Setting up a share rebate

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 set by the vendor. The price is called the Cap Sell Amount.

You can specify a dollar amount for the Cap Sell Amount, or a percentage of a price. If you use a percentage to determine the Cap Sell Amount, the Multiplier field in Vendor Setup-Ordering-Rebates determines the price that is used to calculate the share rebate. If you specify a percentage for the Cap Sell Amount, you can accommodate different prices or fluctuating prices in situations where the rebate record applies to multiple products, such as a Product Line Rebate, or the price changes.

Use these instructions to specify a Multiplier for a vendor and set up a share rebate record. If you do not require a Multiplier value, start with step 6.

  1. Select Vendor > Setup > Vendor.
  2. Open the vendor record.
  3. Click Ordering, and then click Edit.
  4. In the Rebates section, select one of these values in the Multiplier field:
    • Base Price: This value is derived from the Base Price field in Product Warehouse Product Setup-General or Product Catalog Setup-Pricing.
    • List Price: This value is derived from the List Price field in Product Warehouse Product Setup-General or Product Catalog Setup-Pricing.
    • Cost (for Pricing): This value is determined by the Mark Up From field in SA Administrator Options-Products-Costs. If Include Addons is selected, addon costs are included in the cost and used in the rebate calculation.
  5. Click Save.
  6. Select Pricing and Discounting > Setup > Pricing.
  7. Create or maintain a vendor on sales rebate.

    Because the share rebate affects the margin, the Share Rebate option is not available if Margin Guaranteed is specified in the Rebate Calculation Type field.

  8. In the Share Rebate Settings section, specify the Share %. This percentage represents the amount you share with the vendor for every dollar you exceed the Cap Sell Amount.
  9. Specify the Cap Sell Amount in a dollar or percent amount. If you specify a percentage, ensure that you specify the Multiplier on the appropriate vendor records.
  10. Complete the record, and then click Save.
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