Share rebates

A share rebate is a Vendor on Sale rebate in which the vendor reduces your rebate amount if you sell the product for an amount greater than the price, known as the Cap Sell Amount, set by the vendor. The reduced rebate amount is calculated using the amount by which you exceeded the Cap Sell Amount.

Rebate setup

To create a share rebate, you must select Share Rebate on a Vendor on Sales rebate record in PD Pricing Setup, and then specify a Cap Sell Amount and the percent of the rebate you must share with the vendor. Most Vendor on Sales rebates can be set up as a share rebate. Rebates with a rebate calculation type of Margin Guaranteed cannot be flagged as a share rebate because the share rebate affect the margin.

You can specify a dollar amount for the Cap Sell Amount, or a percentage. If you specify a percentage, it is multiplied by the value in the Multiplier field on the Vendor Setup-Ordering record, to convert it into a dollar amount. To ensure that the most current price is used, the calculation is performed when a order line is created, not when the record is set up. The vendor record used when calculating the Cap Sell Amount price is based on the Authorized Replenishment Path (ARP) vendor on the Product Warehouse Product Setup-General record.

If you select Base Price or List Price in the Multiplier field, the value is derived from a Product Warehouse Product Setup or Product Catalog Setup record. If you select Cost (for Pricing), the value is determined by the Mark Up From field in SA Administrator Options-Products-Costs. If the Include Addons option is selected, addon costs are included in the cost and used in the rebate calculation.

Calculation

When you add or maintain an order line, standard rebate logic reviews each rebate record and then applies the rebate that obtains the best net margin. The share rebate calculation is included in the final rebate amount for the rebate record. If the rebate logic selects a Vendor on Sale rebate that is flagged as share rebate for a order line, the amount in the Price field on the order line, which is the sell price, is compared to the Cap Sell Amount.

If the sell price is less than or equal to the Cap Sell Amount, the rebate amount is the entire rebate amount specified on the Vendor on Sale record. If the sell price is greater than the Cap Sell Amount, the rebate amount is reduced by the Share % for every dollar the sell price exceeds the Cap Sell Amount. The actual rebate amount is determined by subtracting the share amount from the Vendor on Sales rebate amount:

(Vendor on Sale Rebate Amt – [(Sell Price – Cap Sell $) * (Share % / 100)] = Actual Rebate Amount

These are some examples in which the sell price is the same, greater than, or less than the Cap Sell Amount:

Vendor on Sale Rebate Amt Cap Sell Amt Sell price amt Share % Actual Rebate Amt Logic
$50 $500 $500 75% $50 Because the sell price equals the Cap Sell Amount, your rebate amount is the full rebate amount.
$50 $500 $520 75% $35 Because the sell price is $20 more than Cap Sell Amount, the your rebate amount is reduced to $35. The vendor retains $15 of the Vendor on Sales rebate amount. The calculation for the actual rebate amount is: 50 - [($520 - $500) * (75% / 100)] = $35
$50 $500 $480 75% $50 Because the sell price is $20 less than the Cap Sell Amount, your rebate amount is the full rebate amount.

Application

Share rebates apply to most order lines added or maintained in these functions:

  • Sales Order Entry, including lines created through Copy, Shopping List, Import from Excel, and batch functions. Share rebates apply to kit component lines.
  • Sales Customer Pricing Inquiry: Create Quote function
  • Value Add Order Entry
  • SX.api, including eStorefront, Infor CPQ (CPQ), Storeroom, Auto Alternate Warehouse Line Fill (3PL), and other applications

Pricing records based on Rebated Margin or Rebated Cost cannot be combined with Share Rebates because the rebates fluctuate with the sell price. When an order line is added or maintained, and the pricing record selected is based on the Rebated Margin or Rebated Cost, then all share rebates are ignored.

In Sales Order Entry and Sales Customer Pricing Inquiry, this message is displayed if a share rebate cannot be applied because the pricing record is based on Rebated Margin or Rebated Cost: Price Based on Rebated Margin/Rebated Cost, therefore Share Rebates are Not Applicable. In all other functions in which you can create a order line, share rebates are ignored but a message is not provided.

Processing

As with other rebates, use the SM Rebate Report to submit the share rebate amount request to the vendor after the products have been sold and invoiced. After you receive a credit memo from the vendor, use the PD Rebate Reconciliation Entry to adjust and reconcile your claims.

Reporting

These values are included on the PD Rebates Master List Report:

  • Share Rebate flag
  • Share %
  • Cap Sell Amount: This value is displayed as a dollar or percentage amount.