Manual rebates

Enablement

Manual rebate creation for contracts in PD Pricing Setup and Sales Order Entry is standard functionality. The system administrator must select the Rebate by Contract Line Number option in SA Administrator Options-Products to enable manual rebate creation for contract line numbers. This option causes the Use Contract Line # option to display in PD Pricing Setup and Sales Order Entry. When the Rebate by Contract Line Number option is selected, the Use Contract Line # and Manual Rebate options are selected by default, and you can specify the contract line number on the rebate record after specifying the contract number.

When you clear the Use Contract Line # option in PD Pricing Setup or Sales Order Entry, you can still create a manual rebate for the contract. In PD Pricing Setup-General, you must manually select the Manual Rebate option.

Additionally, the system administrator can select the Create Opposite Shipment Type in OEET option in SA Administrator Options-Products. This option causes the system to automatically create a duplicate record with the opposite shipment type after you save a manual rebate record in Sales Order Entry.

Setup

You can create a rebate record for a manual rebate in PD Pricing Setup and Sales Order Entry. These types of Vendor on Sale rebates can be a manual rebate:

• Product Rebate
• Rebate Type Rebate
• Product Price Type Rebate
• Product Line Rebate
• Product Category Rebate

To create a manual rebate record, you must specify the customer and contract number. Optionally, you can specify the customer ship to and contract line number. The Manual Rebate option must also be selected to exclude the manual rebate from Distribution SX.e rebate logic processing.

You can create manual rebate records with a rebate calculation type of Amount, Percent, Net, or Margin Guaranteed. When you create a manual rebate record that is also a share rebate, you cannot use the Margin Guaranteed type because a share rebate affects the margin.

Manual rebate functionality in Sales Order Entry is restricted. You can only create manual rebates that pertain to the order and line items. The values on the order or values derived from a related record determine the default or accepted values for these fields on the Manual Rebate view:

• Product
• Rebate Type
• Product Price Type
• Product Line
• Product Category
• Customer
• Ship To/Job
• Vendor
• Warehouse
• Rebate Region
• Ship Type

The Ship TypeSales Order Entry, setting determine whether the rebate applies to products shipped to your customers from your warehouse or directly from your vendor’s warehouse. In Warehouse or Drop Ship is automatically selected based on the order type or the status of line item. For example, Drop Ship would be selected for manual rebates created on a direct order.

Although you cannot change the default value for most fields in the Manual Rebate view, you can change the value in the Ship To, Warehouse, and Rebate Region fields.

• When a ship to is specified on the order, that ship to is the only valid value for the Ship To field but you can clear it. You cannot specify a ship to in the Manual Rebate view if a ship to was not specified on the order.
• By default, the Warehouse and Rebate Region fields are blank. You can specify a warehouse on the manual rebate if you specify the warehouse that is on the order. You can specify a region if the warehouse on the order is assigned to the region in Product Warehouse Description Setup.

After you create a manual rebate in setting determine whether thePD Pricing Setup or Sales Order Entry, you must maintain or delete the record in PD Pricing Setup. When you click Remove in the Manual Rebate view of Sales Order Entry, the record is detached from the line item. This action does not delete the record.

Application

In Sales Order Entry, you can apply a manual rebate to a line item by creating a manual rebate record or attaching an existing record in the Manual Rebate view. To access the Manual Rebate view, you must first specify the product and the price. The price can be the system price or a price you specified manually.

When you apply a manual rebate to a line item and the price of the item is based on rebate cost or rebate margin, line item is repriced. Pricing records based on rebated margin or rebated cost cannot be combined with share rebates because the rebate amount can fluctuate with the sell price. When you attach a manual rebate that is also a share rebate to a line item, and the pricing record used to calculate the price of the product is based on the rebated margin or rebated cost, an error occurs.

When you attach a manual rebate that is also a share rebate to a line item, the rebate amount is calculated twice. It is calculated when you first attach the manual rebate and again when you add the line to the order. The second calculation verifies that you did not change the price after selecting the rebate. When the second calculation results in a different rebate amount, you receive a message stating that the rebate amount was updated because the price was changed. When you change the price after attaching the rebate, the rebate amount, margin amount, or margin percent values are not updated until you add the line to the order, or update the line.

When the ARP vendor for a line item allows generic product rebates, you can attach a manual rebate that is also a generic product rebate to the line item. When the ARP vendor for the line item allows generic product rebates, all qualifying rebates for vendors that allow generic product rebates are available for selection on the Manual Rebate view. You can select the best rebate without vendor matching restrictions. For example, if the ARP vendor offers a 5 percent rebate but another vendor offers a 7 percent rebate, then you can attach the 7 percent rebate to the line item.

When you attach a manual rebate to a line item in Sales Order Entry, the Freeze Rebate setting for the line item is set to Entry. This setting overrides the Recalc Rebate Through setting in SA Administrator Options-Documents-Sales Orders-Processing to ensure that the rebate is not recalculated during sales invoice processing.

When the line item qualifies for non-manual rebate, the manual rebate you attach to the line item overrides the non-manual rebate. When a manual rebate is attached to a line item, it is displayed in Manual Rebate view. You cannot edit the rebate record after it is attached but you can click the Remove button to detach it from the line. When you remove a share rebate and update the line, the rebate logic is again applied to the line. When a pricing record based on rebated cost or rebated margin applies to the product, the product is then repriced in accordance with the pricing record.