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SAP Vendor Rebates

1) A vendor rebate is a retroactive discount paid by a vendor based on purchase volume over a specified time period as defined in a rebate agreement. 2) The rebate accrual tracks the value of rebates earned but not yet received based on relevant billing documents like invoices and credit memos. 3) Final settlement of a rebate agreement involves creating a credit memo to the vendor for the accumulated rebate total to pay out the earned rebate.

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404 views22 pages

SAP Vendor Rebates

1) A vendor rebate is a retroactive discount paid by a vendor based on purchase volume over a specified time period as defined in a rebate agreement. 2) The rebate accrual tracks the value of rebates earned but not yet received based on relevant billing documents like invoices and credit memos. 3) Final settlement of a rebate agreement involves creating a credit memo to the vendor for the accumulated rebate total to pay out the earned rebate.

Uploaded by

utalent
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DEVADHARSHAN VELUSAMY

SAP CERTIFIED MM CONSULTANT

What is a Vendor Rebate?


A Rebate is a special discount which is paid retroactively by the
vendor This discount is based on our purchase volume over a
specified time period.

You define the details of the rebate in a Rebate agreement


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Vendor Rebate?

Vendor Rebate process flow


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Material which we are going to procure -50065809

Prerequisites to be done before doing Rebates

Create a Dummy material -50065810


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

In Vendor Master -XK01 -GRM ENGG

Vendor Partner functions


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Agreement types

1000 Vendor Rebates(standard)

In standard 1000 you can do only final settlement; means you can only do it at the end date of validity
period. Because the agreement calendar is blank. When you maintain the proposed valid to an
agreement calendar, we can do both partial and final settlement

Creating Agreement type -MEB1 -143


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Here the business value comparison is unchecked, if these check boxes are ticked then before making
settlement in MEB4, we have to do business value comparison in MEU2.

Giving Conditions
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

To give the Dummy material to the agreement

Entering the dummy material

For every vendor specific agreement there should be one dummy material entered, because When we
make settlement the credit memo will be created with this material
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

What is accrual?

The rebate accrual is the amount of rebate that has been earned, but not yet received. Example: you
may earn a quarterly rebate based on overall spend with a given supplier, but that supplier might only
pay that rebate at the end of the year. (Meaning at the end of the agreement validity period).

Since rebates are not paid until the validity period of the rebate agreement has ended, the system must
keep track of all billing documents (invoices, credit and debit memos) that are relevant for rebate
processing. The system automatically posts accruals so that accounting has an overview of the
cumulated value of the rebate.
A rebate agreement is finally settled when you create a credit memo to the Vendor for the accumulated
rebate total.

Scenarios:

Performing Settlement without satisfying the conditions

Material -50065809

Vendor – GRM ENGG

PO Creation – ME21N – 4500022721

Here, you can see the accrual value is fetched in the rebate conditions.
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

MIGO - 5000001452

Checking in MEB4 by giving final settlement date after GR.


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

MIRO – No values related to rebate will be there when we do the Invoice


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Checking in FBL1N vendor payable.

Now trying to check by simulating in MEB4 with validity end date


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Now executing in MEB4 and checking the accounting entries

While executing with end period now, system gives a warning message
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

As you can see there is no discount value will be there, because we didn’t make the purchase above the
agreement conditions.
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Performing Settlement with satisfying the conditions


Material - 50065811

Pre-requisite in XK01
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Creating agreement with 1000 - 144

Scale value
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Entering the dummy material

Creating Purchase order -ME21N -4500022722

MIGO
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Accounting entries

MIRO
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Checking the vendor open items in FBL1N – only after making the settlement the discount value will
be considered

It will show only, the Purchase value before the final settlement
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Simulating in MEB4

Execution in MEB4 with validity end date


DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

Checking accounting entries

Checking FBL1N again with agreement end date 31.12.2022

The discount value is reduced with the vendor payable and it is the showing the amount which we have
to pay to the vendor.
DEVADHARSHAN VELUSAMY
SAP CERTIFIED MM CONSULTANT

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