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rebate arrangements

Former Member
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hai thanks for all the gurus for reply can also tell me what is the rebate arrangement and availabulaty check because iam preparing for interviews

thanks in advance

sravanidevisetty

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Answers (7)

Answers (7)

Former Member
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send a test a mil at shesagiri@gmail.com will send the doc

Former Member
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Hi Sravani,

How to do rebate processing

Rebates Processs in SAP is divided into three components

1) Configuring Rebates

2) Setting Up Rebates

3) Managing rebate agreeeements and payments

Pre-requsiistes- Check the following:

1.The payer partner needs toi have the rebate field checked in the customer master on the sales area-billing doc tab.

2.The Billing type must be marked as relevant for rebates.

3.The Sales Organisation must be marked as relevant for rebates.

Condition Technique :

Rebates, use the condition technique, but distinguish themselves from pricing in applying to transactions over time, versus on a transaction basis. Rebates have their wn field catalog and their own condition table naming convention.So you could have two condition table "001" one for pricing and one for rebates, which could have different key fields. You need to use the technical names A001 For pricing and KOTe001 for rebates when you use the query type using transaction SE 16..

Use create access sequence (AS). Enter 1 in field category for rebate specific. AS after going thru the right path of maintaining access sequence for rebates.

The big difference between the rebate and the pricing access sequence is that there is no exclsuion flag available for rebate related AS. This means multiple tables for an access sequence can be aplied at the same time.

Rebate related condition types are identified by codnition class -C.

After defining and creating condition types for rebated include them in the pricing proceedure. The requirement should be 24 here which implies that the accruals are calculated on the basis of invoice/bill.

The other fields- alctyp and altcbv does not allow you to manipulate how a rebate is calculated. Also, remove the requiremnt 24, if u want to see reabtes at order time.

Now payment of rebates:

Payments can be maunal or in full settlement. When you do manual payments, it defines how much can be paid out during a partial settlemetn. You use partial settlement only when rebate agreement is defined for a full year but the paoyouts are supposed to happen on a monthly, quarterly or anyother specified period.

These accurals are based on sales volume and when they are posted billing is created int eh follwoing manner. Provision for accruals is debited and Sales revenue is credited. When rebate credit memo is created

Customer account/ is debited and

Accrual provision account is credited.

Also, please note that when rebates are created without dependent ona material but on customer/material you need to refer to a material for settlement

What exactly do you wish to know in Rebates? The total outline of the Rebate process or each and every step in the SAP system?

First of all rebates are more or less discounts which are offered to customers. The rebates are based on the volume of the business the customer does with you within a specified time. for eg if the customer agrees for Rs.1 Crore worth of business with u in 1 year, then you activate your rebate porocess. if at the end of the year the customer DOES achieve the target u offer him say 2/3/4 % whatever is decided. The rebates are passed on to the customer in the form of Credit notes.

The rebate can be given to the customer at one time or in installments also.

This is broadly the outline of the rebate process.

Note : I recomend you to study the theory part of why rebate and why not a discount.

This will help you understand better.

May be I can help you with rebate process.(IN -IMG)

1. define a rebate agreement type

2. define a condition type group

3. define a condition type and place this condition

Type in the pricing procedure.(REQUIREMENT=24)

ALSO IN THE PROCEDURE- ACCRUAL KEY = ERU

YOU ALSO HAVE TO DO THE ACCOUNT DETERMINATION FOR REBATES.

Once you have defined all the 3 and assignment starts.

Assign the agreement type to the condition type group

Assign the cond type group to the condition type.

Condition technique is also used in rebates.

REBATE ACTIVATION- IN CUSTOMER MASTER, SALES ORGANISATION AND FOR THE BILLING DOCUMENT.

After having done this please proceed to maintain the condition record for the rebates (transaction code-vbo1)

Note: if you maintain the requirement coloumn with the requirement as 24 - the rebate will be affected in the billing document and if you dont give the requirement as 24 your rebate will be affected in the sales order.

The rebate process is completed when you have created a credit memo to the customer.

The document type for the partial settlement is R3.

Please make sure you open two screens SO THAT YOU CAN COMPARE THE NEW ENTRIES WHAT EVER YOU'RE DEFINING WITH THAT OF THE STANDARDS or first you try with the standard condition type boo1, boo2

boo3 boo4.

AFTER YOU HAVE FINISHED A COMPLETE SALES CYCLE OF CREATION ORDER , DELIVERY AND BILLING.

GO TO THE CONDITION RECORD IN CHANGE MODE (VB02) AND SETTLE THE ACCOUNT PARTIALLY.

I hope this will be of any help to you.

In a simple way,

1. First you need to create a Rebate agreement.

2. Create condition record for rebate giving the rebate rate and accrual rate.

3. when the rebate relevent billing doc is generated, the rebate and accruals are determined and posted in a seperate GL account as a noted item - amount to be settled. Also it gets copied in the rebate agreement.

4. create settlement run using credit memo request and then credit memo to settle this amount with the customer.

Reward points if it helpful

Regards

Govind.

Former Member
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Rebate Agreements

A rebate is a special discount which is paid retroactively to a customer. This discount is based on the customer's sales volume over a specified time period. You can process rebate agreements when the following prerequisite conditions are met:

sales org is relevant for rebate processing

payer (customer master record) is relevant for rebate processing

billing type (invoice, credit memo) is relevant for rebate processing

Condition types for rebate agreements:

BO01 – Customer/Material or Customer/Rebate group = % rebate

BO02 – Customer/Material = quantity dependent

BO03 – Customer = % rebate

BO04 - Customer hierarchy = % rebate

BO05 – Customer hierarchy/Material = % rebate

BO06 – Sales vol independent

Creating Rebate Agreements

Logistics  Sales and distribution  Master data

Agreements  Rebate agreement  Create

To create a condition record for a rebate agreement:

When creating or changing rebate agreements, you can create condition records by choosing, go to Conditions to get to the Agreement Overview screen.

Enter the data necessary to create a condition record (for example: customer and condition rate).

Choose ENTER.

If you do not enter a value for the accrual rate, the system automatically proposes the value you entered as the condition rate.

To create a pricing scale for a condition record, select the condition record and choose Scales.

To display or change details in a condition record, select the condition record and choose Details.

It is possible to see an overview of condition records that already exist in other rebate agreements and that have the same key combination (customer/material, customer/rebate group, and so on).

To view the list, select Validity periods.

You can set for each rebate agreement whether it is to be renewed automatically or not. Select Extras Rebate calendar Reactivate or Remove in the Change Rebate mode.

Rebate Process with Ref. to SO

Rebate agreemnts is based on agreement types.Conditon records which are created like B001 and B002 are linked to the rebate agreeements specifying the rebate rate + the accrual rates.condition records specify the rebate rate and the accrual rates.

Consider an example..

You decided to give a rebate of 3% to a customer whose sales vol is $1000 for a particular SO

Then the rebate value is $30..

Now when you make the rebate settlement by doiing the Credit memo and you decide to pay $27, then the accounting will be generated saying 27$ paid towards rebate and 3$ is the accrual which you owe to the customer

Procedure:

Rebate agreement: Transaction code: VB01

When you go to VB01, choose agreement type 0002 and then in conditions give

Material rebate

1 20

20 30

Now create a sales order with a material say M-11 for SOrg 1000 12 00 with QTY 6

Now check VB03 and see rebate agreemtent it will say Accruals 120 and payments 0

since your rebate is not settled still.

Rebate setllement

Go to VB02 enter ur sales deal no, and change the agreemetn status to B then enter Shift+F12 and enter the amount to be paid for example u say $80

Then check in rebate payments rebate doc and partial setllemetn since you have not paid in full.

View the credit memo request

Remove the Billing bloock Go to VA01 and put order type G2 ,,,go to create with ref and enter ur Sales order no,,,save the doc now...

Then go to VF01 and enter the credit memo reqst no generated...save the doc no and go to VF02 and say release to accounting

Now the final settlement will be this way

Accruals:120

Accrual reversed:80

Rebate pay:80

Amount payable:40

So the balance 40 is still the accrual

This is an example how a rebate will be processed with ref to a SO with an example.

Former Member
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hi

Message was edited by:

prashanth goud

Former Member
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Hi Sravani,

Availability check

1. Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date. For this purpose the system takes into account pre-delivery activities such as scheduling for picking or packing times and the time taken to produce or obtain the material. It also performs several background functions such as Backorder processing, rescheduling and ATP quantities.

2. Backorder processing: processing of a sales order that has not been fully confirmed or not confirmed at a certain delivery date.

3. Rescheduling: is a proposal of how – confirmed quantities already assigned to a sales order can be reassigned to other sales orders that have a higher priority.

4. Available to promise (ATP): is a process of checking the available quantities of a material. The ATP quantity consists of warehouse stock + planned receipts (incoming stock) – planned issues (outgoing stock). to examine stock on hand (CO09) proceed to logistics – sales & distribution – sales – environment – availability overview.

5. Replenishment lead time (RLT): is the time taken for the material to become available either internally (in house production) or externally (from a vendor). The most important things to consider during an external procurement are purchasing and MRP 2 (procurement) views of MMR where the processing time for purchasing, planned delivery time and goods receipt processing time are taken into account. On the other hand internal procurement is based on in house production time (MRP 2 view) goods receipt processing time or alternatively RLT time, which is found on MRP 3 view.

6. RLT (Replenishment Lead Time) is the time taken for the material to become available. RLT is only used when doing an ATP check (Available To Promise). The value of RLT for a material is specified on material master record.

7. there are three types of availability checks –

Check on basis of ATP quantities.

Check against product allocation.

Check against planning.

Configuring Availability check through Checking Groups –

1. The checking group + checking rule determine how the availability check is to be performed.

2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.

3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally within the system and cannot be changed.

4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.

5. Briefly explaining the above – checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.

6. advantages of individual processing over summarized processing –

Backorder processing is possible.

You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock.

The system automatically uses individual requirements in case of special stock items.

7. Required data for the Availability check to be carried out –

The Availability check must be switched on at the requirement class level.

The Availability check must be set at the schedule line level.

A requirements type must exist by which the requirements class can be found.

A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR).

A checking group must be defined in the material master record in the MRP3 screen in the availability check field.

8. configuring Availability check and defining Checking Groups –

Checking groups are introduced into the sales order based on the setting in the material master record.

SAP standard checking groups are 01 – summarized requirements and 02 – individual requirements or you can create your own by copying the standard ones.

Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week.

Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other.

The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.

9. Defining material block for other users – the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.

10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record.

However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant.

This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order.

If an entry exists, this default value is over written by MMR.

11. Controlling Availability Check – in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.

12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.

13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.

14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check.

15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.

16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.

17. defining the elements in the availability check entirely depends on the business needs, but a few tips are given under –

When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant.

A shipping notification on the other hand - a confirmed purchase order – is a good indicator of receiving stock on a specified date.

It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.

Reward points if helpful

Regards

Govind.

Former Member
0 Kudos

hi

Availability check

1. Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date. For this purpose the system takes into account pre-delivery activities such as scheduling for picking or packing times and the time taken to produce or obtain the material. It also performs several background functions such as Backorder processing, rescheduling and ATP quantities.

2. Backorder processing: processing of a sales order that has not been fully confirmed or not confirmed at a certain delivery date.

3. Rescheduling: is a proposal of how – confirmed quantities already assigned to a sales order can be reassigned to other sales orders that have a higher priority.

4. Available to promise (ATP): is a process of checking the available quantities of a material. The ATP quantity consists of warehouse stock + planned receipts (incoming stock) – planned issues (outgoing stock). to examine stock on hand (CO09) proceed to logistics – sales & distribution – sales – environment – availability overview.

5. Replenishment lead time (RLT): is the time taken for the material to become available either internally (in house production) or externally (from a vendor). The most important things to consider during an external procurement are purchasing and MRP 2 (procurement) views of MMR where the processing time for purchasing, planned delivery time and goods receipt processing time are taken into account. On the other hand internal procurement is based on in house production time (MRP 2 view) goods receipt processing time or alternatively RLT time, which is found on MRP 3 view.

6. RLT (Replenishment Lead Time) is the time taken for the material to become available. RLT is only used when doing an ATP check (Available To Promise). The value of RLT for a material is specified on material master record.

7. There are three types of availability checks –

Check on basis of ATP quantities.

Check against product allocation.

Check against planning.

Configuring Availability check through Checking Groups –

1. The checking group + checking rule determine how the availability check is to be performed.

2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.

3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally within the system and cannot be changed.

4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.

5. Briefly explaining the above – checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.

6. Advantages of individual processing over summarized processing –

Backorder processing is possible.

You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock.

The system automatically uses individual requirements in case of special stock items.

7. Required data for the Availability check to be carried out –

The Availability check must be switched on at the requirement class level.

The Availability check must be set at the schedule line level.

A requirements type must exist by which the requirements class can be found.

A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR).

A checking group must be defined in the material master record in the MRP3 screen in the availability check field.

8. Configuring Availability check and defining Checking Groups –

Checking groups are introduced into the sales order based on the setting in the material master record.

SAP standard checking groups are 01 – summarized requirements and 02 – individual requirements or you can create your own by copying the standard ones.

Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week.

Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other.

The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.

9. Defining material block for other users – the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.

10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record.

However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant.

This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order.

If an entry exists, this default value is over written by MMR.

11. Controlling Availability Check – in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.

12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.

13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.

14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check.

15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.

16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.

17. Defining the elements in the availability check entirely depends on the business needs, but a few tips are given under –

When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant.

A shipping notification on the other hand - a confirmed purchase order – is a good indicator of receiving stock on a specified date.

It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.

Former Member
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I am sending you some documentation on both these topics, will help you preparing for the interviews.

Regards

AK

Reward points if helpful