Vendor Rebate process and settings
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
Vendor rebate overview
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
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
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.
Inputs for Vendor Rebate Arrangement
Master data change – Vendor Master Update
Master data New– Rebate Arrangement – Overview (Screen 1) (MEB1)
Master data New– Rebate Arrangement – Condition record (Screen 2)
Condition record for rebate condition types (A001) –
Transactional data – Business volume comparison (MEU2)
User can compare business data with vendor and make changes in business volume figures before settlement.
Transactional data – Rebate settlement (MEB4)
Vendor rebate options –
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
Required Configuration data
1. Assign rebate condition type to rebate agreement type
2. Number range assignment to rebate agreement type