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Rebate Agreement Process in SAP

To strengthen customer relationships, our partners offer various types of rebates to their clients. This requires managing numerous rebate strategies and performing tedious settlements.
As the customer and product base expands, the number of repetitive processes takes up more and more time. They then ask us: “Can this be automated?” We respond: “Of course, it can!”

The rebate agreement functionality that we implement within the SAP SD module allows for complete management of customer bonuses. The system relieves users from performing repetitive tasks and automates the calculation of bonuses. Rebate details are specified in the rebate agreement, including the bonus recipient, the duration of the agreement, the percentage amount of the payment, and the conditions of the agreement—whether for all sales or only a specific group of products.

Users have full control over transactions. Implementing this functionality enables precise tracking of granted rebates from a single screen. At any time, the user can view the current turnover of the agreement, the amount of posted accruals, and the list of invoices on which the accruals are based.

When posting sales invoices, the system automatically posts the accruals in the FI module. Thus, the bonus amount accumulates and is used in the final settlement of the agreement. The retroactive rebate calculation function even takes into account sales invoices entered into the system before the creation of the rebate agreement. As a result of settling the rebate agreement, a credit memo is generated, based on which the bonus is paid to the customer.

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