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Author's profile photo Deepali Shenaoy

Rebate Management Process

The objective of the blogpost is to explain the process of Rebate Management in SAP Business ByDesign system.

What is Rebate Management?

Rebate Management is one of the important concepts in the Customer Relationship Management module.

A rebate is a payment back to a buyer of a portion of the full purchase price of a good or service. The main goal of rebates is to build a long-term relationship with the customer.

Rebate is defined as to give a discount on something or give a portion of an amount billed back to the payer. An example of rebate is an appliance store giving a customer Rs.2,000 cashback after they’ve paid Rs.20,000 for a microwave oven. To deduct or return (an amount) from a payment or bill we do the rebate management process. These discounts are based on specific terms and conditions that are defined in rebate agreements.

Prerequisites:

  • Business Configuration> Implementation Project> Edit Project Scope> General Business Data> Product & Service Pricing> Sales Price Specification> Enable

  • Business Configuration> Implementation Project> Edit project scope> Question> Sales price specification> Enable the question “Do you wish to maintain rebate?” with a Yes> Finish

  • Business Configuration> Open Activity List> Document Numbering Format for Customer Invoicing> Maintain numbering rule for your company with Document Type as Rebate Credit Memo with a Prefix Value> Save & Close

  • Account Management> Create a customer with all the mandatory fields in all the tabs including Sales and Financial Data tab> Save & Close
  • Assign the ‘Rebate Management’ work center for the user
  • Organizational Management> Organizational Work Distribution> Sales Unit for Manual Invoices> Edit> Add your company sales> Below add your User ID in employee tab> Save and Close

Process:

  • Rebate Management> New Rebate Agreement> Fill in the details like ID, Customer details, Product, Currency, Start and End date of the agreement and Accrual Rate> Add the settlement rates in % with amount> Save> Release> Activate Settlement

  • Customer Invoicing> New manual invoice> Add the same customer and product entered in the Rebate Agreement> In the pricing tab, rebate details will be populated> Check> Release

  • Rebate Management> Rebate Agreement and Settlement Runs> Select the line item> Schedule> Start Immediately> Save & Close> Refresh> Check in execution details> Click on Application LogID

  • Results tab> Expand all> Rebate Credit Memo will get created

  • Rebate Management> Rebate Credit Memo Request> Edit> Check the details> Release

I have tried to explain the topic ‘Rebate Management’ in simple terms with exact steps so that there are no errors created in the system while trying Rebate Management process in the system. I hope it would be helpful for those who want to understand the process of Rebate Management in SAP Business ByDesign system.

I would love to read some feedback and thoughts from your side in the comment section.

You can refer to more Customer Relationship Management related topics from the openSAP course:

https://open.sap.com/courses/byd6

Some of the Rebate Management related documents from Help Library are:

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2ceda5c8722d1014a1bbd405b4b2d252.html?locale=en-US

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2bd85773722d1014adace4227a9c6efa.html?locale=en-US

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2de1920c722d1014b2cf894b0a6670d3.html?locale=en-US

 

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      4 Comments
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      Author's profile photo harsha Salian
      harsha Salian

      The process flow is very clear and understandable.

      Author's profile photo Deepali Shenaoy
      Deepali Shenaoy
      Blog Post Author

      Thank you Harsha Salian

      Author's profile photo Samitha Kotian
      Samitha Kotian

      Excellent

      Author's profile photo Deepali Shenaoy
      Deepali Shenaoy
      Blog Post Author

      Thank you Samitha Kotian