material exceeds the defined limit then discount will come into picture.

These discounts are in the form of percentage, quantity or fixed value etc. depending on

Calculation type in condition type and business requirements

Note: Apart from Value and quantity scales there are other options as well e.g. Gross  weight, Net weight, volume, distance etc.

Process Flow

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Inputs for Vendor Rebate Arrangement


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Master data change – Vendor Master Update


Vendor Master update – Every Vendor rebate relevant vendor needs to be marked with Subsequent settlement indicators
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Master data New– Rebate Arrangement – Overview (Screen 1) (MEB1)

Rebate Arrangement Condition record – Similar to info record we need to maintain Rebate arrangement condition record for vendor and material/material group with purchasing organization combination.
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Master data New– Rebate Arrangement – Condition record (Screen 2)

Condition record for rebate condition types (A001) –

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Transactional data – Business volume comparison (MEU2)

User can compare business data with vendor and make changes in business volume figures before settlement.

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Transactional data – Rebate settlement (MEB4)

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Vendor rebate options –

Rebate Arrangement at Vendor/Material group level –If a vendor is supplying range of materials belonging to same material group for different plant then only one rebate arrangement needs to maintained for one material group.

Rebate Arrangement at Vendor/multiple materials – If a vendor is supplying range of materials belonging to different material group for different plant then only one rebate condition record needs to maintained for range of materials.

Option of quantity scale vs. value scale – Option to have rebate scales based on quantity procured during specified period.

AP payment procedure to vendor in case of rebates – Payments to the vendors are made by deducting rebate amount from total due.

Message to vendor about settlement 1. Rebate Arrangement creation 2. Rebate settlement run

Rebate partner assignment (Different invoicing party for main vendor)If ordering vendor is different than invoicing party and payments are going to invoicing party. Then rebate amount has to be debited to invoicing party. This scenario we can map in SAP

Required Configuration data


If P.Orgs assigned to plant not to company code. Then we can not use standard Rebate agreement type. We need to create custom agreement type.
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We also need other configuration that is linked to custom rebate agreement type.

1. Assign rebate condition type to rebate agreement type

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2. Number range assignment to rebate agreement type

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3. Controls of subsequent settlement for rebate agreement type
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4. Condition type marked with “Accruals” – This is required to get rebate condition type with value in PO as statistical condition type.
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11 Comments

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  1. Arun Yesodharan

    Hi Sanjay, nice documentation on rebate .

     

    An info you may include is :

    You can create your own  rebate conditions & assign them in the pricing procedure ,

    also you can have two rebate conditions types active i.e in case vendor rebate is applicable for particular amount as well as for quantity…

    A000 is already present in the pricing procedure.

    (0) 
  2. Tanmoy Saha

    Hi Sanjay,

     

    Good piece of work on rebate.

     

    One question: Shall We have to include rebate condition type in our pricing procedure.

     

    I am testing the screnio inspite of maintaining the above step. Rebate condition type not reflecting in condition of PO.

     

    Appreciate your feedback.

    (0) 
    1. Sagar Gaikwad Post author

      Hello Tanmoy,

       

      I am Sagar not Sanjay

      Answer to your question –

      You have to include condition type in your pricing procedure.

      And do remember to mark Accruals check box in condition type. Then only it will appear in PO.

       

      Thanks,

      Sagar

      (0) 
  3. Bisweswar Sahu

    Hi Sagar,

     

    Please maintain menu path/T-Code against configs (like Custom Agreement Type, Assign rebate condition type to rebate agreement type etc.) described.

     

    Regards,

    Bisweswar

    (0) 
  4. Sergio Cecchin

    Hi

     

    Very good information.  Hoping someone can help.  We have an arrangement with conditions at a vendor material group level.  In trying to perform a business volume comparison, the vendor is paying a rebate on a material group that we did not accrue against.  Probably a master data issue, and we have a condition record created for the material group being paid against, (again, just no actual accrual), but I am unable to enter the vendor business volume because our condition is zero.  Documentation says this should be doable, but until now no success.

     

    Anyone experience this and come up with a solution?

     

    Thanks

    Sergio

    (0) 
  5. Hasina Tarmahomed

    Hi Sagar

     

    how can I get a rebate condition to work for

    a rebate applicable at

    1) material level first

    2) material group level  – only if rebate at material level is not found.

     

    I want to use just ONE rebate condition

    however using one access sequence with 2 steps does not work.

     

    (the material rebate condition works;

    the material group level brings up the % rebate however the value is null on the condition record on the pricing schema).

     

    Using two separate conditions cannot be used on one rebate agreement type on the config setting.

     

     

    What options do I have?

    regards

    Hasina

    (0) 
  6. Arie Berg van den

    Hi Sagar & others,

     

    I am new here but I have following question regarding this vendor rebates.

    I created a rebate-agreement on March 4th 2015, but the agreement actuall already runs from 1jan-31dec, so how can I still include the finished and settled po’s from 1jan- now ?

    If not possible to include, I will never reach the agreed targets. Because the amount is still zero, it is also not possible (yet) to manually overrule the amount in MEU2

     

    Any info is appreciated,

    Regards,

    Arie

    (0) 
    1. J├╝rgen L

      Moderator message: Please post general questions in the forum.  Only questions specific to content of this document should be posted in the comment section here.

      (0) 

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