Administrative options for rebates

Ensure that these administrative options accurately reflect your business decisions.

• There are two hierarchies that can be used depending on your selection in SA Administrator Options-Products-Rebates. If you select Level Hierarchy for Rebate Processing, the system looks at the rebate types (product, rebate type, price type, product line, or product category) to find the first qualifying record and uses it to calculate the rebate. If you select Customer Hierarchy for Rebate Processing, the system bases the calculation on the first qualifying customer and customer rebate type record. If more than one record is found, the one with the most recent start date is selected.
• If you use rebates by warehouse, you must specify a warehouse on each rebate record. If you leave the field blank, the setup applies to all warehouses, but the same setup for a specific warehouse is honored first.
• If you use rebates by region, you must specify a region on each rebate record. If an identical record is set up for a specific warehouse, the warehouse record is honored first.
• Select the ship to or job, rebate subtypes, and customer rebate types, if applicable. The rebate and rebate sub type records help minimize the number of records in your system by allowing you to set up values in SA Table Code Value Setup and group product rebate type and sub type as required for the rebated products in Product Warehouse Product Setup, Product Catalog Setup, and Customer Setup.
• The Subtract Customer Rebate from Price option in SA Administrator Options-Sales History-Rebates/Basis affects the update of Sales Manager files and the reports that run against these files. When selected, this option decreases the net sales totals recorded by including the rebate in the price charged to the customer. The rebate is also included in the Sales reports, such as Sales Entry Invoice Processing Report and Sales Order Register Report.
• The Subtract Vendor Rebates from Cost option in SA Administrator Options-Sales History-Rebates/Basis affects the update of Sales Manager files and the reports that run against these files. When selected, this option decreases the cost of sales totals recorded by including the rebate in the cost charged by the vendor. The vendor rebate is also included in the Sales reports, such as Sales Entry Invoice Processing Report and the Sales Exceptions Report.
• When a customer purchases a product that has a rebate attached, the rebate is calculated when the order is entered or invoiced, based on the Freeze Rebate field on the Extended section. This value defaults from the Recalc Rebate Through field in SA Administrator Options-Documents-Sales Order-Processing that you selected when you set up the rebate records. If you know of an impending expiration date and you do not want the rebate to change, you can use the Freeze Rebate field to override the administrative option.

For example, you can calculate and freeze a rebate at entry if you anticipate a rebate to expire by the time the order is invoiced. The rebate is not calculated during invoicing unless the Invoicing option is selected, even when a new PD Pricing Setup rebate record may now apply.

• The Calculate Vendor Rebate At field in SA Administrator Options-Documents-Sales Order-Processing enables you to determine when to calculate vendor rebates. By calculating a vendor rebate at entry, the costs and margins that are displayed throughout the system are net of the rebate amount as soon as an order is entered and can more accurately reflect your true cost. Otherwise, sales analysis reports would show a loss because the product was sold below cost. The rebates must be included in the analysis to show the correct margins. On the other hand, you can also calculate vendor rebates during invoice processing or enter the rebate directly in Vendor Invoice Center Entry.