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SAP Material Management

Pricing

Vendor Rebate Agreements

and

Subsequent Settlements

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Indicates that conditions providing for subsequent settlement may apply to this vendor. Set this indicator if subsequent (end-of-period) settlement can be agreed with this vendor.

Indicator which specifies whether comparison and agreement of the business volume figures recorded by each of the two parties to a volume rebate arrangement for subsequent settlement is necessary prior to final or partial settlement.

If the indicator is set, the process of comparison and agreement (reconciliation) of business volumes must be carried out before final or partial settlement. This indicator serves as the default value for maintenance of volume rebate arrangement so long as the type of comparison and agreement of business volumes is planned for the current arrangement type.

Set this indicator only if an index compilation for subsequent settlement is necessary for the vendor (that is to say, rebate arrangements having retrospective effect are agreed).

Set this indicator only if you are sure that the above case applies. Note that the volume of data will otherwise be unnecessarily inflated.

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Logistics

  • Material Management
  • Purchasing
  • Master Data
  • Subsequent Settlement
  • Vendor Rebate Agreements
  • Rebate Arrangement
  • Create (MEB1)

Irrespective of the material, Vendor T-K521E## gives you a volume rebate of 2% once you reach a business volume of EUR 5,000 and a bonus of 3% once you reach EUR 10,000. Use MEB1 to create this Arrangement for it.

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Agreement

from today

to end of this year

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Set the “Business volume comparison and agreement necessary” indicator for “Final Settlement”

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Select “Vendor” Key Combination and click CHOOSE

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Note

Condition Type

A001

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Scale Type A

Base-Scale or

From-Scale

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Material T-REK20

in the “Material for Settlement” field

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This is the basis (usually for Final settlement at 31.12.2017). In this case, depending on Total Business Volume with the vendor at the end of the period ie 31.12.2017,

if Total business Volume is

5000 - 9999 then Rebate is at 2%, but

if Total Business Volume at the end of the period is 10,000 and above, then the Rebate will be 3%.

Since Period specific Rebate (monthly is 2%) for each month for the Interim Settlement. If Total Business Volume as at 31.12.2017 did not exceed 10,000 then no additional Rebate at 31.12.2017; However, if Total Business Volume exceeded 10,000 or above then additional 1% is offered by the Vendor. This is an Incentive from the Vendor for the Customer to purchase more within the Period of Rebate Agreement to enjoy more Rebates based on Total Business Volumes achieved by end of the Period.

See Period Specific Scale for Each Month for Interim Settlement in Slide 20

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Scale is available

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Check “Period-Specific Conditions”

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Period-specific condition every month until of the validity period.

Period specific Rebates of usually used for Interim Settlement (in this case 2% for each month until 31.12.2017)

SAVE

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Rebate no.90

created

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Use MEB2 to set Agreement Partner

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Back

and SAVE

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Delivery date

TODAY

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Tax Code “0i”

no tax

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Accrual amount of 200 is based on condition type A001 of 2% from the Rebate Agreement

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The Accrual at Goods Receipt that is formed by condition type A001 with the percentage of 2% reduces the receipt value of the posting to the stock or consumption account at goods receipt. You therefore get a cheaper valuation for your stock material.

SAVE

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PO# 4500017253

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Goods Receipt of the Purchase Order

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Material Document Created

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Accounting Document

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Item 1 Stock Account only posted 9800

(-200)

Item 2 Provision for Vendor Invoice is 10,000

Item 3 Rebate Accrual at 200

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Invoice with reference to the PO

Amount 10,000.

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SAVE

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Internal Invoice no generated

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Display Invoice

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Double-click to display Accounting document

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Vendor Account posted as PO total value 10,000 with rebate of 200

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Doc Type NAb4

denoting Rebate Provision in the PO History

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Run a Simulation first and then an Interim Settlement for the Rebate settlement using the last day of the month as the settlement date.

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Rebate Agreement number

Condition Granter in the Agreement

Last day of the current month

Current dates

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Test run

Perform interim settlement accounting

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When you scrolled down, only this screen portion is page up

Interim Rebate will be 2% of 10,000

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Interim settlement

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Make sure Settlement Date is last of the this month

Execute

Interim Settlement Accounting

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Place cursor here and click “Display BV comparison” icon

BV = Business Volume

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Total

Scale basis

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Place cursor here and click “Display Settlement Document” icon

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Double-click Accounting Document

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The Rebate Provision debited at GR is now credited (knocked off)

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Rebate Income DEBITed to the Vendor Account (pay less)

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Display Updating of Business Volume

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Execute a business volume comparison and agreement.

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Last day of the current year

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Activate comparison

RED Traffic

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YELLOW traffic

SAVE

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GREEN traffic

(Business Volume achieved and Vendor Rebate is now possible for final settlement)

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Display Business Volumes

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Business Volume Check Active

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Set the Rebate Agreement to “RELEASE” status

for Final Settlements

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SAVE

Set Agreement to Status of Release for Settlement

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Run a Simulation first and then a Final Settlement for the Rebate settlement using the last day of the current year as the settlement date.

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Rebate Agreement number

Condition Granter in the Agreement

Last day of the current year

Current dates

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Run a Simulation first to “Perform Settlement Accounting”

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If you have error, it could be several reasons, double click the message to see information

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Use these programs to Re-Compile the INDEXs

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Perform Year End Final Settlement Again

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Check final settlement document here

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Click here then select “Settlement document” Push Button Above

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Interim Settlement

Doc 21

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Check FI Posting of Interim Settlement

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Initial is based on period specific scale which is 2%

(settlement in August based on August scale)

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Initial is based on period specific scale which is 2%

(settlement in August based on August scale)

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Final Settlement Doc 22

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Check

Final Settlement FI Posting

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Additional 100 posted to vendor as discount.

Additional of 100 EUR (from the 200 EUR posted at interim). Because Final year discount is at 3% ie: 300 EUR, therefore effectively another 100 EUR discount Rebate

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At 3% for Final Settlement