SAP
MM Vendor Rebate process and settings
Abstract -
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
Details -
Vendor
rebate overview
Rebate Arrangement is contract that
is made between the vendor & the buyer for giving certains percentage/value
of discounts by vendor on purchase over a particular value/quantity of
material.
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
Purchasing Organization based
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
Value based conditions (Scales) –
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.
Process
Flow
Inputs for Vendor Rebate
Arrangement
Master
data change – Vendor Master Update
Vendor Master update – Every Vendor rebate relevant vendor needs to be
marked with Subsequent settlement indicators
Master
data New– Rebate Arrangement - Overview (Screen 1) (MEB1)
Rebate Arrangement Condition
record – Similar to info record we need to maintain Rebate arrangement
condition record for vendor and material/material group with purchasing
organization combination.
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/Material group level –If a vendor is supplying range of materials
belonging to same material group for different plant then only one
rebate arrangement needs to maintained for one material group.
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
Rebate partner assignment (Different invoicing party for main vendor) – If ordering vendor is different than invoicing
party and payments are going to invoicing party. Then rebate amount has to be
debited to invoicing party. This scenario we can map in SAP
Required
Configuration data
If P.Orgs assigned to plant not
to company code. Then we can not use standard Rebate agreement type. We need to
create custom agreement type.
We also need other configuration
that is linked to custom rebate agreement type.
1. Assign rebate condition type to
rebate agreement type
2. Number
range assignment to rebate agreement type
3. Controls of subsequent settlement
for rebate agreement type
4. Condition type marked with
“Accruals” – This is required to get rebate condition type with value in PO as
statistical condition type.