A return of the original payment for some service or merchandise ; partial refund
A vendor credit that can be applied to reduce the amount owed to a vendor.
Refund a certain amount of money via credit memo, reducing amount owed by a customer.
Can be applied to customer’s future or open invoices.
REBATES TERMS AND DEFINITIONS
customer rebates:calculated on sales transactions. Credits or refunds created in the claims process for the customer of the transaction
Vendor rebate on Purchase: Calculated on purchase transaction.Can be claimed by a third party or the vendor on the purchase transaction(Invoice receivable for the customer representing the vendor , or vendor credit for future purchases)
Vendor rebate on Sales: Calculated on Sales transaction, based on variety of cost basis.Claimed from the vendor or manufacturers(third party named on the rebate agreement) on the condition that the purchase items were sold.
REBATE CALCULATION METHODS
Monthly Volume Rebate: Tiered amount incentives based on sales amount
(eg: 2 % for the first 1000, 2.5% for 1001 to 3000, 3.5% for 3000 to 4000,5.2% for 4001 or greater).
Flat $:(Eg: $5.00 for each unit purchased or sold)
Fixed %: (Eg: 10 % of the sales price or purchase)
Fixed Cost:Amount between amount paid and amount charged is refunded
Guaranteed Profit%: Customer rebates Only. The purchaser is guaranteed the Rebate percentage as margin or profit.
SETTING UP REBATE AGREEMENT
Rebate agrmnts are defined to provide instructions for calculating rebates on transactions, for handling accruals and for processing claims.
A.Rebate agreements
Primary info:
Terms, Agreement name , type of rebate ,agreement status, agreement start and end date, subsidiary, currency, stackbale, Priority, last claim generation date
Eligibility:
Rebate calculation type, tier type, default % or default amount.
Accruals:Process Accrual, Accrued expense/income account, Accrued payable (Customer rebates),Accounts receivable(Vendor rebate on purchase or sale)
Claim:can use credit or refund remittance type, transaction type,claim item- non stock or other charge item
Emails are sent at the time of Accrual entry , creation/view of claims, generation of claims, and at time of reversal of accruals and when final credit memo or invoice is ready to view.
B.AGREEMENT DETAILS
The agreement details hold the detailsthat will serve as basis for the eligibility to rebates
Records the entity:(elgible vendor or customer) , item,item/classification, calculation methodto be used, exclusions, and Price passthrough fields.
Created via suitelet using the ‘Define Rebate eligibility’ button in the Agreement details subtab(saved search for items and customer selection)
Created via Agreement Detail sublist from the rebate agreement parent record.
Created via the menu path of agreement detail record through Rebate Management >Setup>Rebate agreement details>new
Created via CSV
ACCRUAL PROCESSING
Accrual Amount: is determined based on the nature of the rebate(eg.line item amount or tier based rebate)
Scheduling accruals- script(automatically at a desired time)
Manula creation of an accrual- Through the agreement detail or rebate management>Transaction>Accrual>new
Status is pending processing upon creation (processing and completed later), rebate agreement for journal entries, rebate type, Agreement currency, accrual amount after the save , accrual date, accrual period.
CLAIMS PROCESSING
Claim rebates process generates Creidt memo or customer refund for customer rebates
Claim rebates process generates Bill credit or Invoice for vendor rebates
Rebate tran details that are referenced for the claim are updated with the claim generation log reference
Next claim : for no tiered agreement transactions that have been marked with a claim generetaion log reference through will not be included
For tier based agreement will prompt recalculation inclucing rebate tran details previously processed
Claim genertaion log: created from agreement detail, claim generation status,remittance typr, claim date, total claim amount.
Generating the claim: Generated transactions will belinked to the transaction log. Claim generation date , claim transaction #,claim generated by, reversal of the accrual.