Rebates
Rebates are used to promote products without making direct cost or price changes. Because only a portion of the rebates are claimed, they provide a worthwhile method of attracting sales. There are two types of rebates: customer rebates and vendor rebates. Rebates can also be calculated for nonstock products.
To learn more about setup, see these topics:
Customer rebates
Customer rebates are between you and the customer. When your customer purchases a rebated product, you are offering a discounted price. After a customer rebate record is set up, processing a customer rebate occurs within normal processing flows. The Include Rebate in Cost/Margin Displays option in SA Operator Setup controls whether operators see the margin before the rebate is applied or the post-rebate margin. SM Rebate Report compiles sales data and generates claim numbers.
Vendor rebates
Vendor rebates can be based on purchase or sales.
See Vendor rebates based on purchase and Vendor rebates based on sale.
Both types of vendor rebates are set up in PD Pricing Setup and can be based on warehouse transfers or drop shipments.
When you update inventory receipts that have vendor rebates based on purchase, an internal PDER record is created.
See File updating at receiving with rebates based on purchase.
This PDER file contains information about the rebate claim that you send to your vendor.
To apply for the vendor rebate, you must run the SM Rebate Report to generate claim numbers. When the vendor responds to your claim, you can reconcile the rebate granted by the vendor against the original amount that was claimed. Rebate claims are reconciled in PD Rebate Reconciliation Entry.
Several utilities, such as quick reconcile, add temporary receipts, and update functions are available. If a discrepancy exists, the rebate can be disputed and re-processed. The difference can also be posted to a write-off account in the General Ledger.
If you receive a rebate that does not have a claim number, you can accept it as a temporary receipt. You can enter the temporary receipt and reconcile it when you have a claim number.
You can apply a rebate or credit a rebate to a vendor’s account when the purchase order is costed or costs are updated for vendor on purchase rebates.
See Entering a vendor rebate and Cost updating for vendor rebates based on purchase.
You can run the PD Entry Journal Print Report to print the rebate reconciliation journals. The journals you print vary depending on the report parameters you choose.